London intermediate rent: scheme offers discounts to young tenants spending more than 45% of pay on housing costs

Working Londoners in rental accommodation spend more than 45 per cent of their monthly income on rent — another sign of the capital’s escalating housing shortage.

The youngest tenants are hit hardest with nearly 70 per cent of renters aged between 16 and 34 forking out more than 40 per cent of their pay packet on rent, according to a new survey.

The research conducted by housing charity Dolphin Living and YouGov reveals a stark awareness gap between affordable home ownership schemes and subsidised rental initiatives.

Of those polled, 70 per cent knew about shared ownership, the part-rent part-buy programme.

However, only 10 per cent had heard of intermediate rent which is available across many London boroughs, a scheme where eligible tenants are offered rental accommodation at a 20 per cent discount.

“Renters spending high proportions of income on rent have a high likelihood of living in housing poverty, meaning they cannot meet their other living costs. Or they compromise their housing needs and live in poor-quality housing,” says Olivia Harris, chief executive of Dolphin Living.

“Without housing that workers can afford, London will be unable to attract and retain the talent it needs to grow and thrive,” she adds.

Want to pay your rent, save for a deposit and have a life? Here are three affordable rental schemes available in London:

Dolphin Living runs an accelerator scheme with Westminster City Council.

The scheme has key workers in mind, but it’s not exclusively for that group.

Londoners working in the borough can qualify for a 65 per cent rental discount in a Dolphin Living block.

After three years the scheme gives the tenant a £54,500 grant towards buying a first home.

London Living Rent has been around for three years and is designed to help low to medium earners.

If you are renting in London with a household income of less than £60,000 you may qualify.

The homes are offered on tenancies of a minimum of three years with the aim to support the tenant to save and buy their own home.

Across London as a whole the average monthly rent for a two-bedroom London Living Rent home is around £1,030 a month, roughly two thirds of market rent. This varies from borough to borough.

To ensure family-sized London Living Rent homes are affordable, the rent for a three-bedroom home will be set at just 10 per cent above the two-bedroom rent.

Contact your local council to find out more.

Dolphin Living has over 500 homes for intermediate rent for London workers who are priced out of central London.

Rents are at a discount of 20 per cent of local market levels.

Generally, your household income must not exceed £90,000 a year and you must not own any property.

As well as Dolphin Living the other landlords who provide discounted rental schemes are Essential Living and Get Living.