For current renters looking to get onto the property ladder in the capital, London Living Rent (LLR) could be the perfect option to help you build up a deposit by saving extra money each month.
What is London Living Rent?
Funded by the Mayor of London, LLR is a Government-backed scheme that enables you to rent a home at a discounted rate – sometimes up to as much as 50% less than a similar property on the open market. This helps you to save additional money each month, which can go towards buying a home through Shared Ownership.
The main benefit to renting an LLR home is that you can go on to purchase your home, saving at your own pace. Plus, all properties that are on the LLR scheme guarantee tenants of an assured shorthold tenancy of a minimum of three years and a maximum of ten.
How much will I pay to rent a London Living Rent property?
The amount that you pay will depend on the location of the home you are renting.
To ensure that LLR continues to offer the best possible affordable option for renters in London, the Mayor publishes benchmark London Living Rent levels for every neighbourhood in the capital, which are updated annually. These are based on a third of average local household incomes and adjusted for the number of bedrooms in each home.
In most boroughs this will be a significant discount to the market-level rent.
Am I eligible for London Living Rent?
London Living Rent (LLR) is an excellent option for middle-income Londoners who want to save towards buying a home.
To be eligible for a London Living Rent home, you must:
- Live or currently work in London.
- Be able to provide one month’s rent in advance and five weeks’ rent as a tenancy deposit.
- Have the right to rent – proven by possession of British/EU/EEA Citizenship or a valid UK residency visa.
- Meet the minimum income and affordability standards – this will depend on the price of the home you are interested in.
- Have a formal tenancy (for example, in the private rented sector) or live in an informal arrangement with family or friends as a result of struggling with housing costs.
London Living Rent (LLR) candidates must not:
- Already own a property or be in the process of buying.
- Be able to afford a similar home in the local area through shared ownership or on the open market.
- Have a household income that exceeds £60,000.
- Have an adverse rental history, for example, rent arrears or damage to a property.
- Have a history of bankruptcy, county court judgments (CCJs) or Individual Voluntary Agreements (IVAs).
Please note that there will be a priority given to tenants who are in council housing, individuals who are Ministry of Defence personnel, and those threatened with homelessness.