The town hall is setting up its own housing company to get around government laws banning councils from offering “living rent” homes.
People struggling to fork out for private rents will benefit under the new scheme, which sees rents set at one third of the average local income – saving up to £10,000 a year.
The average market rent for a two-bed property in the borough is £1,800, but in a living rent home that could be £1,000.
Homes will be acquired from the town hall’s estate regeneration programme and let through a separate company, meaning there will be no “unwarranted fees and charges”.
It forms part of the council’s Better Renting campaign, which has already seen Hackney bring in a voluntary ban on fees.
One third of Hackney’s 34,000 homes are privately rented, while rents have soared by 36 per cent since 2011.
Hackney mayor Phil Glanville said: “These homes will help those struggling to stay in Hackney or save for their first home – putting an extra £800 on average in their pocket every month to save towards a deposit.
People must be renting or working in Hackney, have a household income of less than £60,000 and be unable to buy a home in their local area.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here