Saving for that all-important deposit is becoming more and more of a problem for so many first time buyers who are very keen to get on to the property ladder. But London Living Rent could be the answer to help you eventually buy your first dream home.
Network Homes is passionate about helping first time buyers and is offering London Living Rent at some of its developments, which is the ideal way to save and buy.
HOW IT WORKS
Funded by the Mayor of London, the idea behind London Living Rent is to help people switch from renting to shared ownership. It is designed for people who want to build up their savings to eventually buy a home through shared ownership. London Living Rent offers affordable homes for private rent on shorthold tenancies for three to 10 years.
SIMPLY:
- Find a London Living Rent home that suits you and your needs.
- Rent the home at a discount.
- Save the discount for your deposit.
- Buy shares in your home through shared ownership.
Discounted rental contracts can be renewed, if needed, for up to 10 years after the launch of each scheme, during which time you will be able to gradually build up your deposit.
When you’re ready, you have the option to buy the home you’ve been renting (or another eligible Network Homes property) on a shared ownership basis. The good news is that when you buy is flexible, and Network Homes will support you to save during your rental stay, so you can buy at your own pace.
ANY QUESTIONS?
DO I QUALIFY FOR LONDON LIVING RENT?
To qualify for London Living Rent you must meet the following criteria:
- Your annual household income must not exceed £60,000.
- You must live or work in London.
- You must not own a residential property in the UK or overseas.
- You must meet the minimum income required for your preferred property.
- You must be unable to buy a home, including shared ownership, in the local area.
- You must meet lenders’ general criteria to obtain mortgage finance.
The full eligibility criteria and priority policy for a particular development can be found on the advertised listing.
CAN I MOVE TO AN ALTERNATIVE LONDON LIVING RENT APARTMENT ONCE MY TERM ENDS?
You can’t move to an alternative if you’ve completed the stated London Living Rent term (usually three to 10 years).
MUST I SAVE A MINIMUM AMOUNT EACH MONTH?
You are the best judge of what amount is affordable for you to save each month. By renting through London Living Rent, you benefit from a below-market rent so you will have the ability to save based on the minimum income requirement for your London Living Rent home. The more you save, the quicker you will raise the deposit required to buy your first home.
MUST I DEPOSIT ANY SAVINGS WITH YOU?
No. You will need to deposit and manage your savings with your bank.
HOW SOON AFTER MOVING INTO MY LONDON LIVING RENT APARTMENT CAN I PURCHASE MY FIRST SHARE?
You can buy the first share after six months as long as you have the deposit and income to meet the repayment obligations.
MUST I BUY THE APARTMENT I AM LIVING IN?
No, as a London Living Rent resident, you will be considered a priority applicant (along with other housing association and council tenants) for shared ownership apartments across London.
Case Study
It was a happy ever after story for Hamid Sahil, whose inspiring story will give many first time buyers an incentive to use London Living Rent as a way to buy their dream home.
Hamid Sahil lives with his family in Network Homes’ Acton Works development in Park Royal. He was already a resident of the housing association and moved into his London Living Rent apartment back in October 2021.
London Living Rent is a Greater London Authority scheme that allows people to rent their apartment for a discount and save for a deposit to buy shares in their home on a shared ownership basis. It’s specially designed for middle income Londoners who are struggling to get into the housing market or trapped in expensive private rentals.
Network Homes has been offering homes for London Living Rent since 2018. It was one of the first housing associations to offer the tenure, launching its flagship purpose-built development in Harrow on the Hill. Since then, the organization has delivered 230 homes for London Living Rent with a further 121 under construction.
What’s so great about the scheme is that you don’t have to buy into the home you live in, but you can use it to save in order to purchase elsewhere. So far 12 residents have now purchased, or part-bought, with three buying a share of their current home and nine buying elsewhere. Five sales are currently in the process of going through.
Before discovering London Living Rent, Hamid and his wife were living in a one-bedroom flat, but when she became pregnant, they knew they needed a bigger home for their growing family. Hamid says, “I wasn’t aware of London Living Rent, and I was telling Network Homes staff about my situation and that my wife was expecting a baby and they said there was a scheme that might suit our needs. They were very helpful, giving us a lot of information and navigating us through the website.”
Hamid was impressed by the London Living Rent scheme and the opportunities it provided to pay lower rent, save for a deposit, and make the first steps on the property ladder. So he bit the bullet and completed the application. He said, “One of the biggest reasons that I applied for London Living Rent is that living in London makes it almost impossible to accumulate any type of savings in order to buy your own place. It can be a struggle even to pay your bills, especially with the current cost-of-living crisis and high inflation rate. I think schemes like this are a wonderful opportunity to pay lower rent than you would normally pay in London and at the same time, save that money towards your mortgage or towards buying a place.”
Hamid believes passionately that London Living Rent offers the solution to so many Londoners who are paying high rents in the private rented sector and who might feel homeownership is a distant dream. Particularly as London Living Rent is around 60% of private market rents.
“I think there are a lot of people who are not aware of the London Living Rent scheme who would benefit, like young and medium-sized families. I’d say to them that this scheme is what you want to apply for. This is a life changer. It is almost unreal.”
Location is key, and Hamid was able to find that perfect location with Network Homes’ Acton Works development close to work and great transport links. He added, “It’s very close to where I work which is next door at Central Middlesex Hospital as my job is in pharmaceuticals. So, there’s easy access to work, easy access to central London along with other places. But more importantly, we’ve got a nursery nearby for my little one. Having a two-bedroom apartment is much more spacious and it’s modern. There’s a great community here and our neighbors are wonderful people. I would like to say thank you to Network Homes who have been excellent and given us great service. And finally, wonderful. It’s been a wonderful opportunity.”
Network Homes is offering one, two, and three bedroom homes at Chailey Place, Hayes, in west London for London Living Rent with monthly rent ranging from £915 to £1,118 per calendar month. Find out more at networkhomes.org.uk
