0:06 AM, 27th November 2024, About 2 hours ago
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London Mayor Sadiq Khan has unveiled plans to introduce rent-controlled homes to help make housing more affordable for key workers in the capital.
The proposed ‘Key Worker Living Rent’ homes would see rents capped at 40% of key workers’ average household incomes, potentially saving them up to £600 per month.
However, according to the Telegraph, the plan would see the homes being made available to barristers and solicitors.
And so long as the applicant earns less than £67,000 a year, the list of eligible professionals also includes actors, clergy, psychologists and vets.
Mr Khan’s proposal, outlined in his 2024 election manifesto, aims to address the soaring cost of living in London.
That would include those working in essential sectors such as healthcare, education and public transport.
By linking rents to incomes, the mayor hopes to create a more sustainable and equitable housing market.
Mr Khan said: “I am determined to do everything in my power to make housing more affordable for Londoners.
“The housing crisis in our capital doesn’t just affect those on the lowest incomes, it impacts those on ordinary incomes who struggle to meet high housing costs in London.
“That includes the everyday heroes who are the backbone of our city – our nurses, teachers, bus drivers, shop workers and cleaners.”
He added: “To deliver on my manifesto commitment, we want to introduce new rent-controlled homes for Londoners, which could save key workers up to £600 per month on their rent.”
The mayor is now seeking input from Londoners, including key workers, housing developers and providers, on how to implement this new model.
By working with stakeholders, Mr Khan aims to ensure that the new homes are both affordable and deliverable.
The consultation on the proposed rent-controlled homes is now open, and the mayor hopes to start building at least 6,000 of these homes by 2030.
The chief executive of Generation Rent, Ben Twomey, said: “While the cost of renting crisis continues to rage across the capital, it is welcome that the Mayor of London is looking at new ways to protect people from soaring rents.
“We rely on key workers for our communities to function. They build our homes, look after our health and educate our children, so everyone benefits when they can afford to live near their workplaces.
“Generation Rent encourages tenants and key workers to have their say on these new proposals.”
Kristian Niemietz, of the Institute of Economic Affairs think tank told the Telegraph that the proposals represented a ‘new type of public housing’ which was ‘not much of a solution’.
He said: “For years, Sadiq Khan has been lobbying successive governments to give him the powers to introduce rent controls in London. Previous Conservative governments have refused to give him those powers, and so far, it looks as if he will have no such luck under a Labour government either.
“For good reason: there are about 200 studies on the effects of rent controls, and the vast majority of them conclude that rent control does more harm than good.
“It now looks as if Mr Khan is trying to save face by just calling something ‘rent control’. What he is proposing is not a rent control in the conventional sense: it is a new type of public housing, and for public housing, rent levels are politically determined anyway.”
