London Living Rent is one of the types of ‘genuinely affordable’ homes funded by the Mayor. The others are Social Rent and ‘London Affordable Rent’, for households on low incomes, and ‘London Shared Ownership’. London Living Rent is designed to help people transition from renting to shared ownership.
Affordable rents were introduced by the government to allow social housing providers, like us, to charge up to 80% of the local market rent for the homes we let. These rents may be higher than those we’ve charged in the past and the extra income we get will be used to help develop new homes for those in housing need.
Social housing is provided by either housing associations (not-for-profit organisations that own, let, and manage rented housing) or the local council. As a social tenant, you rent your home from the housing association or council, who act as the landlord.
What is the difference between London living rent and intermediate rent?
The London Living Rent – also known as intermediate rent – is an affordable housing scheme for middle-income Londoners. It’s designed specifically for people who are looking to build savings in order to try and buy a home.
London Living Rent homes are for middle-income households who want to build up savings to buy a home through shared ownership.
What does London Living rent mean?
London Living Rent is a type of intermediate affordable housing for middle-income Londoners who want to build up savings to buy a home. London Living Rent provides high quality rented homes on stable tenancies, with rents based on a third of local household incomes.
Affordable rent is rent that is set at up to 80% of market rent (including service charges). These properties of affordable rents are defined as ‘low cost’ rental accommodation and and so also class as ‘social housing’. This means that they are regulated by the Regulator of Social Housing.
Be 18 years old or over (55 or over for sheltered housing applicants) Not have refused any offer or nomination of suitable accommodation within the last two years. Have a housing need (e.g. are overcrowded or the accommodation is not suitable for medical reasons)
The vast majority of social housing was built with the help of grants or subsidies provided by the taxpayer. Some local authorities and housing associations have received tax funding to help with improving stock and the areas around social housing.
Social housing is lower-cost rented housing provided by landlords registered with the social housing regulator, known as a social landlord. Social landlords could be a council or a housing association. Social housing is likely to be cheaper and can offer greater security from eviction than private rented housing.
What is the current London Living Wage 2022?
The national living wage is a rebrand of the National Minimum Wage, and is £9.50 per hour (as of September 2022) across the whole country. It’s a minimum by law that all employers have to pay to employees over 23 years of age.
Does London living rent include service charge?
As stated on the website, London Living Rent rent levels include service charges. The draft London Plan also requires services charges to be taken into account (along with mortgage payments and rent) when assessing the affordability of shared ownership.
How do you qualify for affordable housing in London?
To be eligible for a London Living Rent home you must:
- Be renting in London.
- Have a maximum household income of £60,000.
- You must demonstrate the ability to save towards a purchase deposit.
- You must meet lenders general criteria to obtain mortgage finance.
Do people in London own their homes?
About 30% of homes are owned outright by their occupants, and a further 40% are owner-occupied on a mortgage. About 18% are social housing of some kind, and the remaining 12% are privately rented.
Shared Ownership could be ideal for people who cannot afford an entire home. You only need a mortgage for your share of the property. The deposit is based on your share, not the entire property – so it is generally much smaller compared to a traditional mortgage. You’ll pay less rent compared to regular renting.
Shared ownership is a great way to get a stake in a property when you can’t afford or can’t borrow enough to buy outright on the open market. There are, however, common complaints from people in shared ownership schemes. This guide points to the pitfalls you’ll want to avoid.
Is London a living wage?
The London Living Wage is £11.95 per hour. These figures are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in the UK and in London.
Why London rent is so high?
A shortage of housing and a rise in demand have driven up prices – and not just in London. The Office for National Statistics says that rents increased by 3.2% across the UK in the past year, the fastest rate since the financial crisis.
Do you get money for living in London?
The London Living Wage is an hourly rate of pay, currently set at £11.95. It is calculated independently to reflect the high cost of living in the capital, giving a worker in London and their family enough to afford the essentials and to save.
Affordable housing is open to a broader range of household incomes than social housing. Households do not have to be eligible for social housing to apply for affordable housing, though people who are eligible for social housing may also be eligible for affordable housing properties.
The rent is set at up to 80% of market rent using an RICS (Royal Institute of Chartered Surveyors) valuation. If the affordable rent is lower than the social rent, then the social rent will be charged.