Autumn Budget 2026: what it means for first-time buyers and homeowners
Chancellor John Healey delivered his first Budget today. There was no big surprise for the property market, but there are a few announcements worth knowing about if you’re buying, selling or already own.
Autumn Budget 2026: what it means for first-time buyers and homeownersChancellor John Healey delivered his first Budget today. There was no big surprise for the property market, but there are a few announcements worth knowing about if you're buying, selling or already own.
The headline: no Stamp Duty changes
Hopes of Stamp Duty cuts or reforms were dashed. If you were waiting for the cost of moving to fall, nothing announced today changes that.
For first-time buyers
Your First Home. The scheme launches in Spring 2027. It supports a 2.5% deposit through a government equity loan to buy a new-build home, backed by £4.7 billion of funding. The loan is worth up to 20% of the property's value and was initially described as interest-free, though how long that period lasts had not been confirmed. The main limits are:
- Income: household income caps of £110,000 outside London and £140,000 inside London.
- Price: caps based on local median prices, with £650,000 for inner London and £500,000 for outer London.
- Where: it's for England only and won't extend to Wales.
A new First Time Buyer ISA. It arrives in April 2029, keeping the Lifetime ISA's £4,000 annual limit and 25% government bonus, with no withdrawal charge for a qualifying first home up to £450,000 and no upper age limit. In the meantime, the Lifetime ISA withdrawal charge drops to 20% from 29 October for people buying above the £450,000 cap, with their own contributions protected. That helps savers buying in higher-priced areas like ours.
For existing homeowners
There's little here for most owners. The one direct hit is at the top end: the High Value Council Tax Surcharge on homes worth £2 million and above is going ahead, with first bills due in March 2028. It comes with a deferral scheme, discounts and exemptions, and a 100% premium on homes left empty for 12 months or more.
Landlords face a harder time. Income tax on rental income rises by a further two percentage points from April 2027, taking rates to 24%, 44% and 49%. Accountants warn this could push some landlords to sell and reduce the supply of rental homes.
So, does it help?
First-time buyers: partly. Your First Home is a real boost for some people, but it has limits:
- New-builds only: Zoopla estimates over a third of new homes would qualify and that up to 30,000 buyers a year, about one in ten, could benefit. It also expects the scheme to have about half the impact of the old Help to Buy.
- Price inflation: some experts warn that tying support to new builds risks repeating Help to Buy's price-inflating problems.
- Negative equity: one broker has warned that a 2.5% deposit could leave some buyers in negative equity for years.
- London: the HomeOwners Alliance questions whether it does enough in London, since the old scheme offered up to 40% there against 20% now.
What this means locally. Most homes in Golders Green and Hampstead Garden Suburb are existing properties, not new-builds, and many sit above the £500,000 outer-London cap. So Your First Home is unlikely to be the route for many local buyers. The ISA changes may be more relevant, as may saving a bigger deposit the traditional way.
Homeowners: mostly business as usual. Unless your home is worth £2 million or more, today changes little. Some of our area's larger properties may be affected by the surcharge, and it's worth understanding the deferral options if so.
Our advice
Don't put your plans on hold for a scheme that doesn't launch until Spring 2027 and may not suit you. The HomeOwners Alliance says buyers should explore all their options rather than assume they must wait. A broker can explain the choices, and we're happy to talk through what's realistic for you.
This is general information, not financial or tax advice. Speak to a qualified adviser about your circumstances.
