Chancellor John Healey delivered his first Budget on Wednesday 28 October 2026. There was good news for first-time buyers, no change to stamp duty, and another tax rise for landlords.
Here’s a simple round-up of what was announced and what it could mean for you.
Has Stamp Duty Changed?
No. As the Prime Minister had promised, there were no cuts or reforms to stamp duty for home buyers in this Budget. If you’re buying, the rates you pay are the same as they were before Budget day.
What Was Announced for First-Time Buyers?
A new “Your First Home” scheme:
- Buy a new-build home in England with a deposit from just 2.5%
- The government lends you up to 20% of the price as an equity loan, interest-free for the first five years
- Household income caps of £110,000 outside London and £140,000 in London
- Price caps based on local average prices — up to £650,000 in inner London and £500,000 in outer London
- Pre-registration by the end of December 2026, applications from February 2027 and the first loans from April 2027
The government expects the £4.7 billion scheme to help around 70,000 households. It’s only for new-build homes from participating developers, though, so it won’t suit everyone.
Changes to the Lifetime ISA:
- From 29 October 2026, the penalty for using a Lifetime ISA to buy a first home worth more than £450,000 drops from 25% to 20%
- From April 2029, a new First Time Buyer ISA will replace the Lifetime ISA for new savers, with a 25% government bonus on up to £4,000 a year and no upper age limit
What Was Announced for Landlords?
Landlords were the big losers in this Budget.
- Income tax on property income will rise by a further 2 percentage points from 6 April 2027
- That means rates of 24%, 44% and 49% — up from the 22%, 42% and 47% announced last year
- This applies to landlords who own property in their own name. Limited companies pay corporation tax instead, so aren’t affected
- The main capital gains tax rates on property stay at 18% and 24%
- Making Tax Digital continues as planned, with more landlords joining from April 2027
What About Homeowners?
- The High Value Council Tax Surcharge was confirmed for homes in England worth £2 million or more, starting at £2,500 a year and rising to £7,500 for homes over £5 million. The first bills are due in March 2028
- Income tax thresholds stay frozen until April 2031, so rising pay may still push some people into a higher tax band
- Households in council tax bands A to D in England will get a £100 energy payment from January 2027
What It Means for You
If you’re a first-time buyer:
Your First Home could make buying a new-build much more achievable. But new-builds often cost more than older homes, and an equity loan has to be repaid, so it’s worth comparing it with other options such as a standard 95% mortgage.
If you’re a landlord:
Higher tax from April 2027 could squeeze your profits, especially if you’re a higher-rate taxpayer. Now is a good time to review your mortgage costs and how you own your properties, and to take tax advice before making any changes.
If you’re remortgaging or moving:
The Budget didn’t change mortgage rules. What matters most for your monthly payments is still interest rates, and the Bank of England’s next decision is on 5 November.
Let’s Chat
Whether you’re hoping to use the new first-time buyer scheme, reviewing your buy-to-let portfolio or just want to know where you stand, we’re here to help.
Send us a message or give us a ring — we’re ready when you are.
We are not tax advisers. For advice on your personal tax position, please speak to a qualified accountant or tax adviser. Some Budget measures still need to pass through Parliament, so details may change.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The fee is up to 1% but a typical fee is £750.
Figures quoted are correct at the time of writing (October 2026) and are for information only. This blog does not constitute personal advice.