Sadiq Khan has outlined plans for a London Living Rent, which would drop the price of a two-bed flat to under £1,000 per month. Finally, some hope.
During a visit to New York, the newly-elected Mayor of London, Sadiq Khan, outlined his plans for the system that will enable renters to move into newly built homes and save for a deposit on a new house.
Khan proposed that rent will be based on a third of combined household incomes. Currently, it's around £1,400 minimum.
Khan said: "We know that fixing London's housing crisis won't happen overnight, and we need to do everything we can to help Londoners who are struggling to pay their rents.
"That's why I'm working with housing associations and councils to build new homes for London Living Rent - homes that will offer hard-working, low and middle-income families an alternative to renting privately so they can get by and save for a deposit."
He said that he's already working with boroughs to create affordable housing to be offered to homes earning between £35,000 and £45,000, with Hackney the first borough to become eligible.
Mayor of Hackney, Philip Glanville, said: "Hackney is already building more social housing than anywhere else in the capital, but it's also vital that there are more homes which Londoners on middle-incomes can afford to rent and buy. The London Living Rent will help people who work hard but are getting priced out of our city, which is why I'm proud that my first act as Mayor is to pledge that Hackney will be the first borough to see 500 homes built at this affordable level."
Khan also wants to protect social housing in London and wants to end rent conversions - the practice of taking social housing and re-letting it at higher rates.