London Mayor launches scheme to help first time buyers

Mayor Sadiq Khan is building on his commitment to provide more affordable homes by launching a new tenancy scheme to help renters save money for their home deposit, writes property developer Richard Carr.

London Living Rent

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Can the Mayor help improve the housing situation in London?

The London Mayor made making London more affordable to live in one of his commitments when he took over from Boris Johnson earlier this year. The early details of the London Living Rent outline proposals to help average earners in London save for a deposit by offering them a below market rent based a third of average household incomes in each borough.

Although the scheme is in its infancy, Khan has already began discussions with housing associations and boroughs to kick start the delivery of new homes.

On top of his tenancy scheme, the Mayor has also signalled his intention to protect London’s stock of social housing for those on low incomes.

Crisis

Speaking to propertywire.com, Khan said: “We know that fixing London’s housing crisis won’t happen overnight, and we need to do everything we can to help Londoners who are struggling to pay their rents. That’s why I’m working with housing associations and councils to build new homes for London Living Rent, homes that will offer hard working, low and middle income families an alternative to renting privately so they can get by and save for a deposit.”

Boroughs

London boroughs are already fitting over who will be the first to implement Khan’s tenancy scheme, with the new Mayor of Hackney, Phil Glanville, declaring that Hackney will be the first borough to build 500 homes for London Living Rent.

“Hackney is already building more social housing than anywhere else in the capital, but it’s also vital that there are more homes which Londoners on middle incomes can afford to rent and buy,” he said.

“The London Living Rent will help people who work hard but are getting priced out of our city, which is why I’m proud that my first act as Mayor is to pledge that Hackney will be the first borough to see 500 homes built at this affordable level.”

Richard Carr believes it will take a lot of joined up thinking between builders, housing associations and councils to make the scheme work. However, if that can be achieved then he believes it has the power to re energise the housing market in London and provide opportunities for first time buyers.