Sadiq Khan proposes 6,000 rent controlled flats for key workers in new trial

The Mayor of London has announced a new proposal for 'rent controlled homes' in London, which he says could save key workers around £600 a month in rent. On Monday (November 25), Sadiq Khan launched a consultation for the proposal, which will see 6,000 new homes built by 2030.

These rent controlled homes are for Londoners on ordinary incomes, who can't get social housing but struggle to pay high market rents and will be targeted at key workers. And, to make sure they're affordable for workers, rents will be linked directly to key workers’ incomes, the Mayor's office has said.

Mr Khan has proposed rents based on 40 per cent of average key worker household incomes after tax, which he says could save key workers up to £600 per month on their rent when compared to renting from a private landlord. These intermediate homes will be for long-term rent for households with an income below the threshold for accessing intermediate rented housing in London, which is currently £67,000 a year.

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However, these homes will not be replacing social rented homes, but will be an alternative option. Key workers who will be eligible for these homes include nurses, teachers, bus drivers and shop workers.

The Mayor of London, Sadiq Khan, said: “I am determined to do everything in my power to make housing more affordable for Londoners. The housing crisis in our capital doesn’t just affect those on the lowest incomes, it impacts those on ordinary incomes who struggle to meet high housing costs in London.

“That includes the everyday heroes who are the backbone of our city – our nurses, teachers, bus drivers, shop workers, and cleaners. To deliver on my manifesto commitment, we want to introduce new rent-controlled homes for Londoners, which could save key workers up to £600 per month on their rent.

“I welcome views from all Londoners on how we can make this new type of housing a success, for the thousands who need and deserve a more affordable home, as we build a fairer London for everyone.”

And UNISON London regional secretary Jo Galloway said: “This is a crucial step in tackling the housing crisis facing London’s key workers. It should help deliver more safe, secure and affordable homes for staff who keep the capital's vital public services running. UNISON has long campaigned for a fairer rental market and for essential workers’ voices to be heard and represented.”

A consultation has been launched, which you can view and respond to here. It will close in March 2025.

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