Sadiq Khan pledges to build 6,000 ‘affordable’ homes and bring in rent controls

Sadiq Khan pledges to build 6,000 ‘affordable’ homes and bring in rent controls

9:53 AM, 8th April 2024, About 9 months ago 24

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London’s mayor, Sadiq Khan, says he is the ‘renter’s champion’ and is committing to building 6,000 ‘affordable’ homes by 2030 with rents tied to the earnings of key workers.

Mr Khan was speaking at the launch of his third mayoral bid and will use powers he has already to cap the rent for these homes at one-third of the average wage of key workers.

The homes will be built by local councils and housing associations, who will identify suitable land for development.

There’s no indication of how much the house-building programme will cost.

The Conservative mayoral candidate poured scorn on the plans, saying: “Rent controls have never worked, and Sadiq knows it.”

‘Renters are at the sharp end’

Mr Khan said: “Renters are at the sharp end of the country’s housing crisis and need a mayor who’s prepared to fight their corner.

“I’ve been calling for the power to freeze rents in the capital for years, but the government has refused.”

He went on: “I’m not willing to stand by and do nothing so I commit to delivering new rent control homes across London, with 6,000 in the first phase.

“These will be homes for rent which key workers and middle-income Londoners can afford.”

Introduce more comprehensive property licensing reforms

The mayor also expressed his desire to collaborate with a future Labour government to introduce more comprehensive property licensing reforms.

This would empower councils to support renters in reclaiming up to two years of rent from landlords who violate the rules.

However, rent controls are not currently a national Labour Party policy.

‘Why is he just announcing it now?’

Conservative mayoral candidate Susan Hall said: “If Sadiq has been able to do this the whole time, why is he just announcing it now? Rent controls have never worked, and Sadiq knows it.

“His hair-brained plan would worsen the housing crisis for Londoners and shows he simply isn’t listening.

“I am listening to Londoners, and that’s why I would build more family-sized homes, to increase supply – and therefore bring down rents.”

The announcement comes after the Green Party launched its own local elections campaign with a push for more affordable homes.

The party is calling for more funding to help councils build homes, an end to the Right to Buy and the introduction of rent controls in places where the rental market is ‘overheated’.


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Bristol Landlord

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14:59 PM, 8th April 2024, About 9 months ago

For the future of rent controls in London I would suggest Khan takes a serious look at how it’s worked out for tenants in Barcelona.
The Catalan authorities are now on the third attempt.

https://www.spanishpropertyinsight.com/2024/04/05/catalonias-third-attempt-at-rent-controls-gets-off-to-a-rocky-start/

SCP

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15:02 PM, 8th April 2024, About 9 months ago

What exactly is the Mayor proposing: to rent controll ALL London housing or the ones he will build called affordable housing ?

Beaver

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15:06 PM, 8th April 2024, About 9 months ago

Reply to the comment left by SCP at 08/04/2024 - 15:02He's argued previously to have the ability to control all rents.

But this proposal appears to be to build 6,000 affordable homes for key workers [primarily public sector workers if his previous definition of key worker still stands].

It wasn't clear to me where he's going to get the money for the 6,000 homes for these public sector workers.

Reluctant Landlord

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17:45 PM, 8th April 2024, About 9 months ago

Reply to the comment left by Beaver at 08/04/2024 - 15:06from ULEZ? He's just taxing the only ones that work in the city - now ironic he wants to build property for those workers struggling to pay the rent as they are the same people probably getting stung by the ULEZ in the first place ....

Cider Drinker

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18:08 PM, 8th April 2024, About 9 months ago

Reply to the comment left by Reluctant Landlord at 08/04/2024 - 17:45
Khan wants to fill London with people that’ll vote for him.

No

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22:50 PM, 8th April 2024, About 9 months ago

He's a complete pr__k.
I am sick of listening to politicians slating landlord's.
Perhaps they should try it & see the sh#t we get. They wouldn't stay the course.
They wouldn't even dare approach some of my tenants without protection.
I have had some really rough individuals & families turn there lives around because I gave them a chance.
However according to politicians, shelter etc I am a landlord so I must be a bad person.

Beaver

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12:39 PM, 9th April 2024, About 9 months ago

Reply to the comment left by Cider Drinker at 08/04/2024 - 18:08
Quite possibly.

I would guess that the average cost of building residential accommodation in London is somewhere between £200,000 and £300,000. So let's say an average build cost of around £250,000.

Sadik Khan has apparently said that he wants to build 6,000 properties to start with. So that's a build cost of approximately £1,500,000,000. So the really big question is, Sadik Khan, how are you going to finance that? Because somebody has to pay. Now if it isn't private industry a.k.a. the PRS that's paying for that then it has to be either local or national taxpayers doesn't it?

And even if Sadik Khan decides he's going to reduce the cost of that build by using compulsory purchase orders there's still a big cost to that and somebody still has to pay.

Reluctant Landlord

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13:00 PM, 9th April 2024, About 9 months ago

Reply to the comment left by Beaver at 09/04/2024 - 12:39
you have to find/purchase the land first!

Rather than new build, better to utilise the countless council homes/flats left empty/in disrepair in existing locations within London. I grant you probably wont get as many as 6,000 homes released as costs for refurb/update probably more, BUT how do you expect these key workers to be able to afford 'affordable rents' if they are then spending money just to get to into the city to actually work?

Where do you think the land is in London to build 6,000 homes exactly that makes it even viable to let them at 'affordable rent'? (which is 80% of market rate).

You might as well build them in Wales!

Beaver

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13:27 PM, 9th April 2024, About 9 months ago

Reply to the comment left by Reluctant Landlord at 09/04/2024 - 13:00
That's right: But according to this post Sadik Khan says he is going to build 6,000 affordable homes. We all know that the costs of demolition/refurbishment and developing brownfield sites is high, which is why developers like building on greenfield sites.

So how is Sadik Khan intending to pay for this? How's he planning to fund it? Anyone know?

Reluctant Landlord

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14:34 PM, 9th April 2024, About 9 months ago

Reply to the comment left by Beaver at 09/04/2024 - 13:27
its not going to be developers unless they build and then sell to him directly - there's no profit on that business model for them to build and lease. Build rates high due to labour (lack of) and expensive cost of supplies and materials.

Developers want to build, and sell as fast as and move onto the next project. Planning (cost of) and time to get it, is a ball ache too so where's even the incentive to bother? Private house builders are not even bothering to finish/mothballing work now.

Investment companies when this is clearly not a sustainable investment and looking forward essentially a capped income stream? Nope they wont be interested.

Who does that leave?
No one - which is why his 'pledge' is mere electioneering piffle.

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