Mayor’s largest London Living Rent scheme launched
Hundreds more Londoners will be able to rent a genuinely affordable home and save money for a deposit to buy it, as the capital’s largest London Living Rent scheme launches in the Royal Docks.
Sadiq Khan has invested £6.8 million into The Sugar Works development at Royal Wharf, Silvertown, where housing association L&Q will deliver 243 London Living Rent homes - part of their deal struck with the Mayor last year to build 12,000 genuinely affordable homes including those based on social rent levels. The homes at The Sugar Works range from studios to four-bedroom homes, with residents, moving in from this week, paying on average around two-thirds of the market rent, and being able to purchase their home – either as a Shared Ownership or an outright sale – in the future.
The Mayor believes every Londoner deserves to have access to genuinely affordable housing and the opportunity to buy their own home. Delivering a manifesto commitment, the London Living Rent is helping middle-income earners who would otherwise typically be struggling in the private rented sector save for a deposit by offering rents based on a third of local average wages. In addition, it makes home ownership in the capital a realistic prospect for the many Londoners who feel priced out of the property market.
Rents in The Sugar Works are up to 50 per cent cheaper than local market rents, and range from £730 per month for a studio flat and £821 per month for a one-bed flat up to £1094 per month for a four-bedroom property. This compares to average rents of up to £1,394 for a one-bed flat and £2,171 for a four-bed in Newham – leading to savings of between £573 and £1,077 a month.
James Murray, Deputy Mayor for Housing and Residential Development, visited The Sugar Works today and met new residents. He said: “I am delighted to see tenants moving into the capital’s largest London Living Rent development so far, where they can benefit from one of the Mayor’s key manifesto commitments to make renting more affordable so people can save for a deposit. Fixing the capital’s housing crisis is a marathon not a sprint, and Government will need to play its part, but this shows what a difference Sadiq is making already by offering Londoners an alternative to the private rented sector and providing genuinely affordable homes at lower rents.”
The Sugar Works is part of the Royal Wharf – a brand new neighbourhood for London which will see the creation of 3,385 homes for approximately 10,000 residents.
The investment with L&Q is part of Sadiq’s record-breaking £3.15bn deal with the Government for starting 90,000 new affordable homes by 2021. Of these, two thirds are expected to be aimed at first-time buyers and will include homes for London Living Rent and shared ownership. Sadiq has provided £400m of this funding to London & Quadrant (L&Q), to start 12,000 affordable homes by March 2021 – of which it is set to achieve around 3,300 by the end of March this year.
Lukman Ahmed, PRS & Commercial Director at L&Q, said: “We are thrilled to be launching such a large project under the new London Living Rent scheme, giving more Londoners the opportunity to get on the first step of the property ladder. Private rental market prices can make saving for a deposit incredibly difficult for some households in the capital, so we’re pleased to be supporting such an innovative programme.
“L&Q is dedicated to providing Londoners with high quality, affordable accommodation. In April 2017 we signed an historic strategic partnership with the Mayor of London which will see £8bn invested to build 20,000 new homes across the capital, of which 12,000 will be affordable. This development at Sugar Works is a great example of how our partnership is delivering those much-needed affordable homes.”
Ms Younus, one of the first residents to move in to The Sugar Works, said: “The process was quick and easy. Gemma, Azelia and the team were very helpful throughout the whole process. The flat is so affordable. It’s amazing to get a new build flat with 2 good size rooms and a balcony for £912.”
Notes to editors
- The Mayor is introducing London Living Rent (LLR) as an intermediate affordable housing product with low rents that vary ward by ward across London. Eligibility is restricted to households that are currently renting, with a maximum income of £60,000 and who are not currently able to purchase a home in the local area. When funded through the Greater London Authority’s programme, LLR is expected to actively support tenants into home ownership within 10 years.
- The first residents moved to Royal Wharf in 2016 and Phase One is due to be completed in 2020. The project is the result of a £200 million deal and joint development plan between Ballymore Group and Oxley Holdings.
- As well as being one of London’s largest Opportunity Areas, the Royal Docks is also London’s only Enterprise Zone (EZ) - a joint initiative between the Mayor of London and the Mayor of Newham. The EZ enables business rate income to be retained and recycled locally to help accelerate local economic development and housing growth. The Mayor of London is also a significant landowner in the wider Royal Docks Opportunity Area and is working directly with developers to transform the area into a vibrant new urban quarter for London – with the potential for up to 25,500 new homes and 60,000 new jobs. Significant housing-led mixed-use development is already completed and underway, such as at Royal Wharf, Barrier Park East, Gallions Quarter and Great Eastern Quays.