Autumn Budget 2026: What It Means for Buyers and Landlords

The Chancellor delivered the Autumn Budget on 28 October, announcing a number of measures that could affect homeowners, buyers, landlords and tenants.

The main themes are additional support for first-time buyers, investment in affordable housing and a further increase in tax on rental income. Here’s our summary of the key property-related announcements.

New support for first-time buyers

The Government confirmed its new Your First Home scheme, backed by £4.7 billion of funding. It is designed to help around 70,000 first-time buyers purchase a new-build home using a government equity loan of up to 20%, reducing the deposit and mortgage funding they need. The scheme includes an initial five-year interest-free period.

A new First Time Buyer ISA

A new First Time Buyer ISA is planned for April 2029. It will offer a 25% government bonus towards a first home costing up to £450,000, with the bonus capped at £20,000. Existing Lifetime ISA holders will be able to continue using their accounts under the current rules.

Changes to Lifetime ISA withdrawal charges

From 29 October 2026, the withdrawal charge for existing Lifetime ISA holders buying a first home above the £450,000 property price cap will fall from 25% to 20%. This reduces the penalty for those buying a home above the current limit.

A further increase in tax on rental income

One of the most significant announcements for landlords is a further two-percentage-point increase in income tax rates on property income from April 2027.

The announced rates will be:

This is an increase in the tax rates applied to taxable rental income, not a tax on the full rent received. The actual impact will depend on each landlord’s circumstances, so landlords should review their expected returns with an accountant or tax adviser.

The change may influence investment decisions and the future supply of rental properties. However, it is too early to say how much of any additional cost landlords may seek to recover through rents, which will also depend on local demand and affordability.

The Government announced an additional £1.5 billion for social and affordable housing in England, intended to help deliver around 10,000 additional homes. This takes planned investment in the Social and Affordable Homes Programme to more than £40 billion over ten years.

There are also measures intended to make some housing developments on previously developed brownfield land simpler and cheaper to deliver.

These announcements may support housing supply over time, although the effect on the availability and affordability of homes locally will depend on how quickly developments progress.

The Budget also includes support intended to ease pressure on household finances. Eligible households in council tax bands A to D in England are due to receive a £100 Household Energy Payment in 2027, alongside an extension of the temporary VAT cut on electricity bills until July 2027.

Lower household costs could help some buyers and tenants manage their budgets, although the overall effect on the property market will depend on wider economic conditions, mortgage rates and household incomes.

For buyers, the new first-time buyer scheme could create additional opportunities, particularly for those considering a qualifying new-build property. For sellers, buyer demand will continue to depend on affordability, mortgage availability and pricing.

For landlords, the further tax increase makes it increasingly important to understand the costs and returns associated with a rental property. For tenants, the longer-term impact will depend partly on the availability of rental homes and local demand.

Our view: The Budget contains measures that may help some buyers and support future housing supply, but it also adds to the tax burden facing landlords. There is no reason to assume that these announcements alone will cause an immediate change in local house prices or rents.

As always, the property market in Wollaston and the surrounding villages does function somewhat as a a micro-market and will therefore be shaped by local supply and demand, mortgage costs and the circumstances and mood of individual buyers, sellers and landlords.

If you are considering buying, selling, letting or reviewing a property investment, we are happy to discuss the local market and what these announcements may mean for you.

This article is a general summary of selected Budget announcements published on 28 October 2026. It is not financial or tax advice. Individual circumstances and the detailed rules may affect how the measures apply.