Bulk buying rises as more than a third of new London homes fail to sell privately

By the Editorial Team · Monday, June 29, 2026

Over one-third of new homes in London initially meant for private sale were bought in bulk by institutional investors, housing associations, and local authorities last year, reflecting a rise from the previous year’s quarter. This shift highlights growing affordability challenges for buyers and signals a change in how developers manage unsold properties, potentially impacting the government’s housing delivery targets.

More than one-third of new homes in London originally intended for private sale were purchased in bulk last year, marking a significant increase from a quarter the previous year, according to recent analysis. This trend reflects the ongoing affordability challenges facing prospective buyers in the capital and the resulting shift in how developers manage unsold properties.

Data from Molior, a residential development consultancy, reviewed by property firm CBRE, shows that developers are increasingly offloading homes to institutional investors, housing associations, and local authorities through bulk sales. These sales involve transferring multiple completed but unsold units in single transactions, rather than marketing them individually over time. This approach has become more prevalent amid declining demand from owner-occupiers, who are struggling with high prices and rising borrowing costs.

In the 12 months ending in the first quarter of 2026, 58 percent of new homes sold in London were acquired by corporate buyers, up from 52 percent in 2024. This shift comes as London accounted for just 17.2 percent of all UK house sales over the same period, the lowest share since 2006. Additionally, the proportion of new homes sold "off plan" before construction began reached a 12-year low, underscoring weakening speculative demand.

Housing market experts attribute the change in buyer profile and sales patterns to several factors. The impacts of increased interest rates and the discontinuation of the government’s Help to Buy equity loan scheme in 2023 have reduced accessibility for first-time buyers, intensifying the affordability squeeze. For decades, London’s housing market outpaced other regions with rapidly rising prices, but the post-pandemic environment has altered this dynamic.

Jason Hardman, head of UK living at CBRE, noted that despite ongoing interest in living in London, affordability issues have reshaped and redistributed demand. “Any stock that is built is being absorbed, whether it’s by local authorities or registered providers or the for-profit world buying at the bottom of the cycle,” he said.

Joe Marshall, chief investment and development officer at Sovereign Network Group, one of the UK’s largest housing associations, explained that developers facing difficulties selling homes often turn to bulk sales to change the tenure. This can include transitioning properties into private rental units or transferring them to housing associations, which may convert them for shared ownership, social rent, or affordable rent schemes.

The rising reliance on bulk purchases and institutional investors to clear unsold new homes raises questions about the viability of the government’s goal to deliver 1.5 million new homes nationwide, including 88,000 units annually in London. The current market conditions suggest that traditional private sales channels face significant headwinds in meeting these targets ahead of the next general election.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.