The proportion of newly built homes in London purchased by British buyers has collapsed to just one-fifth, down from nearly half a year ago, as corporate investors and investment funds increasingly dominate the market. This shift represents a fundamental disruption to the property development model, as individual buy-to-let investors—who historically provided essential pre-sales financing for new projects—have largely withdrawn from the market due to higher taxes, stricter regulations and increased borrowing costs. The change is symptomatic of broader pressures on the UK rental market and is now reshaping London's property landscape.

The latest figures show that in the quarter to June 2026, British buyers purchased 589 of the 2,792 new homes sold in London, compared with 826 out of 1,674 a year earlier. Corporate purchases have surged dramatically from 28 per cent to 69 per cent of sales, whilst foreign buyer purchases have fallen from 23 per cent to 10 per cent. The shift has created a glut of second-hand properties, particularly in areas like Canary Wharf where roughly 1,000 new-build flats are on the market; many landlords are selling properties bought five to fifteen years ago at around 20 per cent below new-build prices, further suppressing the market and deterring new development.