Richard Jeffries
Guest Reporter
London Mayor Sadiq Khan has unveiled plans to build 6,000 rent-controlled homes by 2030, aimed at providing affordable housing for the capital's key workers.
The scheme, announced today as City Hall launches a public consultation, could save essential workers up to £600 per month compared to private rental rates.
The initiative targets 'everyday heroes' including nurses, teachers and retail staff, offering them significantly reduced rents set at 40 per cent of average key worker household incomes.
The ambitious housing project aims to address London's ongoing affordability crisis for essential workers who keep the capital running.
The rent control mechanism will be based on a well-established affordability measure already included in the mayor's London Plan.
Under the proposed scheme, rents will be set at 40 per cent of average key worker household incomes after tax.
City Hall calculations suggest this approach would make the new homes "genuinely affordable" for London's essential workers.
The proposal comes as part of a newly launched consultation, with the mayor's office seeking feedback on the planned rent control measures.
This structured approach aims to create a sustainable model for affordable housing in the capital.
The financial benefits of the scheme are illustrated through current London rental rates.
A two-bedroom property in the private rental market averaged £1,825 per month in 2023.
In contrast, under the new rent-controlled scheme, a similar two-bedroom home would cost £1,236 per month for 2023/24.
The mayor's office has also outlined plans for managing future rent increases.
Annual rent adjustments would be linked to wage increases or set at a minimum of two per cent, whichever is higher.
This mechanism aims to ensure long-term affordability while accounting for economic changes.
The scheme will benefit a wide range of key workers, as defined by Office for National Statistics criteria.
Education sector workers eligible for the homes include nursery assistants, school secretaries and caretakers.
Those working in 'food and necessary goods' sectors will also qualify, including retail cashiers, shelf-fillers and shopkeepers.
Healthcare professionals form another key beneficiary group, with nurses, midwives and paramedics among those eligible.
The mayor's office has compiled a comprehensive list of qualifying key workers based on these ONS definitions.
This broad definition ensures the homes will support workers across essential public services.
Find Out More...
The scheme, announced today as City Hall launches a public consultation, could save essential workers up to £600 per month compared to private rental rates.
The initiative targets 'everyday heroes' including nurses, teachers and retail staff, offering them significantly reduced rents set at 40 per cent of average key worker household incomes.
The ambitious housing project aims to address London's ongoing affordability crisis for essential workers who keep the capital running.
The rent control mechanism will be based on a well-established affordability measure already included in the mayor's London Plan.
Under the proposed scheme, rents will be set at 40 per cent of average key worker household incomes after tax.
City Hall calculations suggest this approach would make the new homes "genuinely affordable" for London's essential workers.
The proposal comes as part of a newly launched consultation, with the mayor's office seeking feedback on the planned rent control measures.
This structured approach aims to create a sustainable model for affordable housing in the capital.
The financial benefits of the scheme are illustrated through current London rental rates.
A two-bedroom property in the private rental market averaged £1,825 per month in 2023.
In contrast, under the new rent-controlled scheme, a similar two-bedroom home would cost £1,236 per month for 2023/24.
The mayor's office has also outlined plans for managing future rent increases.
Annual rent adjustments would be linked to wage increases or set at a minimum of two per cent, whichever is higher.
This mechanism aims to ensure long-term affordability while accounting for economic changes.
The scheme will benefit a wide range of key workers, as defined by Office for National Statistics criteria.
Education sector workers eligible for the homes include nursery assistants, school secretaries and caretakers.
Those working in 'food and necessary goods' sectors will also qualify, including retail cashiers, shelf-fillers and shopkeepers.
Healthcare professionals form another key beneficiary group, with nurses, midwives and paramedics among those eligible.
The mayor's office has compiled a comprehensive list of qualifying key workers based on these ONS definitions.
This broad definition ensures the homes will support workers across essential public services.
Find Out More...