Hackney Council sets up own housing company so it can offer ‘living rent’ homes

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.