The Autumn Budget 2026: What does it mean for those thinking about selling or buying?

The Autumn Budget has just been released, and many have a lot to say about it. We want to focus on the specific points that will affect those who are thinking about buying or selling over the winter period.

John Healey delivered the new Labour government's first Autumn budget of Andy Burnham’s premiership. There was some speculation on what it might include, alas dreams of Stamp duty cuts or reforms have been dashed.

Higher tax for landlords

The announcements on tax on rental income has been declared, stating landlords who were already expecting higher taxes come April 2027, will have to pay 4% more on rental income – an extra 2% onto what Rachel Reeves had said previously as Chancellor – meaning they will have to pay rates of 24%, 44% and 49%, variable on their tax band from April next year. This further reform for those renting out properties, means that likely some landlords will choose to offload their money elsewhere. Those looking to find places to rent might in due, find more competition when finding a place, alongside increased rental prices as the market for rentals reduces. There will, of course, always be plenty of landlords still looking to invest in ‘brick and mortar’.

Contrarily, a new market for first-time buyers might become available as Healey confirms that the Your First Home scheme will launch in the spring of 2027.

It can be fair to look at these changes in a positive or negative way: for one, it means that those who cannot afford to invest in a new-build home – even with a loan from government – might struggle to find somewhere to rent; but equally those who currently rent and cannot afford to put a mortgage on a house without the government’s help, might benefit from the Your First Home scheme and be able move on from rental properties and become homeowners.

At this moment in time, it is unclear whether those looking to buy using the scheme, and those currently looking to rent will equal out to create a level rental market again; but one thing that can be said is we will likely see the rates of renting increase.

It isn’t only the landlords that are being hit with higher taxes, Healey gave us a better understanding of the “mansion tax”, or “high value council tax surcharge” that was first announced during last year’s Autumn budget under Rachel Reeves.

High Value Council Tax Surcharge

From March 2028, this annual charge will apply to houses valued over more than £2 million. Those in the bracket of £2 million to £2.5 million will start paying a minimum of £2,500 in council tax, with houses over £5 million paying up to £7,500.

The government had considered charging overseas residents an additional premium for owning high-value UK property. That proposal has now been dropped. Instead, owners of properties worth £2 million or more that are left substantially ‘unfurnished and unoccupied’ for at least 12 months will face an additional 100% premium on their High Value Council Tax Surcharge.

Local councils can already charge higher Council Tax on homes that have been empty and substantially unfurnished for 12 months or more. The government is now applying a similar principle to its new tax on properties worth £2 million or more.

Your First Home scheme

Set to launch in April 2027, the Your First Home scheme aims to make home-ownership more accessible by allowing eligible first-time buyers to purchase a new-build property with a deposit as low as 2.5%. The government will provide an equity loan worth 20% of the property's value, leaving buyers to secure a mortgage for the remaining 77.5%, assuming they contribute the minimum deposit.

The equity loan will be interest-free for the first five years, helping to reduce initial monthly costs. However, the scheme will be subject to eligibility requirements, including a maximum annual household income of £110,000 outside London and local property price limits. Here in Rother, eligible new-build properties must be priced at £390,000 or below. Buyers will also need to consider the longer-term costs of the equity loan, which will begin accruing interest after the initial five-year interest-free period.

Alongside this, a new First Time Buyer ISA is set to launch in April 2029, allowing individuals to save up to £4,000 annually with a 25% government bonus towards a first home worth up to £450,000. Unlike the existing Lifetime ISA, there will be no upper age restriction, and the bonus will be paid when the funds are withdrawn for an eligible property purchase.

Changes to the existing Lifetime ISA have also been introduced. From 29 October 2026, first-time buyers purchasing a property above £450,000 will face a reduced withdrawal charge of 20%, rather than 25%, protecting their original contributions where savings have not fallen in value.

While these measures could offer valuable support to those hoping to get onto the property ladder, mortgage affordability and the availability of suitable homes will remain important factors for buyers, both nationally and here in Rother.

The Bigger Picture

Beyond the individual announcements, the wider impact of the Budget on the property market may depend on how financial markets respond over the coming weeks. Changes in government borrowing costs can influence mortgage rates, which in turn affect how much buyers can afford to borrow and how confident they feel about going ahead with a move.

Looking ahead, the Office for Budget Responsibility (OBR) forecasts that there will be a 2.1% increase in the average house price in 2026, with relatively little change to the longer-term outlook for the years following.

However, the OBR has also revised its projections for property transactions downwards by 4% compared with predictions made earlier this year. It’s important to note that this doesn’t necessarily mean house sales will fall by 4% this year. In fact, the OBR still predicts growth in transactions, from around 1.2 million in 2026 to 1.3 million in 2031. This does suggest though, that growth is now expected to be slower than previously thought, with the possibility of fewer prospective buyers entering the market and longer selling periods.