London’s Labour Mayor Sadiq Khan has unveiled plans for ‘rent control homes’ which he hopes will be built in their thousands cross the capital. 

Khan – who has agitated for some years to be given powers to control private rents in London – says his initiative could save key workers up to £600 a month on their rent and provide “a new, simpler rent-setting model for developers to deliver thousands of these homes across the capital.”

In his 2024 Mayoral election manifesto, Khan pledged to introduce a new form of rent control homes with rents capped and linked to the incomes of key workers.

He has now stated that he will work with partners to begin building these homes, with the aim to start at least 6,000 by 2030.

Khan claims that at present 24% of private renting households in London spend over half of their gross household income on housing costs and 21% of London’s private renters said they were struggling to make ends meet, going without meeting their basic needs or relying on debt to do so. Another 40% report that they were just about managing. 

The new properties envisaged by Khan will be primarily targeted at London’s key workers and therefore referred to formally as Key Worker Living Rent (KWLR) homes. 

Khan aims to link rents directly to key workers’ incomes. He is proposing rents based on 40 per cent of their 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. 

He has launched a consultation on his new proposals and says he is particularly keen to hear from key workers and organisations that employ and represent them, as well as from developers and providers of affordable and market housing. 

He says: “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.” 

He has been backed by Ben Twomey, chief executive of Generation Rent, who says: “While the cost of renting crisis continues to rage across the capital, it is welcome that the Mayor of London is looking at new ways to protect people from soaring rents.

“We rely on key workers for our communities to function. They build our homes, look after our health and educate our children, so everyone benefits when they can afford to live near their workplaces. Generation Rent encourages tenants and key workers to have their say on these new proposals.”