Take advantage of the London Living Rent scheme
What is the London Living Rent scheme?
If you want to live in London, but can’t yet afford to buy, it’s only natural that you’ll likely turn to renting a place in the meantime. However, the soaring cost of rent in the capital makes the goal of saving to buy all the more difficult. How can you be expected to save anything substantial while paying rent and living your best London lifestyle?
Do you want to rent a home while saving enough to buy in the future? The London Living Rent scheme could be the solution you need. But if you don’t have the first idea what it all means, here is everything you need to know about the scheme.
What is the London Living Rent scheme?
The London Living Rent scheme is an initiative that was launched in 2017, designed to help Londoners on lower incomes rent a home that they could afford. As if that didn’t sound noble enough, the scheme was re-pushed by the Mayor of London, Sadiq Khan, during the pandemic to give key workers somewhere affordable to live. However, as the price of rent and property prices continue to rise, the London Living Rent scheme still provides a handy alternative for eligible Londoners looking for a place to live for now and potentially the future!
How does the London Living Rent scheme work?
To help make renting as affordable as possible, London Living Rent sets rent levels at a third of the average local household income. This results in a rental fee that is a lot lower than the market rate for most properties in London! The cost of London Living Rent ultimately depends on what part of London you live in, but the average monthly rent is capped at no more than 80% of the market rate.
You’ll get to enjoy the money-saving benefits of the scheme for a minimum tenancy of three years, and a maximum of 10. After a period of three years and one day, you will then be given the option to buy your property through Shared Ownership. This is a huge help for people who want to rent a home, while building a bridge to future homeownership.
Who is eligible for the London Living Rent scheme?
The London Living Rent scheme provides a lot to be excited about – who wouldn’t be tempted by the prospect of renting a home at a much lower cost, all while saving for your future deposit? But before you can start dreaming of lower rental fees, you first have to make sure you are eligible! Here are some of the requirements to take part in the London Living Rent scheme:
- You must have a household income of less than £67,000 per year.
- You must either have a formal tenancy or live in an informal arrangement with family or friends as a result of struggling with housing costs.
- You can’t own any other residential property.
- You need to be able to prove that you can’t afford to buy a home in the local area.
- You must currently live or work in London.
- You must be able to provide references and credit checks.
How can the London Living Rent scheme help you?
If you are struggling to find an affordable flat to rent, the London Living Rent scheme could be the answer to your problems. One of the biggest advantages of this alternative housing option is that it gives you a stable and affordable home in a great city, saving you from paying through the nose for temporary accommodation. London Living Rent doesn’t just help people with lower incomes buy a home. You’ll also get access to some of the most affluent areas of London, many of which would be out of reach under normal market conditions!
Looking for an affordable way to rent a home? At Share to Buy, many of our housing providers offer affordable alternatives to renting, from the London Living Rent scheme to the Intermediate Rent scheme. To start saving money on your rent, check out some of our rental properties today!
