Prime London Property: Mortgage Cap Scrapped as Super-Rich Rent | Budget 2026

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There was a telling split in the London market this week: it is becoming cheaper to borrow, but dearer to own.

On the lending side, the tide is turning. From 28 October the Bank of England removes the cap on high loan-to-income mortgages, giving lenders room to stretch borrowers further — and HSBC and NatWest both cut their rates in the same week. After years of tightening, credit is loosening.

On the ownership side, the pressure keeps building. Telegraph analysis finds the anticipated “mansion tax” has already wiped an average of £285,000 off homes worth more than £2m since the start of this year — the market pricing in a policy that hasn’t yet arrived. Even the City of London Corporation is weighing tax rises to close a £70m gap, a reminder of how stretched public finances are at every level.

Against that backdrop, it is little surprise that a record number of London’s super-rich would now rather rent than buy. Demand for the finest homes hasn’t weakened — it has simply moved from ownership into tenancy.

Cheaper to borrow, dearer to own — and for buyers with conviction, the hesitation of others is precisely the opening.

To talk through where your own position sits, get in touch at londonproperty.co.uk

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The London Property Podcast Hosted by Farnaz Fazaipour, londonproperty.co.uk

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Every episode cuts through the noise with 30 years of prime London market experience  no estate agent spin, no vested interests. Just practical insight on where the market is moving, what the legislation means for your wealth, and where the real opportunities are.

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