London Living Rent (LLR) has launched across London this year, but what will this new initiative offer, and are you eligible? To help answer these questions, have a read of our complete guide to London Living Rent below.
London Living Rent (LLR) is an incredible new initiative from the Mayor of London focused on helping middle-income Londoners that want to build up savings to purchase their first home. It provides high-quality homes such as Peabody New Homes’ Macfarlane Place in sought-after locations on stable tenancies with rents based on a third of local household incomes. This scheme allows money saved on rent to go towards a deposit for your own home.
What is London Living Rent?
London Living Rent is one type of affordable housing aimed at middle-income Londoners wanting to build up savings to buy a home. Funded by the Mayor of London, it is designed to help people transition from renting to home ownership.
London Living Rent is part of Homes for Londoners, which brings together all of the Mayor's work to address the housing crisis. Other options are Social Rent, London Affordable Rent and Shared Ownership London.
How does it work?
London Living Rent homes are offered below-market rent and on tenancies of a minimum of three years and a maximum of 10 years. Tenants are supported to save via reduced rent rates and then given the option to buy their home through Shared Ownership after three years and one day has passed.
Successful applicants for a Peabody New Homes' London Living Rent property will then be actively supported by us into homeownership via Shared Ownership within ten years of entering the scheme.
The Mayor publishes London Living Rent benchmark levels for every neighbourhood in the capital, which is updated annually. The benchmarks are based on a third of average local household incomes and adjusted for the number of bedrooms in each home.
How much rent would I pay in a London Living Rent home?
The rent you could pay varies, as this is calculated based on where you live in London. In most boroughs, this will be significantly lower than the market-level rent, as it is capped at no more than 80% of a market rent figure. For example, the average monthly rent for a two-bedroom home with London Living Rent is £1,077 per month.
To ensure affordable, family-sized homes are available under the scheme, the rent for a 3-bedroom home will be no more than 10% above a 2-bedroom rent.
London Living Rent homes are for middle-income households who want to build up savings to buy a home through Shared Ownership.
Am I eligible for a London Living Rent home?
To be eligible for a London Living Rent home, you must:
- Live or work in London
- Have either a formal tenancy (for example, in the private rented sector) or live in an informal arrangement with family or friends as a result of struggling with housing costs
- Have a maximum household income of £60,000
- Not own any other residential home
- Be unable to currently buy a home (including through Shared Ownership) in your local area
How do I apply for London Living Rent?
Once you’ve passed the eligibility checks, the next step is finding a housing provider like Peabody New Homes that offers the scheme. You can find a London Living Rent apartment through the Homes for London property search, where you can use various filters to find the perfect home for your circumstances. The best part? All London Living Rent homes are high-quality apartments, which means you can live in a lush space without waiting to save a huge deposit.
A stylish collection of 1 & 2 bedroom apartments available through London Living Rent and Shared Ownership; including spacious wheelchair adaptable homes* in White City, W12.
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