Autumn Budget 2026: What It Means for Property

Delivered on 28 October 2026, the Budget focused largely on the cost of living and the public finances. Here is what was announced for buyers, sellers and landlords.

What it means for first-time buyers

The Chancellor confirmed Your First Home, an equity loan scheme for first-time buyers in England who don’t have “the bank of mum and dad” behind them. It applies to new-build homes from participating developers, with buyers putting down a 2.5% deposit and the government lending up to 20% of the price. It will launch next spring, funded with £4.7bn of government-backed lending, and the Treasury says it will help 70,000 people onto the property ladder.

The Chancellor also confirmed that a new First Time Buyer ISA will replace the Lifetime ISA for new savers from April 2029. In the meantime, from 29 October the Lifetime ISA withdrawal charge falls from 25% to 20%, so that first-time buyers purchasing a home above the £450,000 property price cap will not be penalised.

He also reversed the planned cut to the cash ISA allowance, keeping the annual limit at £20,000 rather than reducing it to £12,000 for under-65s from April 2027.

What it means for landlords

From April 2027, tax rates on property and savings income will rise by a further two percentage points across all bands, on top of the rise already scheduled for that date. This takes the rates on property income to 24%, 44% and 49%. There is no change to tax on dividends or employment income.

What it means for homeowners and sellers

The Budget statement contained no changes to stamp duty and no rise in capital gains tax.

In 2027, around 20 million households in council tax bands A to D in England will receive a £100 Household Energy Payment.

Housing supply and local measures

The Budget provides a further £1.5bn for social and affordable housing, taking total capital investment over the next 10 years above £40bn. Smaller housing developments on brownfield land will be exempt from Biodiversity Net Gain requirements, and a further £432m over the next two years will help people sleeping rough off the streets.

The Small Business Rates Relief threshold rises from £12,000 to £18,000, which the Treasury says will take around 70,000 more retail, hospitality and leisure businesses out of business rates. Legislation will also give all Strategic Authorities the power to introduce an Overnight Visitor Levy from 2028.

The economic backdrop

Alongside the Budget, the OBR now expects the economy to grow by 1.2% this year and 1% in 2027, down from its previous forecast of 1.6% for next year.

The Bank Corporation Tax Surcharge will rise from 3% to 6% for 15 months, ending on 31 March 2028.

Key dates

The lower Lifetime ISA withdrawal charge applies from 29 October 2026. The higher bank surcharge runs from 1 January 2027 to 31 March 2028, and the £100 Household Energy Payment will be made in 2027. Your First Home opens next spring, and the higher property income tax rates take effect in April 2027. Strategic Authorities can introduce an Overnight Visitor Levy from 2028, and the First Time Buyer ISA opens to new savers in April 2029.