The Labour Party is pledging to introduce a ‘living rent’ for tenants that will be at one third of the area's local average income.
This will make the homes dearer than renting social housing but cheaper than renting from a private landlord.
The announcement comes as Labour says it will build one million affordable homes over 10 years for people to buy at below market levels.
However, as part of its local council election manifesto, Labour says that the new affordable properties which will be available to tenants will be at a social rent that is ‘well below market rate levels’.
The party says that they will use a formula to determine what these living rents will be from property values, property sizes and local incomes.
‘Rents set at no more than a third of the average local household income’
In a statement, Labour says: “Living rent homes will have rents being set that are not more than a third of the area’s local household income. These homes will be aimed at low-income working families, younger people and key workers.”
In their figures, Labour says that for a tenant in Manchester they could be saving £130 per month and enable a couple to save £4,700 more towards buying a home over three years.
They point out that a living rent home in Crawley could be £179 cheaper than the market rate to enable a couple to save £6,500 to buy a home.
BTL investors aged over 50 opt for the south east
Meanwhile, it's been revealed that the top buy to let investment location in the UK for those aged over 50 is the south east.
The findings from Commercial Trust reveal that these investor numbers are growing and 38% of all completed BTL purchases between 2015 and 2017 came from those aged over 50 either in London or the south east.
When the average for this period is analysed, investment by the over 50s in the south east is slightly ahead of the capital.
Most popular area for buy to let investment
The third most popular area for buy to let investment is East Anglia with 12% and then the south west with 11%.
According to recent research from Retirement Advantage, they found that 10% of those aged over 50 are more likely to invest in property once they retire.
One reason for this is down to greater pension freedoms along with the unpredictability of annuity rates, that's the amount a pension provider will pay every month.
Also, growing numbers of lenders will accept pension income as a source for affordability which is helping to boost interest in investment from retirees.
