London Living Rent 2026-27: below-market renting in London — the figures, income cap and how it's set

London Living Rent is an intermediate rent scheme set below market levels. The rent is tied not to the market but to the incomes of people in a given area, so figures differ markedly between boroughs and even wards. In January 2026 the Greater London Authority published the benchmarks for 2026-27.

How the rent is set

The base monthly figure is one third of the estimated median gross household income in the borough. It is then adjusted: by flat prices in the specific ward, within ±20%, and by property size, ±10% per bedroom. From January 2026 a cap of £1,750 a month applies — even if the calculation gives more, the rent does not exceed that.

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What it looks like in money

Examples from the Mayor's 2026-27 document: the Southwark borough base is £1,529; in Borough and Bankside the calculation gave £1,835 but, after the cap, £1,750. On Old Kent Road: one-bed £1,101, two-bed £1,223, three-bed £1,345, four-bed £1,468. The lowest ward figure is £919 (two-bed, Beam ward, Barking and Dagenham). These are benchmarks — check the figure for your own borough and ward.

Who it suits

The scheme is aimed at working renters on moderate incomes. The document sets a household income cap of up to £75,000 a year, plus an affordability guide: housing costs should not exceed 40% of net income (taken as about 70% of gross). London Living Rent homes are offered by housing associations; current listings and full conditions are on the Mayor's site, london.gov.uk.

The bottom line: if you rent in London and your household income is within the cap, check the London Living Rent figure for your area — it can be well below the market rate.