Defining affordable rents (Supplementary) [1]

Session date: 
May 25, 2016
Question By: 
Andrew Boff
GLA Conservatives
Asked Of: 
The Mayor


Andrew Boff AM:  Mr Mayor, will the London Living Rent deliver upon your commitment to make affordable housing genuinely affordable?

Supplementary To: 


Answer for Defining affordable rents (Supplementary) [1]

Answer for Defining affordable rents (Supplementary) [1]

Answered By: 
The Mayor

Sadiq Khan (Mayor of London):  That is the intention, Assembly Member Boff.  There are three parts to the genuinely affordable homes that we are talking about.  One is social rented council properties and you will recognise that that is linked to a formula to do with manual workers’ salaries.  The second part of that is the London Living Rent at, in broad terms, one-third of average local earnings.  The third part of that is shared ownership and part-buy/part-rent.


Andrew Boff AM:  Thank you.  Will new homes whose rent is greater than the London Living Rent count towards your 50% affordable target?


Sadiq Khan (Mayor of London):  That is one of the things that we are looking into because there are some submarket offers already available.  One of the things that I want to talk to the Government about is the Starter Homes that it is talking about because, obviously, in London, there is a particular problem with Starter Homes costing up to £450,000.  That is a piece of work that we need to do.


Andrew Boff AM:  It is possible, therefore, that the new homes that you are responsible for providing or allowing to be provided could charge more than the London Living Rent and yet still be classified as “affordable” by your estimation?


Sadiq Khan (Mayor of London):  My definition is what I have set out with the three types of price structures going to genuinely affordable.  However, the discussion we want to have is to talk about what other things are available that could be part and parcel of the offer we make to Londoners because we want a diversity of homes being built in London.


Andrew Boff AM:  All right, but in determining your 50% target, the London Living Rent is an essential part of that, I am assuming, and those London Living Rent properties will feature as part of that affordable target?


Sadiq Khan (Mayor of London):  Yes.


Andrew Boff AM:  Thank you.