Four London boroughs are considering bringing a legal challenge to the city’s mayor, Boris Johnson, over property regulation.
Johnson’s London Plan has stated that developers can still use the term ‘affordable rent’ on properties charging rent at up to 80 per cent of market level. However, Southwark currently sets its social rent value at around 40 per cent of market value, leaving a marked difference in council and developer regulation.
Councillor Fiona Colley, cabinet member for regeneration and planning with Southwark, explained the council’s position in conversation with LocalGov: “We are very keen to seek a judicial review of this decision. Councillors need every power possible to ensure rent levels are appropriate and affordable for their residents.
“Maybe there are some areas of London where rent levels of 80 per cent of market rent are affordable to most people, but they certainly aren’t in Southwark.”
Tower Hamlets mayor Lutfur Rahman also criticised the “devastating” decision by the city’s mayor not to allow authorities to decide on their own caps for developers. He told the East London Advertiser: “We too want to maximise the levels of affordable housing being delivered, but our residents simply cannot afford rents of up to 80 per cent of the market rate.
“It’s time Boris Johnson listened to what councils are telling him about the different housing needs in their areas – there’s little point building new homes that local people can’t afford to live in.”
Tower Hamlets currently sets its affordable housing cap at 65 per cent of market rate for one-bedroom flats and 50 per cent for four-bedroom properties.