28th October 2026
If you are thinking about buying, selling or letting a property, you may be wondering whether today’s Budget changes your plans.
There is new support for some first buyers, higher tax rates on property income from next April and further detail on measures affecting higher value homes. But the headline alone rarely tells you everything you need to know.
The important questions are whether a measure applies to you, when it starts and what it could mean for your circumstances.
At Properly, our focus is on helping you understand your property options and the local market. Financial, mortgage, tax and legal decisions should be discussed with an appropriately qualified professional.
Here are the main housing announcements worth understanding.
First buyers: help with a smaller deposit
The government’s new Your First Home scheme will support eligible first buyers purchasing a qualifying new build home in England.
The announced scheme includes:
- A government equity loan worth 20% of the purchase price.
- A buyer deposit of at least 2.5%.
- An interest free period of five years on the equity loan.
- Household income limits of £110,000 outside London and £140,000 within London.
- Property price limits that vary by location, including £650,000 in inner London and £500,000 in outer London.
Applications are expected to open in February 2027, with the first loans issued from April 2027. Further eligibility guidance is due before applications open, and buyers will still need to satisfy a participating mortgage lender’s requirements.
The scheme applies to qualifying new build homes from participating developers. It does not extend to every home on the market.
The smaller deposit is only one part of the commitment. The equity loan must be repaid, interest becomes payable after the first five years and the repayment amount is linked to the property’s value.
If you are considering this route, ask a qualified mortgage adviser to explain the full costs, future payments and repayment arrangements before deciding whether it suits you.
Read the government’s Your First Home guidance.
Saving for a first home: check which change affects you
A new First Time Buyer Individual Savings Account is due to replace the Lifetime Individual Savings Account for new savers from April 2029.
The announced product will provide a 25% government bonus towards a qualifying first home costing up to £450,000, with the bonus capped at £20,000. Existing Lifetime account holders will be able to continue contributing to and using their accounts under the current rules.
A separate change takes effect from 29th October 2026. The withdrawal charge for an otherwise qualifying first home purchase above the Lifetime account’s £450,000 property price cap will fall from 25% to 20%. Other unauthorised withdrawals will continue to attract a 25% charge.
These measures have different start dates and conditions. Before withdrawing money or changing your savings arrangements, check the rules with your account provider and seek qualified financial advice where needed.
Read the government’s savings announcements.
Will the Budget make mortgages cheaper?
A Budget does not automatically reduce mortgage payments.
The Bank of England sets Bank Rate, while lenders set their mortgage prices using factors including funding costs, competition and the borrower’s circumstances.
For anyone planning a purchase, a current mortgage assessment is a more useful starting point than a prediction about where rates might go.
A qualified mortgage adviser can explain:
- How much you could borrow.
- What the monthly payments would be.
- Which fees and other costs you need to allow for.
- Whether charges or restrictions on an existing mortgage could affect a move.
Having those figures in place can help you approach your property search with a clearer understanding of your budget.
Read how lenders set mortgage rates.
Sellers: keep your attention on the local market
It is too early to say that today’s announcements will increase the value of your home or bring more buyers to your door.
Support for qualifying new build purchases should not be treated as support available to every buyer or every property sale.
From our property market perspective, the starting point remains your home and the market around it. What else can buyers choose from? How does your property compare? Is the asking price supported by current evidence?
If you are buying as well as selling, consider both sides of the move together. Your sale price matters, but so do the cost of your next home, borrowing, moving expenses and timing.
We can help you assess your property’s position in the local market. Your mortgage adviser and solicitor can explain the financial and legal implications of the move you are considering.
Landlords: understand the effect of higher property income tax rates
The government’s published tax tables show the following property income tax rates for the tax year beginning in April 2027:
- Basic rate: 24%.
- Higher rate: 44%.
- Additional rate: 49%.
These are rates on taxable property income, rather than a charge on the value of a rental property. The effect on an individual landlord will depend on the applicable rules and their circumstances, including how the property is owned.
If you are considering buying, retaining or selling a rental property, ask your accountant or qualified tax adviser to calculate your position before making a decision.
That discussion should take account of ownership arrangements, borrowing, allowable expenses and any tax consequences of a sale or change in ownership.
At Properly, we can help you understand rental demand, likely market rent, property management and selling options. Your accountant should advise on your tax position.
View the government’s published property income tax rates.
Higher value homes: a future cost to consider
The High Value Council Tax Surcharge is due to apply from April 2028 to owners of residential properties in England worth £2 million or more, alongside existing council tax.
This measure was announced in the previous Budget. Today’s documents confirm plans for legislation and provisions covering deferrals, discounts and exemptions.
If you own a property that may fall within its scope, or are considering buying one, ask your solicitor or tax adviser to explain the relevant rules and potential ongoing cost.
Read the government’s published tax measures.
What does this mean for your next move?
“A home move is personal. The Budget matters, but so do your reasons for moving, your circumstances and the home you want to buy or sell. Our starting point is to help you understand the property market, while making sure you take specialist advice on the financial and legal decisions.”
Mariel Roe, co founder of Properly
Whether you are moving home or reviewing a rental property, we believe a useful conversation starts with what you want to achieve.
We can help you understand your property’s position, discuss realistic expectations and explore your selling or letting options.
If you are considering selling or letting your property, book a valuation with Properly.
If you would prefer to talk through your plans first, speak to the Properly team.
Important information
This article provides a general overview of housing and property measures announced in the Autumn Budget on 28th October 2026, together with Properly’s property market commentary. It is not a personal recommendation or financial, mortgage, investment, tax or legal advice.
The effect of any announcement will depend on your individual circumstances. Before making decisions or taking action, obtain advice from an appropriately qualified professional. Properly’s role is to provide estate agency services and property market guidance.
Information reflects the government publications available when this article was prepared. Announced measures may be subject to legislation, eligibility requirements and further guidance, and details may change. Links to official sources are included so readers can check the latest position.