What is London Living Rent?

We know how difficult it can be to take your first step on the property ladder, especially in the capital. The cost of rent combined with the cost of living can make saving for your own home feel impossible. But we don’t think it has to be that way, which is why we’re delighted to offer London Living Rent as a way to help you save for a deposit and make the move into your very own home.

London Living Rent is a government-backed scheme that enables Londoners to rent a home at a discounted rate comparable to renting privately, with the saving made each month going towards buying a home through Shared Ownership.

The aim of London Living Rent is to support middle-income buyers to get onto the property ladder and purchase their own homes. It’s designed to allow renters to save at their own pace over a period of years, as properties under London Living Rent guarantee tenants an assured shorthold tenancy of a minimum of three years and a maximum of ten.

Guide to London Living Rent

Benefits of London Living Rent

✔ Helping you save for a home

London Living Rent was introduced as a way to help renters in London save for their own home. The scheme works by offering you the opportunity to rent a home at a reduced rate. The below-market rent level allows you to save towards a deposit faster by reducing your monthly outgoings, leaving you with more money to save each month.

✔ Live in great locations

You can rent in a great locations without compromise due to the reduced rental rate and have the option to buy later through Shared Ownership. Find a home where London Living Rent is available.

✔ A step to Shared Ownership

London Living Rent is a type of affordable housing for Londoners, like Affordable Rent, Intermediate Market Rent and Shared Ownership, but it works a little differently. London Living Rent is for people who want to buy their own home, can afford the monthly outgoings associated with home ownership, but need support in raising enough funds for a deposit.

Am I eligible for London Living Rent home?

Eligibility can vary by development, however there are some overarching criteria that you need to meet to ensure you are eligible for London Living Rent.

Eligibility for London Living Rent is restricted to Londoners that either have 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.

Key eligibility criteria:

- Have a maximum household income of £60,000
- Live or work in London
- Have 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
- Not own any other residential home
- Be unable to currently buy a home (including through Shared Ownership) in your local area

When funded through the GLA’s Affordable Homes Programmes, London Living Rent is expected to actively support tenants into home ownership within ten years.

London Living Rent Eligibility

How much rent will I pay for a London Living Rent home?

While you’ll pay lower than market rents, the amount you pay depends on a number of factors including where the property is located. The Greater London Authority (GLA) sets maximum rents by number of bedrooms in every ward across London, and these figures are updated every year.

The rents are based on a third of average local household incomes. To make sure families can afford to take part in the scheme, the rent for a three-bedroom property is set at no more than 10% above the cost of a two-bedroom property. And the rent for any home must be at least 20% below its assessed market rent.

The average monthly rent, across London, for a 2-bedroom London Living Rent home is approximately £1,077 per month, which is almost three quarters of the median average market rent.

In most boroughs, the cost of renting through London Living Rent will be less than renting privately.

Guide to London Living Rent

London Living Rent - a route to home ownership

London Living Rent homes give tenants the chance to put themselves on a pathway to home ownership. Housing providers, like Peabody New Homes, are expected to take into account prospective tenants’ ability and desire to save as part of the affordability assessment. They will also support tenants into home ownership within ten years.

In most cases, London Living Rent tenants will be offered their current home on Shared Ownership terms at any time during the tenancy. If tenants do not take up this right within ten years, the provider would be expected to sell it to another eligible purchaser on a Shared Ownership basis.

Guide to Shared Ownership

Find your dream home

At Peabody New Homes, we have homes available to buy throughout London, the south east and Home Counties. Use our property search to discover a home for you and to register your interest.

Find out what our homeowners say

Buying a first home, getting married and preparing for the arrival of a baby are all busy life events. Raph and Jaye would know, after experiencing all these milestones simultaneously. They purchased a 25% share of a two-bedroom apartment at The Switch in Wimbledon, with a £42,600 deposit.

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After spending years renting in London, wealth manager Aroma Khan purchased a 30% share of a three bedroom apartment in Queensbury, northwest London. She had no idea that, just two years later, she would be staircasing her way up to 100% ownership with a friend.

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Luca moved to London from Italy to work at a university. After a few years renting in London, Luca was able to purchase a 50% share of a bright two-bedroom, two-bathroom home through Shared Ownership at Arden, in Lewisham.

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Guide to London Living Rent