Myth-busting the London Living Rent scheme 

Myths often surround home-buying and renting schemes. When there’s so much noise vying for your attention, it can be hard to know what to listen to. That’s why separating fact from fiction is so crucial.  

To help you understand London Living Rent, we’re doing just that by myth-busting the scheme. 

What is the London Living Rent scheme? 

London Living Rent is a type of affordable housing for middle-income Londoners. Rents are offered at a discounted rate to help tenants build up their savings to buy a home through Shared Ownership.

Our London Living Rent hub is full of resources that explain the scheme. And below, we’ve debunked common misconceptions to help you determine whether it’s the right path for you.

Five myths about London Living Rent 

Myth one: It’s the same as social rent 

Reality: 

London Living Rent and social rent are two different housing schemes. 

London Living Rent is a scheme from the Mayor of London that helps middle-income earners in the capital rent their way to homeownership. Available to households with a maximum income of £75,000, the scheme aims to help them build savings for a deposit to buy a Shared Ownership home while renting at a discounted rate. Several housing associations provide London Living Rent homes in diverse areas across the capital. 

Meanwhile, social rent is a nationwide programme that provides long-term security to low-income households and those with particular needs. Local councils and housing associations provide the homes, and the government subsidises the rent to make the cost significantly lower than renting privately. 

Myth two: Only first time buyers can apply for London Living Rent 

Reality: 

Although London Living Rent is aimed at first time buyers, anyone who meets the eligibility criteria can apply for the scheme. It’s for Londoners who want to take meaningful steps towards homeownership but find it financially challenging to do so. 

You can apply for a London Living Rent home if you meet the following eligibility criteria: 

• You live or work in London. 

• You have a formal tenancy (through renting privately) or live with family/friends due to struggling with housing costs. 

• You have a maximum annual household income of £75,000. 

• You don’t already own a home. 

• You’re unable to afford to buy a home in your local area, including through Shared Ownership. 

• You’re 18 or over. 

Myth three: Rents are the same across the city 

Reality: 

Rents for London Living Rent homes are capped, but the amount varies depending on the property’s size and location.

Each London neighbourhood has benchmark rent levels, calculated as one-third of the average local household income and adjusted for the number of bedrooms in the home. The Mayor of London updates the benchmark levels annually.  

While housing associations have the flexibility to charge rents below the benchmark levels, they cannot charge more than them when setting rents for new tenancies. 

Myth four: It’s no different from renting privately and saving  

Reality: 

Due to the affordability safeguards in place, most London Living Rent homes are offered at a significant discount compared to private rents. This discount allows households to save a deposit for buying a home with Shared Ownership.  

Housing providers are actively encouraged to support tenants in reaching their savings goal, and many provide financial guidance, making it possible to buy within 10 years of starting the tenancy. 

Myth five: You’ll be stuck renting forever 

Reality: 

London Living Rent homes are offered on Assured Shorthold Tenancies to give eligible households security and stability while they build up their savings.  

Most London Living Rent providers offer tenancies for a minimum of three years, with a maximum of 10 years. During this time, tenants are given the option to purchase the home through Shared Ownership. 

Find London Living Rent homes in your area 

Now that you have a clearer understanding of the London Living Rent scheme, you’re better equipped to choose whether it’s a realistic path to homeownership for you. 

London Living Rent providers list their available homes on Share to Buy. Visit our property portal to search for available homes across the capital.