Budget 2026: what actually changed for property
Stamp duty stays the same, first-time buyers get a new way in, and landlords face higher tax on property income from April 2027.
All figures from the government's published Budget 2026 documents on GOV.UK.
The Autumn Budget was delivered on 28 October. These are the measures that touch property, taken from the government's own Budget documents, with the dates each one starts.
01First-time buyers: Your First Home
A new equity loan scheme for first-time buyers of new-build homes in England, backed by £4.7 billion and aiming to help 70,000 households onto the ladder.
Equity loan20%Of the purchase price
Minimum deposit2.5%Of the purchase price
Interest-free5 yearsThen 1.5% in year 6, 3% from year 7
Income cap, outside London£110,000Total household income
Income cap, London£140,000Total household income
First salesApril 2027Applications from February 2027
Homes must be new builds in England, bought as a main home with a repayment mortgage from a participating lender, and within the local price cap. Examples published so far:
AreaPrice cap
Inner London£650,000
Outer London£500,000
Reading£375,000
Manchester£355,000
North Devon£320,000
Middlesbrough£220,000
Customer pre-registration opens before the end of 2026. The full price cap list and eligibility rules are still to be published.
Lifetime ISA
Withdrawal charge cut to 20%From 29 October 2026, for a home above the Lifetime ISA property cap. Other unauthorised withdrawals stay at 25%
First Time Buyer ISA
Launches April 202925% government bonus, up to £20,000, towards a first home worth up to £450,000. Replaces the Lifetime ISA for new savers
02Stamp duty: no change
0
changes to stamp duty rates, thresholds or the surcharge in the Budget's tax measures. The current rules carry on.
03Landlords: higher tax on property income
From 6 April 2027, property income gets its own income tax rates in England, Wales and Northern Ireland.
Property basic rate24%From 6 April 2027
Property higher rate44%From 6 April 2027
Property additional rate49%From 6 April 2027
- Scotland and WalesThe devolved governments can set their own property income rates under their existing income tax powers.
- Property income dataThe government will consult on expanding third-party reporting of property income data.
- Making Tax DigitalThose joining Making Tax Digital in April 2027 will get no late submission penalty points for 2027-28 quarterly updates.
04High-value homes
High Value Council Tax Surcharge£2m+Extra charge on homes worth £2m or more, from April 2028
ATED charges+3.5%From 1 April 2027, in line with September 2026 CPI
05More homes being built
Extra funding£1.5bnFor social and affordable homes in England
New homes~10,000Prioritised for Social Rent
Land to housing associations0% VATNew zero rate from 1 April 2027
06Key dates
What changesWhen
Lifetime ISA withdrawal charge falls to 20%For homes above the property cap29 Oct 2026
Your First Home pre-registration opensEnd of 2026
Your First Home applications openFeb 2027
ATED up 3.5%, VAT zero rate on land to housing associations1 Apr 2027
First Your First Home salesApr 2027
Property income tax at 24%, 44% and 49%6 Apr 2027
High Value Council Tax Surcharge startsHomes worth £2m or moreApr 2028
First Time Buyer ISA launchesApr 2029
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