London Living Rent is an affordable housing scheme that offers eligible Londoners below-market rent while they save towards buying a home. It is aimed at households with a gross annual income of £75,000 or less that cannot currently afford to buy a suitable home in their local area, including through Shared Ownership.
High private rents can make it difficult to put money aside for a deposit. London Living Rent is designed to help by offering a more affordable rent and a possible route towards home ownership.
This guide explains how London Living Rent works, who may be eligible, how rents are calculated and how the scheme compares with Shared Ownership.
You may be eligible for London Living Rent if you:
- live or work in London
- have a gross household income of £75,000 or less
- do not own another residential property
- cannot currently afford to buy a suitable home in your local area, including through Shared Ownership
- are renting or living with family or friends because you are struggling with housing costs
- can afford the rent while saving towards home ownership
Housing providers may also apply local priority and affordability criteria.
What is London Living Rent?
London Living Rent is a type of intermediate affordable housing for eligible Londoners who want to save towards buying a home.
Eligible tenants rent a home at a rate set below the local market rent. London Living Rent homes funded by the Greater London Authority are normally offered with a tenancy of at least three years.
The lower rent is intended to help tenants build savings towards a deposit. Housing providers will normally consider whether an applicant can afford the rent while continuing to save.
Providers are expected to support tenants towards home ownership within ten years. Depending on the property and provider, tenants may be offered the opportunity to buy their current home through Shared Ownership during their tenancy.
This opportunity is not available with every London Living Rent home. Some Build to Rent developments and homes delivered without direct GLA funding may not include the right to buy the property being rented. Check the property information before accepting a tenancy.
How much is London Living Rent and how is it calculated?
Across London, the average benchmark rent for a two-bedroom London Living Rent home let in 2026–27 is around £1,409 per month. The amount for an individual home will depend on its location and number of bedrooms.
Published London Living Rent benchmark amounts include service charges.
The Mayor of London publishes London Living Rent benchmarks for every ward and updates them each year. A provider can charge less than the relevant benchmark, but it must not charge more when starting a new tenancy.
The local income benchmark
The benchmark for a two-bedroom home is broadly based on one-third of the median gross household income for the local area. It is then adjusted to reflect differences between wards and property sizes.
The rent is not based on an individual applicant’s income or the value of one particular property.
Adjustments for different property sizes
The two-bedroom rent is used as the main benchmark for each ward:
- The benchmark for a one-bedroom home is 10% lower than the two-bedroom benchmark.
- The benchmark for a three-bedroom home is no more than 10% higher.
- The benchmark for a four-bedroom home is no more than 20% higher.
Further affordability limits
For homes let in 2026–27, no London Living Rent benchmark can exceed £1,750 per month, including service charges. This is a maximum benchmark rather than a standard rent, and many homes have a lower benchmark.
You can read the Mayor of London’s 2026–27 London Living Rent benchmark methodology for more information about how the figures are calculated.
The rent for an individual London Living Rent home must also be at least 20% below its assessed market rent.
Annual rent increases
For GLA-funded London Living Rent homes, annual rent increases during the tenancy are limited to the rate of Consumer Prices Index inflation.
Who is eligible for London Living Rent?
The Mayor of London sets the main London-wide eligibility conditions. The housing provider will assess each condition in more detail when you apply.
To meet the London-wide eligibility criteria, you must normally:
- Live or work in London.
- Have a maximum gross household income of £75,000 a year.
- Not own another residential property in the UK or abroad.
- Be unable to buy a suitable home, including through Shared Ownership, in your local area.
- Have a formal tenancy or be living with family or friends because you are struggling with housing costs.
- Be able to afford the rent while building savings towards buying a home.
The affordability assessment may cover your income, regular spending, financial commitments and ability to save.
Local authorities and housing providers may apply extra priority criteria during the first three months that a property is marketed. If more than one eligible household applies, priority may be decided through a local intermediate housing list, a priority group named by the borough or, as a last resort, on a first-come, first-served basis.
Check the property listing before applying, as local priorities and application processes can differ.
London Living Rent or Shared Ownership?
London Living Rent and Shared Ownership can both support eligible customers towards home ownership, but they work in different ways.
How London Living Rent works
- Tenure: You rent the property rather than buying it immediately.
- Deposit: You do not need a mortgage deposit when beginning the tenancy. The provider will explain whether a tenancy deposit or other payment is required.
- Monthly payments: You pay rent based on the relevant London Living Rent benchmark.
- Ownership: You remain a tenant until you buy a home.
- Building equity: You do not build equity while renting. The lower rent is intended to help you save towards a future purchase.
- Repairs and maintenance: Your responsibilities will be set out in your tenancy agreement.
- Buying the home: You may be offered the opportunity to buy through Shared Ownership, depending on the property and provider.
- Availability: You can only apply for properties offered through the London Living Rent scheme.
How Shared Ownership works
- Tenure: You buy an initial share of a home and pay rent on the share you do not own.
- Deposit: You will usually need a mortgage deposit based on the value of the share you are buying, as well as money for legal fees and other purchasing costs.
- Monthly payments: You will usually pay a mortgage, rent on the share you do not own and any applicable service charge.
- Ownership: You own the share of the property that you purchase.
- Building equity: You build equity in the share you own, although property values can go down as well as up.
- Repairs and ongoing costs: You will usually be responsible for the costs set out in your lease. These may include service charges, repairs and maintenance costs, even if you own only part of the home.
- Buying more: You may be able to buy further shares through a process known as staircasing.
- Availability: You can apply where Shared Ownership homes are available and you meet the eligibility and affordability criteria.
London Living Rent may suit you if you cannot currently afford to buy and need time to build a deposit. Shared Ownership may be an option if you are ready to buy an affordable share now.
Costs vary between homes. Before deciding, review the rent, mortgage payments, service charge, deposit, legal fees, repairs and other ongoing costs associated with each option.
If you are ready to buy an affordable share, explore Shared Ownership homes in London.
Which option could suit you?
London Living Rent may be worth considering if you cannot afford to buy locally yet and need time to save towards a deposit.
Shared Ownership may be an option if you can afford to buy a share now and cover the mortgage, rent, service charge and other property-related costs.
Both options are subject to eligibility, affordability and property availability.
Benefits and limitations of London Living Rent
Potential benefits
- Below-market rent: The rent must meet the relevant London Living Rent benchmark and be at least 20% below the home’s assessed market rent.
- Time to build savings: Lower rent may make it easier to save towards a deposit, depending on your income and other expenses.
- Greater stability: GLA-funded London Living Rent homes are normally offered with a tenancy of at least three years.
- A possible route to buying: Some properties offer tenants the opportunity to buy through Shared Ownership.
- Controlled rent increases: Annual increases during relevant tenancies are limited to CPI inflation.
Points to consider
- It is not immediate home ownership: You remain a tenant until you buy a home.
- You will need to save: Providers will consider whether you can afford the rent while building savings towards a future purchase.
- Availability is restricted: You can only apply when suitable London Living Rent properties are being advertised.
- Local priorities may apply: Some providers may initially give priority to particular groups or people connected to the borough.
- Purchase options vary: Check whether the home can be bought and what happens at the end of the tenancy.
How to find and apply for a London Living Rent home
Guinness Homes does not currently offer homes through London Living Rent. You can search for properties offered by other housing providers through the Mayor of London’s Homes for Londoners portal.
Step 1: Search Homes for Londoners
Visit the Homes for Londoners property portal to check your eligibility and search for available London Living Rent homes.
Step 2: Review the property criteria
Read the full property listing before applying. Check the household income limit, any minimum income requirement, household size criteria, local priorities, tenancy terms and purchase options.
Do not rely on the general London-wide criteria alone. A property may have local priority rules, minimum income requirements or household-size conditions that affect whether you can apply.
Step 3: Apply to the housing provider
The listing will explain how to register your interest. Depending on the property, you may need to apply directly to the housing association, council or developer managing the home.
Step 4: Prepare your documents
The provider will tell you which evidence it needs. This may include:
- Recent payslips or evidence of other income.
- Recent bank statements.
- Your latest P60, if applicable.
- Proof of your current address.
- Evidence that you live or work in London.
- Identification, such as a passport or driving licence.
- Information about debts and regular financial commitments.
- Evidence of your current tenancy or housing arrangements.
The documents and time periods required can vary, so follow the instructions for the property.
Step 5: Complete the affordability and eligibility checks
If your application progresses, the provider will check whether you meet the eligibility criteria and can afford the rent while continuing to save towards home ownership.
Meeting the London-wide eligibility criteria does not guarantee that you will be offered a home. Demand, local priorities and the number of available properties may affect the outcome.
Frequently asked questions
How do I find the London Living Rent amount for my area?
London Living Rent benchmarks are published for each London ward and property size. Check the latest London Living Rent benchmark information from the Mayor of London.
The benchmark is a maximum amount rather than a guarantee of the rent you will pay. Check the individual property listing for the rent and service charges that apply to the home.
What happens if my household income rises above £75,000?
The £75,000 household income limit normally applies when your eligibility is assessed. Your tenancy agreement and the provider’s policies will explain whether you need to report later changes in your income or circumstances.
Contact your provider for advice if your circumstances change during the tenancy.
Can I buy the London Living Rent home?
You may be able to buy your London Living Rent home through Shared Ownership before ten years have passed, but this is not guaranteed. The option depends on the property, its funding and the provider’s arrangements. Any purchase will also be subject to eligibility, affordability and the applicable terms.
Some Build to Rent providers retain long-term ownership of their properties. Homes delivered without direct GLA funding may also have different arrangements. Check the purchase options before accepting the tenancy.
Does Guinness Homes offer London Living Rent?
Guinness Homes does not currently have homes available through London Living Rent. We offer Shared Ownership homes in London for eligible customers who may be ready to buy an affordable share of a home.
Can I apply if I receive housing-related benefits?
Receiving benefits is not listed as an automatic London-wide exclusion from the scheme. The provider will assess your household income and whether you can afford the rent while building savings.
If you receive housing-related benefits, ask the provider how these payments will be treated during its affordability assessment. You may also wish to seek independent benefits and financial advice before making a decision.
Can I apply if I currently own a home?
You must not own another residential property when you take up a London Living Rent home.
If you own a property and are selling it, ask the provider whether you can apply and when the sale must be completed. Confirm the requirements and timescales before making any commitments.
Is London Living Rent the same as Rent to Buy?
London Living Rent follows a similar principle because tenants pay below-market rent while preparing for home ownership. It is a specific affordable housing product for eligible Londoners, with rents based on GLA benchmarks and a route that may lead to Shared Ownership.
Ready to explore your home ownership options?
If London Living Rent is not available in your preferred area, Shared Ownership may offer another way to buy a home in London.
With Shared Ownership, you buy an affordable share of a property and pay rent on the part you do not own. You may also need to pay a service charge and other property-related costs. Eligibility, affordability and availability criteria apply.
View available Shared Ownership homes in London
Important information
This guide is based on the Mayor of London’s London Living Rent guidance and 2026–27 London Living Rent benchmark methodology.
London Living Rent rules, income limits, benchmark rents and available properties can change. Before applying, check the Mayor of London’s current London Living Rent guidance and review the individual property listing.
Confirm the rent, service charges, eligibility criteria, tenancy terms and purchase options directly with the housing provider before making any financial or housing decisions.
Published by: Guinness Homes
Last reviewed: August 2026
