Budget 2026: What the latest announcements mean for homebuyers and sellers

From new support for first-time buyers to changes affecting higher-value homes, here’s our guide to the key property announcements in the Chancellor’s Autumn Budget.

The Chancellor’s Autumn Budget has brought several announcements with implications for the UK housing market, including new support for first-time buyers, changes to the tax treatment of rental income and further details of the forthcoming High Value Council Tax Surcharge.

For anyone considering a move, the important question is what these changes could mean in practice. Here’s our summary of the key points.

A helping hand for first-time buyers

One of the headline announcements is the confirmation of the Government’s new Your First Home scheme, backed by £4.7 billion in funding and designed to help around 70,000 first-time buyers onto the property ladder.

The scheme will offer eligible buyers a government equity loan of up to 20% of the purchase price, with a minimum deposit of 2.5% and a repayment mortgage from a participating lender. The loan will be interest-free for the first five years, with interest charges increasing thereafter.

Income and property-price limits will apply, and the scheme is expected to support the delivery of around 20,000 new homes. Pre-registration is planned for the end of 2026, with applications opening in February 2027 and the first loans expected from April 2027.

For first-time buyers who have been finding it difficult to save a substantial deposit, this could offer another route towards homeownership. It may also create additional opportunities for sellers whose properties fall within the scheme’s eligibility criteria.

As always, buyers will need to understand the full terms and long-term costs before committing.

A new ISA to help save for a first home

The Government has also confirmed plans for a new First Time Buyer ISA, due to launch in April 2029 and replace the Lifetime ISA for new savers.

The new account will retain a 25% government bonus, with contributions of up to £4,000 a year and a qualifying first-home purchase price limit of £450,000. The maximum government bonus will be £20,000.

Existing Lifetime ISA holders will be able to continue using their accounts under the current rules. From 29 October 2026, the withdrawal charge will also be reduced from 25% to 20% for existing holders buying a qualifying first home above the £450,000 price limit.

While the new ISA is some years away, the announcement reinforces the importance of helping aspiring homeowners build a deposit and plan ahead.

What about the mansion tax?

The Budget has confirmed further details of the High Value Council Tax Surcharge, commonly known as the mansion tax, which is due to come into effect in England from April 2028.

The charge will apply to properties valued at £2 million or more, with annual charges ranging from £2,500 to £7,500 depending on the property’s value. The Government has also confirmed plans for deferrals, discounts and exemptions, alongside an additional charge for properties left empty and unoccupied for 12 months or more.

For homeowners in the higher-value market, this is an important future consideration when planning a sale, purchase or long-term property strategy.

However, the announcement does not mean that every property will be affected, nor does it automatically determine how values or buyer demand will respond. Individual circumstances and local market conditions will matter.

If you’re considering selling a higher-value property, understanding your home’s current market position and the details of the forthcoming rules will be particularly important.

What does the Budget mean for landlords and renters?

The Budget also brings a change to the taxation of rental income. From April 2027, income tax rates on property income will rise by two percentage points.

This may affect the net returns of some landlords, depending on their individual circumstances. Landlords will want to review their figures and take appropriate professional tax advice as the changes approach.

For renters, the effect is less straightforward. The additional tax burden falls on landlords, rather than being a direct tax on tenants, and any effect on rents will depend on wider local market conditions, including the balance between supply and demand.

The Government has also committed additional funding to social and affordable housing, which should be viewed as part of the wider picture of housing availability.

The bigger picture: what does this mean if you’re planning a move?

The Budget introduces some important changes, but it doesn’t remove the fundamentals that drive the housing market.

Buyers still need to find a property that meets their needs and budget. Sellers still need to price their homes realistically, present them well and reach the right audience. And the success of any move will depend on individual circumstances, local demand and the opportunities available.

For first-time buyers, the forthcoming support schemes may create new possibilities. For sellers, a well-prepared property, an informed pricing strategy and effective marketing remain essential.

At Mansell McTaggart, we understand that moving home is about more than the headlines. It’s about making the right decision for your next chapter.

Thinking about moving? Our local teams are here to help you understand your property’s current market position and explore your options.

Contact your local Mansell McTaggart branch to arrange a valuation or discuss your next move.

The information in this article summarises Budget announcements as published on 28 October 2026. Government schemes and tax measures are subject to their detailed rules and implementation. This article is for general information only and is not financial or tax advice.