The property industry is calling on Sadiq Khan to change his draft London plan in order to boost the build-to-rent sector.
The British Property Federation, which represents real estate firms, institutional investors and professional services firms, has asked the London mayor to scrap his target for 35 per cent affordable housing on developments for build-to-rent homes.
The property group said that the target works on build-for-sale developments because housebuilders can sell the units as they continue to construct more homes, but build-to-rent developers need to finish construction completely before they can rent out units.
Ian Fletcher, director of real estate policy at the BPF, said: "Although we are supportive of the mayor and believe his plan is excellent in many respects and goes much further than any before, we have growing concerns that on some key aspects there is little evidence to support its policy aspirations.
"Build-to-Rent has the potential to contribute significantly to London’s housing shortfall – and through proactive policy making, successive Mayors have made London a magnet for that investment, particularly in London’s outer boroughs. Setting the wrong threshold may be good politics, but it is not good policy making."