London Daily

Focus on the big picture.
Saturday, Sep 19, 2026

No 10 considers 50-year mortgages that could pass down generations

No 10 considers 50-year mortgages that could pass down generations

Cautious welcome for idea to tackle housing crisis but experts warn of risks to those inheriting

Downing Street is exploring the idea of trying to tackle the housing crisis with ultra-long mortgages of up to 50 years that could pass between generations, allowing more people to build up equity rather than pay rent.

Mortgage experts said the idea could bring some benefits but flagged problems, including the potential to saddle children with debt, and the fact it would not tackle the fundamental issue of housing supply.

Under the plan being examined by No 10, a longer mortgage period would allow people to borrow larger sums, with the possibility of passing the debt on, although it remains unclear what government action would make this happen.

Other housing ideas being considered by Downing Street include trying to free up government-owned land for rapid homebuilding, and exploring whether institutions such as schools could build homes for key workers priced out of local areas.

Boris Johnson, speaking to reporters during his trip to the Nato summit in Madrid this week, confirmed that the idea of 50-year mortgages was being looked at, saying the government “wants to find all sorts of creative ways to help people into ownership”.

He said: “Last year we had 400,000 first-time buyers. That’s a great number, we’re starting to turn the tide, but it is crucial for this government and for our overall economic story if those numbers continue to be strong.

“We need young people to have the confidence, to have the deposits, the mortgage packages to be able to get into ownership. If you’re good enough to pay a lot in rent, we should find ways to help you to convert that into a mortgage.”

Asked if he was considering ultra-long mortgages, he replied: “Yes, certainly.”

The idea of multi-decade mortgages being transferred between generations is not new and has been pioneered in Japan, where 100-year family mortgages have been offered for some time.

In the UK, relatively long mortgages are already the most common. According to the Building Societies Association, 37% of first-time buyers took out mortgages of between 30 and 35 years, with only 10% opting for less than 20 years.

The key challenge is the decades-long acceleration of home prices beyond growth in pay. In England, people in full-time work now need to spend an average of 9.1 times their annual earnings to buy a home.

Longer-term mortgages would mean people could borrow greater sums with the same monthly mortgage repayment, potentially opening up many more homes to those currently unable to buy, who might end up spending less money on repayments than they do currently on rent.

What these mortgages would not do, however, is solve the long-term shortfall in housebuilding.

Graham Taylor, the managing director of the mortgage firm Hudson Rose, said the idea had complexities. “On the face of it, it seems like a great idea,” he said. “But the problem remains that the loan would need to be affordable for all the original applicants and also the children who inherit it. Otherwise, the children could risk inheriting a liability they are unable to manage, which, when secured against your home, has catastrophic consequences.”

Other potential complications include that when a property is passed on to children, inheritance tax could be liable, and the prospect of people having to maintain payments into retirement.

Rob Gill, the managing director of Altura Mortgage Finance, said that if the plan did open up the market to more first-time buyers, this would have the effect of keeping property prices artificially high. “It seems governments the world over will do anything to avoid the alternative of property prices actually falling,” he said.

Newsletter

Related Articles

0:00
0:00
Close
Addison Lee Founder Loses £20.5 Million Non-Domicile Tax Case
BrewDog Creditors Face Heavy Losses After Collapse
Thirteenth Metropolitan Police Officer Dismissed Over Charing Cross Conduct
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Accommodation Plan
NHS Approves Life-Extending Treatment for Women With Incurable Breast Cancer
Software Defect Blamed for Major UK Air Traffic Disruption
Twenty Women Underwent Unnecessary Mastectomies at County Durham NHS Trust
British Steel Costs Taxpayers £1.3 Million a Day as MPs Demand Long-Term Plan
UK Parliament Advances Sovereign Grant Reform Setting Royal Funding at £99.9 Million
King Charles Urges Human-Centred Approach to Artificial Intelligence at Scotland Summit
House of Lords Begins Scrutiny of Voting-Age and Political Finance Reforms
UK Labour Market Shows Growing Divide Between Younger and Older Workers
Nearly Seven in 10 UK Small Businesses Delay or Cancel Growth Plans as Costs Rise
Andy Burnham Reaffirms UK Net-Zero Target Amid North Sea Energy Debate
UK Parliament Demands Credible Financial and Decarbonisation Plan for British Steel
MPs Urge Government to Reject Thames Water Rescue Deal and Prepare Special Administration
Bank of England Holds Rate at 3.75% as Energy Shock Raises Inflation Risks
TUC Calls for Social Energy Tariff Funded by Higher Taxes on Bank Profits
UK Parliament Enters Conference Recess After Advancing Sovereign Grant Legislation
King Charles Hosts Artificial Intelligence Leaders at Dumfries House Summit
Nearly Seven in Ten UK Small Businesses Delay or Cancel Growth Plans as Costs Rise
Anthropic Details Malicious Use of Claude in Cyber, Weapons and Influence Operations
McLaren Announces £500 Million UK Investment and 1,000 New Jobs
Scotland and Wales Sign Cardiff Agreement to Deepen Cooperation on Shared Policy Priorities
UK Government Moves to Fully Fund Teacher Pay Award as Strike Threat Recedes
UK Competition Regulator Deepens Scrutiny of Microsoft’s Business Software and AI Market Position
NHS England Reforms Focus on Cutting Waiting Lists and Improving Digital Care
England Maintains Mandatory Housing Targets in Push for 1.5 Million New Homes
UK Government Plans Statutory Industrial Strategy Council to Strengthen Long-Term Economic Policy
Asthma Charity Warns of Major Gaps in Childhood Diagnostic Testing Across England
TUC Chief Paul Nowak Appointed to Bank of England Court
Bristol Opens £35 Million Deep-Tech Innovation Hub at Temple Quarter
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Housing Plan
Andy Burnham Deepens UK Defense and AI Cooperation With NATO and Canada
UK Government Announces Neonatal Safety Reforms After Thirlwall Inquiry
Bank of England Weighs Rate Decision as UK Inflation Rises to 3.1%
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
×