In an unusual move, London Labour Mayor Sadiq Khan says home owners in dire financial difficulties should be able to switch tenure.
Khan says: “Owners in significant difficulty [should be allowed] to switch their housing tenure to affordable rented or shared equity to allow them to remain in their homes.”
The call comes in a lengthy statement from the Mayor in which he calls for government help for hard pressed mortgage payers in London.
Khan says hundreds of thousands of London homeowners could face a mortgage timebomb next year, placing financial strain on households already struggling to cope with the cost of living crisis.
His team’s new analysis claims that 384,000 London households have been hit by rising mortgage rates since the mini-Budget last October.
He says separate research by the Institute for Fiscal Studies shows that the additional cost to households in London is around £520 a month.
Khan adds that an estimated further 209,000 London households could see their mortgage payments rise over the next year as they come off their current fixed rate deals.
He is calling on the government to reinstate mortgage payment holidays, reverse cuts to support for mortgage interest through the social security system, and allow owners in significant difficulty to switch their housing tenure to affordable rented or shared equity to allow them to remain in their homes.
Khan says: “Many London homeowners already face sizable monthly mortgage payments alongside rising costs and put simply, they are struggling to cope.
“Hundreds of thousands more London households will see their mortgages skyrocket this year and next, with those on lower incomes at greatest risk of defaulting on their mortgage payments, getting into debt, or losing their homes.
“The Government have so far failed to recognise the scale of the crisis – I’m calling on Ministers to take urgent steps to protect London’s homeowners from the devastating impacts of high mortgage rates.”
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
Transport for London (TfL) has finally bowed to pressure from campaigners...
The new mayor of London has pledged to get tough on...
The mayor of London Sadiq Khan has vowed to crackdown on...
Generation Rent and London Mayor Sadiq Khan have jointly slammed landlords...
The vast majority of tenants are unaware of new laws introduced...
Despite the recent tax crackdown, buy-to-let continues to look an attractive...
The property market had enjoyed a boost thanks to the outcome...
There wasn’t much by way of good news in the Spring...
National Landlord Investment Show has announced that the former Leader of...
Twenty twenty-four is a pivotal year for landlords in the Private...
The management of BTL properties, whether it's a modest collection of...
We are thrilled to report that the first National Landlord Investment...
If interest rate rises weren’t enough to drive landlords out the...
Landlords play a crucial role in providing safe and comfortable housing...
.jpg)
Calling all landlords, Investors and property professionals: National Landlord Investment Show...
A recent survey by digital mortgage lender, Molo, revealed that nearly...
In the buy to let market, success goes beyond the transaction...
Mohammed Sharaz, a landlord from Bradford, recently seized an opportunity to...
We believe a well-functioning housing system is one that meets everyone’s...
It’s not just the weather that’s wet and dreary – the...
As the ‘big buy-to-let’ sell off gathers momentum, we take a...
The challenges facing the property market right now are well reported;...
If you are a landlord looking for the silver lining in...
This year is set to bring sweeping rental reforms that will...
Landlords are exiting the market in droves. According to an accountancy firm...
%20(002).png)
Newable Finance, the finance brokerage & advisory arm of Newable, launches...
As landlords continue to exit the market, there seems to be...
Homes in the rental sector are more likely to have old...
A council has prosecuted a landlord for letting out two HMOs...
The Labour-led government in Wales has issued a consultation proposing the...
Another council is looking for landlords with rental properties to match...
Another council is looking for landlords with rental properties to match...
.png)
Landlords and renters’ activists are at either end of the spectrum...
A prominent lettings sector expert is blaming the media for anti-landlord...
Who are you and what does it say on...
Who are you, and what does it say on...
Who are you? I am the Head of Broking for...
Join the conversation
Jump to latest comment and add your reply
Then they will be able to afford and pay their ULEZ and Congestion Charge bills.
True. Peter. If the brokers are ok with it though prob let em if it helps? 🤔 and see.
Did someone say Election???
What rented housing alternative?
The housing that is all being switched to owner occupiers. No clue the lot of them. Increasing interest rates iis inflationary when there is supply side driven inflation. Bring down interest rates, finance costs taken out of prices and allowing folk to afford their mortgages. Increasing Interest rates in demand side inflation is logical, but we are not. Why is no one in government able to understand basic economics.
Why does no one in the Bank of England understand basic economics, or does £600k per annum insulate them totally from the real world?
So who is going to buy the house in order to rent in back to the occupier? LA, Government, Building Society? Or does someone just say "you are paying £500 per month in mortgage repayment - from now on, that will be rent". And just leave the outstanding debt hanging?
I seem to remember that sell-and-rent-back was a racket a few years ago and it ended badly.
Rents round here are not any lower than mortgage repayments - at least not in the early years.
And so it begins! You will own nothing and be happy!
Could this be an underhanded way to remove ownership?
Alll people in public office should financially scrutinised to ensure there are no incentives for their so called ideas!
Sounds like it!
I thought exactly the same as you John when I read this thread. Removal of ownership by stealth.
What he is saying is ownership be held by the lender and they then charge ‘rent’. He’s effectively quoting the playbook “You will own nothing and be happy”
I thought you now needed qualifications to provide financial advice, or is Mayor Khan as well qualified in this as he is in respecting democracy?
Yes and I can't see how this could possibly work. Who would own the property and who would be managing it? Who does all the repairs? What happens when there are rent arrears?
Sad Landlord- the bank becomes the landlord operating on much more powerful tenancy agreement giving them the controls we should be getting. A commercial lease whereby the occupier will be liable for repairs ASB etc. Lenders will be motivated to seize control of the property
Peter L, you are so right he is so concerned that people can’t afford their Mortgage’s, he is saddling them with another liability for Congestion & ULEZ £15.00 + £12.50 per day = £834.17 per month???
That’s as much as some peoples Mortgage’s, but you can have one day a year free for one of them. Some Hypocrisy.
Another wef puppet
The establishment , your real enemy
If you are struggling to pay your mortgage, before any of these schemes, would you not talk to your lender and discuss other options first, like extending length of loan or go interest only?
Going to be so fun to see the average person pay the brunt of the incompetence of both the big banks and Government...AGAIN. This country at the minute is the equivalent of seeing a HGV driver on 1 hour of sleep, in the outside lane, doing 85mph and has sank 10 beers down him.
I am thinking of chartering a private jet from Vladimir Putin and inviting Mayor Khan, Michael Gove, Sir Starmer, six figure Polly Neate and other rabble rouser leaders on the flight.
I would like to use crowd funding and the bigger the jet we can afford the more guests we can invite onboard.
Any donations?
I’m in! Can you find a place for Beadles about?
I thought he could be the pilot and save the cost of the onboard bomb.
It’s absolutely ridiculous the Homelessness that has been caused by Shelter, Citizens Advice, Acorn and not least the Housing Secretary Mr Michael Gove the main culprit how can they make so many Tenants Homeless cause so much hardship, misery, suffering and get away with it.
This has been confirmed by Mr John’s Bird Big Issue, 2’228 lost their home this year between April & June this is up 41% on the same period last. Directly due to the Removing of Section 21 and THE RENTERS REFORM how can they be such Rogue’s as to hate Renters so much, now they have also taken on Board Labour Shadow Housing Secretary Lisa Nandy that can only have the affect of speed up
the eviction. Since Gove mooted THE RENTERS REFORM BILL he has caused 23’000 renters to loose their homes.
Shame on you Mr Michael Gove you have caused all this misery and Homelessness, why do you hate Tenants so much and more importantly why are you still Housing Secretary.
SHAME ON YOU.
London’s Mayor Khan says owners are in dire financial trouble so why is he pursuing policy’s which is causing this to happen.
Just add Mr Michael Gove and the situation becomes clear, the Governments daily unsustainable Housing Hotel Bill is £5’600’000.00 per day,
Well done & Congratulations you must proud of yourselves for causing so much damage and leave the tax payers to pick up this Bill.
The Government is now considering housing them in the water to save on the Bill that Mr Michael Gove created.
I must commend him he would now make the grade for a place in Lis Trusses Government .
Michael Foley, Another name for causing Homelessness cause is Sadiq Khan too. He needs to be out. HE is causing pain to tenants as well. It is not just ULEZ. He calls some landlords criminals, then just weed them out, not cause harm to all good landlords by helping to bring the Bill, which will need to do a "U" turn. People cannot afford mortgages and maintenance of their property. There are tenants who find is easier to rent as no worries of any costs of boiler, property maintenance etc. Now ULEZ, does he understand the burden he is putting on everyone. What does he do? Sit on a pedestal and makes rules, guidelines, byelaws.
Please login to comment