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28 October 2026

Autumn Budget 2026: What it means for buyers, sellers and landlords

Autumn Budget 2026: What it means for buyers, sellers and landlords

Higher taxes for landlords, new help for first-time buyers and changes to property savings rules. Partner Henry Scott looks at the key announcements from the 2026 Autumn Budget and what they mean for the property market.

The Chancellor has delivered the 2026 Autumn Budget, introducing a series of targeted property measures that will shape some of the fiscal tools influencing the UK housing market heading into 2027. While some widely feared tax hikes did not materialise, the government has introduced significant changes aimed at boosting first-time buyers while placing a heavier tax burden on private landlords.

Here at StephensonsRural and BoultonCooper, we have broken down the key announcements and what they mean for your moving or investment plans.

1. Landlords face a 'Second Tax Raid'

The biggest headline for the rental sector is a further squeeze on buy-to-let investors. Following a 2% increase introduced last year, the government has announced an additional 2% hike to property income tax, taking effect on 6 April 2027.

Under the new rules, the final tax rates on rental income will rise to:

  • Basic rate taxpayers: 24%
  • Higher rate taxpayers: 44%
  • Additional rate taxpayers: 49%

What this means for you: If you are a landlord, reviewing your portfolio’s viability and looking at your allowable expenses is more critical than ever. While some landlords may choose to exit the market, we would maintain seeking professional advice now can help you restructure and protect your yields before the April deadline. 

We provide regular updates to all our landlords, and so do please register with us to keep up-to-date, including regular news articles and regulatory updates.  These tax changes need to be viewed alongside the Renters Right Act and the new regulations in place with new measures coming into force.  We would be delighted to review your property portfolio and ensure that it is working efficiently for you, whilst safe within the confines of the latest rules and regulations.

2. A major boost for first-time buyers

In an effort to stimulate transaction volumes at the bottom of property chains, the government confirmed a major new £4.7 billion equity loan scheme called “Your First Home”.

Launching in Spring 2027, the scheme includes:

  • Low Deposit Entry: First-time buyers will only need a 2.5% deposit, paired with a 20% interest-free government loan for the first 5 years.
  • Regional Caps: Property price limits are capped at £650,000 for inner London and £500,000 for outer London, restricted to households earning under £110,000 (£140,000 in London).
  • Lifetime ISA Relief: Effective immediately, the Lifetime ISA penalty falls from 25% to 20% for purchases exceeding the £450,000 cap, protecting savers' original contributions.

What this means for you: If you are trying to get onto the property ladder, your borrowing power is about to increase significantly. For sellers, this influx of newly qualified buyers is excellent news, as it will help property chains across the market.

3. Stability for sellers: CGT and Stamp Duty left untouched

Despite intense speculation leading up to the Budget, several market-disrupting changes failed to materialize:

  • Capital Gains Tax (CGT): Main rates on residential investment properties remain steady at 18% and 24%.
  • Stamp Duty Land Tax: Rates and the additional-property surcharge went completely unchanged.
  • Mansion Tax: The High-Value Council Tax Surcharge threshold was safely retained at £2 million rather than being lowered to £1.5 million.

What this means for you: This stability is a massive win for anyone currently in the process of selling or upgrading their home. With transaction costs remaining completely predictable, pipelines are protected from sudden fall-throughs, making it an excellent, stable window to progress with a sale.

Summary: Plan ahead for 2027

The 2026 Autumn Budget draws a clear line in the sand: first-time buyers are being heavily incentivised, while landlords face stricter penalties.  However, because the most significant tax changes do not take effect until April 2027, there is a vital window of opportunity to act.

If you're thinking of buying or selling a property, or need advice about your rental properties, please get in touch with our team. We're always happy to help and can also offer a complimentary market appraisal.