What does the Autumn Budget 2026 mean for property?

Chancellor John Healey delivered the Autumn Budget on 28 October 2026. Stamp duty hasn’t changed, but there’s news for first-time buyers, landlords and owners of high-value homes. Here’s what was announced and what it means for you.

This page reflects the Budget announcements on 28 October 2026. Some details are still to be published, and we’ll update this page as they are.

Author: The Setfords Team | Last updated: 29 October 2026 | Read time: 12 minutes

Please note: Most figures in this article are from the Budget 2026 document and gov.uk. Setfords is not responsible for any inaccuracies in those figures.

Key takeaways 

• Stamp duty hasn’t changed. The current rates and first-time buyer relief still apply.
• The High Value Council Tax Surcharge (commonly called the mansion tax) goes ahead for homes worth £2 million or more, and the threshold hasn’t been lowered. The Government also plans a deferral scheme, discounts and exemptions.
• Your First Home has been confirmed: first-time buyers of new builds in England can buy with a deposit between 2.5% and 15% and a 20% equity loan that’s interest-free for five years. Pre-registration opens by the end of December 2026, with the first loans from April 2027.
• A new First Time Buyer ISA will replace the Lifetime ISA for new savers from April 2029. From 29 October 2026, the Lifetime ISA withdrawal charge falls to 20% if you buy a first home above £450,000.
• Landlords face a further rise in tax on property income from April 2027, taking rates to 24%, 44% and 49%.
• Most changes don’t start immediately, so there’s rarely a need to rush a purchase or sale. Your conveyancer can check how any change affects you.

The short answer 

Chancellor John Healey delivered the Autumn Budget on Wednesday 28 October 2026. As the Prime Minister had promised, stamp duty wasn’t changed or scrapped.

The biggest announcements for property were the full rules for Your First Home, a new First Time Buyer ISA, and a further rise in tax on rental income for landlords. The mansion tax goes ahead as planned, with no change to its £2 million threshold.

Most changes start later: higher property income tax rates and the first Your First Home loans from April 2027, the mansion tax from April 2028, and the First Time Buyer ISA from April 2029.

Key numbers:

What changed, timing, and first-time buyers

What changed at the Budget, and what didn’t?

Here’s where each property measure stands after the Autumn Budget:

Figures from the Budget 2026 document.

What happens after Budget day?

The Budget documents and the Office for Budget Responsibility’s forecast were published on gov.uk on 28 October. Many measures need legislation before they take effect, and some details will follow in the coming months. We’ll update this page as they’re published.

Should I buy or sell now the Budget has been announced?

For most buyers and sellers, the Budget doesn’t change the timing of a move. Here’s why:

• Stamp duty hasn’t changed. The current rates still apply, whenever you complete.
• The biggest property changes don’t start now. Higher property income tax rates start in April 2027 and the mansion tax in April 2028. Neither depends on when you complete.
• Check start dates and transitional rules. Some measures, like the Lifetime ISA change, apply straight away, but most begin in a later tax year.
• Moving takes time. Sales and purchases typically take several weeks to months, and your chain, lender and the other side set the pace.

Who should think about timing? 

Landlords should factor the higher property income tax rates from April 2027 into any plans to keep, sell or restructure a portfolio. Lifetime ISA holders buying a first home above £450,000 may benefit from the lower withdrawal charge from 29 October 2026. Owners of homes worth around £2 million should plan for the mansion tax from April 2028. In each case, take tax or financial advice on your own situation before you act.

What does the Autumn Budget mean for first-time buyers?

The Budget confirmed the full rules for Your First Home, the equity loan scheme for new-build homes in England first announced on 26 September 2026. The government has committed £4.7 billion to the scheme, which it expects to help around 70,000 households.

You’ll put down a deposit of between 2.5% and 15%, the Government will lend 20% of the price, and a mortgage covers the rest. The loan is interest-free for five years, with a gradual increase after that. In year 6, the interest rate is 1.5%, rising to 3% from year 7. Like the old Help to Buy scheme, it only covers new builds from participating developers.

Household income caps are £110,000 outside London and £140,000 in London. Price caps are based on local authority median prices, set at £650,000 in inner London and £500,000 in outer London with other areas still to be announced. Pre-registration opens by the end of December 2026, full applications from February 2027, and the first loans will be issued from April 2027.

Stamp duty hasn’t changed. Most first-time buyers in England pay nothing on the first £300,000 of the property’s value and 5% on the portion from £300,001 to £500,000. There is no relief above £500,000, and nothing in the Budget changes that. Check the current rates on gov.uk, or read Do first-time buyers pay stamp duty? 

What is the First Time Buyer ISA?

The Budget confirmed that a new First Time Buyer ISA will replace the Lifetime ISA for new savers from April 2029, following the government’s consultation. Unlike the Lifetime ISA, it’s designed only for buying a first home, not for retirement saving.

Based on the Budget announcement:

• You’ll be able to pay in up to £4,000 a year and get a 25% government bonus, up to a maximum bonus of £20,000.
• The bonus can be used towards a first home costing up to £450,000, the same cap as the Lifetime ISA.
• Anyone aged 18 or over can open one, with no upper age limit. Currently, you can only open a Lifetime ISA before you turn 40.
• The government bonus would be paid when you use the money to buy your first home, rather than as you save.
• This means there would be no penalty for withdrawing your money for other reasons. You’d simply lose the bonus.
• An existing Lifetime ISA can’t be transferred into the new account. Existing Lifetime ISAs will carry on under their current terms.

There’s also an immediate change for Lifetime ISA savers. From 29 October 2026, if you use your Lifetime ISA to buy a first home costing more than £450,000, the withdrawal charge falls from 25% to 20%. That means you should get back at least what you paid in, although you won’t keep the bonus.

What’s still to be confirmed for first time buyers?

• Most Your First Home price caps outside London
• Repayment rules and how eligibility will be assessed
• Whether you can use a Lifetime ISA alongside Your First Home

Read our full Your First Home FAQs for what we know so far, or our first-time buyer’s guide to conveyancing. 

What does the Autumn Budget mean for home movers and sellers? 

If you’re selling one home and buying another, stamp duty hasn’t changed. The current rates continue to apply, and our Stamp Duty FAQs explain how they work. 

Your First Home is for first-time buyers of new builds only, so movers can’t use it. Once the first loans are issued from April 2027, it could bring more competition for starter homes near new developments, so price realistically against them when you sell.

If you’re moving into a home worth £2 million or more, the mansion tax matters to you too. See the next section.

What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax is the tax you pay when you buy a property or land in England above certain price thresholds. It’s usually referred to as simply stamp duty.

What does the Autumn Budget mean for homeowners? 

The main issue is the mansion tax, officially the High Value Council Tax Surcharge (HVCTS). The previous Chancellor announced it at the Autumn Budget on 26 November 2025, and the Budget on 28 October 2026 confirmed it will go ahead as planned. Under the current plans:

• It applies to homes in England worth £2 million or more, based on 2026 values.
• It starts in April 2028 and is paid every year on top of council tax.
• There are four bands, from £2,500 a year (for properties worth £2 million-£2.5 million) to £7,500 a year (for properties worth £5 million+).
• The owner pays it, not the occupier.

The Government also said it will introduce:

• A deferral scheme
• A series of discounts and exemptions
• A 100% premium on properties left empty and unoccupied for 12 months or more

Full details of how these will work haven’t been published yet.

Before the Budget, there were reports that the threshold could drop from £2 million to £1.5 million. That didn’t happen, and the threshold stays at £2 million.

The Government had also been considering whether non-UK resident owners should pay an extra charge on top of the mansion tax, following its consultation on how the mansion tax will work, which closed in July 2026. However, nothing on this has been announced yet.

Council tax itself still uses 1991 valuations in England. No wider reform of council tax was announced at the Budget.

Mansion tax could “trigger a wave of disputes over property valuations”.
“For homeowners sitting just above one of the tax thresholds, even a relatively small difference could leave them paying thousands of pounds more every year.”
“With so much money at stake, we can expect some owners to challenge how their properties have been valued, particularly when some of their neighbours have been assessed differently.”
– Victoria Mellon, Head of Conveyancing at Setfords quoted in The Standard

What does the Autumn Budget mean for landlords?

Landlords will pay more tax on rental income from April 2027. The previous Chancellor had already announced that tax rates on property income would rise by 2 percentage points. At the Budget, Healey added a further 2 percentage points, so rates on property income will be 24%, 44% and 49%, depending on your tax band.

Here’s where the other measures that affect landlords stand:

• Capital Gains Tax. Capital Gains Tax (CGT) is the tax on profit when you sell something that has risen in value, such as a rental or second home. Despite calls to bring it closer to income tax rates, no change to CGT rates was announced.
• Holiday lets. Before the Budget, it was reported that holiday lets could be treated as second homes, so they’d pay council tax rather than qualify for small business rates relief. This was not announced.
• Mansion tax. The threshold stays at £2 million. If you own a high-value property that’s left empty for 12 months or more, the new 100% premium could also apply.

When to speak to a solicitor 

If you’re buying, selling or transferring a property, speak to a conveyancing solicitor. They can help you: 

• Understand how any change could affect your purchase, sale or timeline
• Work out your stamp duty position
• Handle the paperwork for Your First Home once it opens
• Prepare for the mansion tax if you’re buying or selling a high-value home
• Handle the legal side of buying, selling or transferring a rental property

At Setfords, you’ll work directly with one expert solicitor from start to finish, so you get their full attention. 

FAQs 

What is the Autumn Budget?

The Autumn Budget is the Chancellor’s yearly statement to Parliament on the Government’s plans for tax and public spending. It often includes measures or changes that can affect property and homeowners.

When was the Autumn Budget 2026? 

Chancellor John Healey delivered the Autumn Budget on Wednesday 28 October 2026. The Office for Budget Responsibility published its forecast the same day. Some measures start straight away, while others begin in a later tax year.

Did stamp duty change in the Autumn Budget 2026? 

No. Stamp duty rates and first-time buyer relief are unchanged, as the Prime Minister had promised before the Budget. Our Stamp Duty FAQs cover the current rates. 

Will the Autumn Budget affect house prices? 

Nobody can say for certain. Prices depend on mortgage rates, wages and the number of homes for sale, as well as tax. A Budget can affect the market indirectly, for example through taxes on buying, owning or selling property. 

Did the mansion tax change in the Autumn Budget? 

Not in the way some reports suggested. The surcharge goes ahead from April 2028 for English homes worth £2 million or more, and the threshold wasn’t lowered to £1.5 million. The Government did announce plans for a deferral scheme, discounts and exemptions. Our mansion tax explainer covers how it works. 

Will overseas buyers pay more tax after the Autumn Budget?

Non-UK residents already pay a 2% stamp duty surcharge when they buy a home in England, on top of any other rates that apply, and that hasn’t changed.

When does Your First Home start? 

Pre-registration opens by the end of December 2026, with full applications from February 2027 and the first loans issued from April 2027. The scheme isn’t open yet.

What is the First Time Buyer ISA?

It’s a new savings account for people buying their first home, which will replace the Lifetime ISA for new savers from April 2029. You’ll be able to pay in up to £4,000 a year and get a 25% government bonus when you use it to buy a first home costing up to £450,000.

How does the Autumn Budget affect landlords? 

Tax rates on property income will rise to 24%, 44% and 49% from April 2027, after the Chancellor added a further 2 percentage points at the Budget. No change to Capital Gains Tax rates was announced.

What happens if the rules change while I’m buying or selling? 

It depends on what changes and when it starts. Some measures apply from Budget day, and others from a later date, and transitional rules sometimes protect deals already under way. Now the Budget documents have been published, your conveyancer can check how any change affects you.

This article is general information about the Autumn Budget 2026 and property and is not legal or tax advice. The law and timescales can change, and every situation is different, so please speak to a qualified conveyancing solicitor, and a tax adviser where relevant, about your circumstances. Most figures in this article are from the Budget 2026 document and gov.uk. Setfords is not responsible for any inaccuracies in those figures.