Councils take legal advice over affordable rent decision by London Mayor

A group of London boroughs – including Southwark and Islington councils – are taking legal advice over whether a judicial review is possible of a decision by the Mayor of London in relation to affordable rent.

Southwark said it set social rent at around 40% of market rent values. However, the council warned that any new housing built was subject to restrictions set out in the London Plan.

The plan allows developers to charge 80% of the market rent and still call new homes 'affordable' to meet quotas set out in planning applications.

The council claimed that in many parts of its area this could “amount to well over £1,000 a month and far exceeds what is affordable to the majority residents”.

Southwark and other boroughs told a planning inspector appointed to assess the soundness of the Mayor of London's proposals for alterations to the London Plan that the approach was too restrictive and not based on evidence of London's housing needs.

The councils claimed that under the Localism Act, boroughs should be given more flexibility to use their own expertise to decide how best to seek to meet their housing need within their own borough-specific planning policies.

The inspector agreed and suggested that Boris Johnson take the restrictive wording out of the alterations. This would have allowed boroughs to set rent caps or their own criteria for affordable housing if required.

But the Mayor rejected the inspector's suggestion.

Cllr Fiona Colley, Southwark’s cabinet member for regeneration and planning, said: "We are very keen to seek a judicial review of this decision. Councils 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% of market rent are affordable to most people, but they certainly aren't in Southwark. The implication of the Mayor's decision is that councils will have little power to make sure new affordable housing is really, genuinely affordable for local people."

Once the plan has been published, the council will have six weeks to submit an application for a judicial review.