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Sadiq Khan Housing Crisis Update Fair rental prices

Sadiq Khan Labour MP and London Mayor candidate 2016 said: ‘The cost of rent for most Londoners is unaffordable – forget the cost of buying. More and more Londoners are spending half of their wages on rent, so they’ve got no chance to save a deposit to buy a property. I want to change the way housing works in London.

‘There’s a choice between a mayor that’s going to have business as usual – or a mayor that’s going to challenge developers and have genuinely affordable homes in London – to rent and to buy.

‘I’m going to say to developers – from now on, at least half of all new homes should be genuinely affordable. Either with a social rent, or with a London living rent and for first time buyers.

‘Social rent will be a formula – roughly speaking it will be £120 a week, for those who are lower on the pay scale.

‘London living rent, which will be a third of average earnings in the area. E.g. In Lewisham it’s £2,000, so London living rent would be about £600 per month.’

No to rogue landlords

‘We should name and shame bad landlords. The mayor of New York – Bill de Blasio – has a scheme where he praises good landlords and names bad ones. Some parts of London I’d have a licensing scheme, so landlords would be vetted by local authorities.

‘Last year around 60,000 Londoners left London, to start a family, buy a property. That’s the highest number since records began and it’s a problem for the capital.

‘I’m also going to set up a not for profit letting agency across London. I’d say to landlords give me your home for three years and I’ll give you six months’ rent up front and take care of all the checks landlords usually have to do.

‘And to tenants, I’d say you can sign a three-year tenancy and the rent is only going to go up by inflation. So you know you’ve got a property for three-years, less if you want, plus you know that the rent will be affordable. That should drive down the cost of housing in London.’

A chance to actually get on the property ladder

house prices

‘As a parent I’m worried about my children’s ability to buy a property in London because unless you’ve got bank of mum and dad, you’ve got no chance.

‘My worry is that London is being hollowed out – it’s going to end up that only the rich live in the city and the less well-off have to leave.

The Labour candidate added: ‘I’ll make sure there are affordable homes with rent to buy schemes. I want to make sure there is a real pick and mix for Londoners. At the moment developers build the homes they want and they tend to be bought by investors overseas.

‘I have nothing against foreigners, but it’s not right they’re getting first dibs on our homes – that should go to Londoners.’

Wi-Fi on public transport

‘In Brighton they’ve already got Wi-Fi on buses and some of our Tube stations are covered – so there’s no reason why we couldn’t. When you go on holiday, especially in Europe, there’s free Wi-Fi in public spaces – why haven’t we in London?

‘We should be working with the private sector to provide it.’

Cheaper and more reliable transport tube

Khan told us he wants to introduce a new scheme where you won’t be financially penalised for changing lines or buses. For example, if you have to hop on a connecting bus or Tube you will only pay for one journey, as long as it’s within an hour.

Adding: ‘In the time it’s taken London to get one cross rail, Paris has had five. We need to think about infrastructure going forward.

‘It’s a big issue for businesses, a big issue for Londoners. People getting from home to work. Our Tubes are the most expensive in the world – they’ve gone up in the last seven years since Boris Johnson’s been mayor.

‘In my first term as mayor we’re going to freeze Tube, Overground and DLR fares and announce a cut in bus fares.

‘You don’t pay again and again, you just check in once with your Oyster. So basically you just pay once within an hour. This should help those in outer London.’

And those of you who are sick of sweating it out on the Central Line will be pleased to hear his plans for a crossrail.

Khan told us: ‘We’re also going to invest in public transport. We want two crossrails – one from east to west and another north to south. It will speed up connections. We’re also thinking about extending tram services and the Bakerloo Line.’

Further Reading

Zac Goldsmith: housing crisis number one priority in London – what needs to be done

What Jeremy Corbyn's leadership victory may mean for housing policy in the UK

Marie's Question >Jeremy Corbyn The New Labour Leader takes his seat in the Houses of Parliament

Building Markets for the Good of People > BoE Open Forum

Bank of England concerns over Property buy-to-let boom

Government ministers and housing association leaders have negotiated a deal to extend the right-to-buy policy

Historic Housing and Planning Bill will transform generation rent into generation buy 

How low can you go ? speech by Andy Haldane BoE Chief Economist

Three Truths about Finance - Governor of BoE - Mark Carney

Mortgage Lenders and Administrators statistics Bank of England Sept 2015

Osborne says tougher buy-to-let regulation on its way

House Prices will continue to rise & construction of more not the answer

Right To Buy Homes Urgent Parliament questions with Brandon Lewis UK housing Minster 
Borrowing figures in the mortgage market remain strong as customers take advantage of record low interest rates

property eCommerce is booming !

Residential sales Move up despite lack of property Stock

Government ministers and housing association leaders have negotiated a deal to extend the right-to-buy policy