City Hall has defended Sadiq Khan’s new intermediate rental product for key workers in the face of sector concerns that it may complicate the intermediate rental market.

The mayor this week published his response to sector feedback on a consultation paper outlining plans to introduce a new Key Worker Living Rent (KWLR). Under the proposed product, rents and service charges would be capped at 40% of average key worker household income after tax by London borough and then be allowed to increase each year in line with inflation.