Insight

London Living Rent

What could this mean for new development?

07 Jun 2017
Despite the recent political uncertainty brought about by the general election and the outcome of the EU Referendum, the cost of housing remains Londoners’ biggest concern about living in the capital.
 
The Mayor’s new London Living Rent is an intermediate affordable housing product, with rents based on one third of average local household incomes. Designed to provide discounted rents to households looking to save for a deposit to buy their own home, those eligible have to have a combined income level of below £60,000 p.a. and cannot be existing homeowners.
 
While this policy is in its infancy and only found in London given the Mayor’s housing agenda, the principles of the policy may well be adopted by other city mayors in the future. Therefore, the results of the policy’s introduction in London will be of particular interest to developers across the country.
 
Our latest Insight Focus explores the spatial variation of the London Living Rent, highlights how the arbitrary calculation of the rent level will lead to some local market distortions and describes the variations between inner and outer London.