Council asks residents for their views on intermediate rent scheme

14 December 2017

At the cabinet meeting earlier this week, Southwark Council agreed to ask residents for their thoughts on an intermediate rent scheme in the borough.

Under this proposal ‘Intermediate rent’ will mean that rent is discounted at around half of the private market rent amount for those on incomes below £60,000, and then discounted by a minimum of 20 per cent for those earning over £60,000 - £90,000 per household.

As part of its New Southwark Plan, Southwark Council continues to commit to a minimum of 35 per cent affordable housing. On schemes specifically built for private rent, developers will be allowed to meet the 35 per cent affordable requirement through discount market rent. So 12 per cent would be at social rent levels, 18 per cent at London living rent levels (based on a third of the average income), and 5 per cent would be for those earning over £60-90k per household.

The consultation will ask who should be included as a priority for this new housing. Should this prioritise keyworkers so that teachers, health and social workers, firefighters and police officers can afford to stay in central London near where they work and where they are needed to provide vital services? The council is also proposing special priority for foster carers, carers, those leaving the armed forces and people who need housing following domestic abuse.

Councillor Stephanie Cryan, cabinet member for housing, said: “With the current housing crisis in London it is important that there is a supply of housing, of all tenures, that is truly affordable for our residents who are on low and medium incomes. Key workers in Southwark are finding it especially hard to rent in Southwark due to the increasing prices in the private sector. I hope that by opening up the discussion, we will be one step closer to forming a clear strategy to affordable private housing provision.”

The scheme in Southwark will be in line with the Mayor of London’s commitment to London Living Rent, which helps provide affordable housing for households on incomes under £60,000 per annum. This is just one of several solutions to providing intermediate homes for residents alongside shared ownership, community land trusts and co-operative housing models.

The council wants to hear from our residents about their ideas and views on the future options for intermediate housing in Southwark. This week’s cabinet report recommends a further report to cabinet with the final design in 2018, following the consultation, which will be available online in the new year.

Page last updated: 14 December 2017