Hackney Council has set up a wholly owned lettings company to get around rules that say it can’t directly manage homes for London Living Rent.Unlike other wholly owned housing companies set up by councils, this one will not build any homes itself.
Instead, it intends to acquire homes built through the council’s regeneration programme that would otherwise have been for outright sale or shared ownership and let some of them at London Living Rent.London Living Rent is a new tenure, set at a third of average local incomes. People renting on this tenure will also get an option to buy their home after a certain number of years.
In Hackney, the average Living Rent would be around £1,000 a month for a two-bedroom property, compared to the equivalent market rent of £1,800 a month.Philip Glanville, mayor of Hackney, said: “Too many people in Hackney, especially young renters, work hard and save hard but are struggling to make ends meet because of rocketing rents in the private sector.
“These homes for living rent will help those struggling to stay in Hackney or save for their first home – putting an extra £800 on average in their pocket every month to save towards a deposit.”Government restrictions do not allow councils to directly own homes that they let for Living Rent, but setting up this company avoids those restrictions.
The company will also let homes at market rent to cross-subsidise people renting at London Living Rent, but has said it will not charge excessive fees and will offer “secure and stable tenancies without unreasonable rent increases”.
Special Thanks to Inside Housing for their Article- https://www.insidehousing.co.uk/news/news/hackney-council-sets-up-lettings-company-54143