What is London Living Rent?
We know how difficult it can be to take your first step on the property ladder, especially in the capital. The cost of rent combined with the cost of living can make saving for your own home feel impossible. But we don’t think it has to be that way, which is why we’re delighted to offer London Living Rent as a way to help you save for a deposit and make the move into your very own home.
London Living Rent is a government-backed scheme that enables Londoners to rent a home at a discounted rate comparable to renting privately, with the saving made each month going towards buying a home through Shared Ownership.
The aim of London Living Rent is to support middle-income buyers to get onto the property ladder and purchase their own homes. It’s designed to allow renters to save at their own pace over a period of years, as properties under London Living Rent guarantee tenants an assured shorthold tenancy of a minimum of three years and a maximum of ten.
Benefits of London Living Rent
With reduced rental costs, you can save money every month and put it aside for a deposit to buy your own home.
Please note Peabody New Homes does not currently have any London Living Rent homes available, but more are coming soon.
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Helping you save for a home
London Living Rent allows you the opportunity to rent a home at a reduced rate. The below-market rent level allows you to save towards a deposit faster by reducing your monthly outgoings.
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Live in great locations
You can rent in a great locations without compromise due to the reduced rental rate and have the option to buy later through Shared Ownership.
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A step to Shared Ownership
London Living Rent is for people who want to buy their own home, can afford the monthly outgoings associated with home ownership, but need support in raising enough funds for a deposit.
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Flexibility
Get all the freedom and flexibility of renting, with the reassurance of saving towards eventually stepping into home ownership.
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Support
Our team is dedicated to supporting you throughout the home-buying journey and will support you in ensuring you are on track for your saving goals to purchase through Shared Ownership in the future.
Am I eligible for a London Living Rent home?
Eligibility can vary by development, however there are some overarching criteria that you need to meet to ensure you are eligible for London Living Rent.
Eligibility for London Living Rent is restricted to Londoners that either 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.
Key eligibility criteria:
- Have a maximum household income of £75,000
- Live or work in London
- 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
- Not own any other residential home
- Be unable to currently buy a home (including through Shared Ownership) in your local area
When funded through the GLA’s Affordable Homes Programmes, London Living Rent is expected to actively support tenants into home ownership within ten years.
How much rent will I pay for a London Living Rent home?
While you’ll pay lower than market rents, the amount you pay depends on a number of factors including where the property is located. The Greater London Authority (GLA) sets maximum rents by number of bedrooms in every ward across London, and these figures are updated every year.
The rents are based on a third of average local household incomes. To make sure families can afford to take part in the scheme, the rent for a three-bedroom property is set at no more than 10% above the cost of a two-bedroom property. And the rent for any home must be at least 20% below its assessed market rent.
The average monthly rent, across London, for a 2-bedroom London Living Rent home is approximately £1,409 per month, which is almost three quarters of the median average market rent.
In most boroughs, the cost of renting through London Living Rent will be less than renting privately.
London Living Rent - a route to home ownership
London Living Rent homes give tenants the chance to put themselves on a pathway to home ownership.
Housing providers, like Peabody New Homes, are expected to take into account prospective tenants’ ability and desire to save as part of the affordability assessment. They will also support tenants into home ownership within ten years.
In most cases, London Living Rent tenants will be offered their current home on Shared Ownership terms at any time during the tenancy.
If tenants do not take up this right within ten years, the provider would be expected to sell it to another eligible purchaser on a Shared Ownership basis.
While we currently don’t have any London Living Rent homes available, we do offer a range of Shared Ownership homes.
Pros and Cons of London Living Rent
| Pros | Cons |
|---|---|
| Lower monthly rent helps you save faster
You can get reduced, below‑market rent, helping you put aside more each month toward a future deposit. A pathway into home ownershipLondon Living Rent is designed to support renters into buying their own home. Live in great locations at a more affordable costTenants can access homes in desirable London areas without the higher private‑rent price tag. Flexibility while you saveYou get the freedom of renting with the benefit of structured support to keep you on track toward purchasing. |
Eligibility criteria can limit who qualifies
Applicants must meet specific requirements, including income caps, London residency or employment, and not owning another home. Tenancy length is cappedLondon Living Rent is intended to support ownership within 3 - 10 years, so it may not suit those wanting long‑term renting without a purchase plan. Rent varies by locationAlthough discounted, rent levels still depend on area and property size. In some boroughs, costs may remain close to private rents. |
Frequently Asked Questions about London Living Rent
London Living Rent helps you save for a deposit by reducing your monthly rent, allowing you to put aside more each month.
The rent is set below local market rates, and over time, those savings can build into a deposit, helping you move towards buying a property. Sometimes it is the same home through Shared Ownership when you’re ready.
London Living Rent homes have rents below the local market rate. The exact amount you’ll pay will depend on the area and size of the home.
As a guide, the average London Living Rent for a 2‑bed home across London is approximately £1,409 per month, which is significantly lower than typical private rents in most boroughs.
Yes, in most cases, you can buy your home through Shared Ownership after renting with London Living Rent.
You can usually purchase your current home on Shared Ownership terms at any time during your tenancy when you’re ready. If you choose not to buy within ten years, the provider may then offer the home to another eligible Shared Ownership buyer.
No, you don’t need to already live in London to qualify for London Living Rent.
To be eligible, you must live or work in London, alongside meeting the other key criteria such as income limits, having a formal or informal rental arrangement, and not owning another residential property.
"Discovering Shared Ownership was honestly life-changing. I never even considered buying in London before - it just didn’t seem feasible with how expensive it is. After learning that Peabody is one of the largest housing associations that provide Shared Ownership in the UK and reading numerous positive reviews, I felt confident moving forward with them. The Peabody team is brilliant. They were so communicative and accommodating."