No stamp duty rise. No capital gains tax hike. But a £2,500-a-year council tax surcharge on prime homes, a two-point tax grab on landlord income, and a five-month gap before first-time buyers can access the government's flagship mortgage scheme. Chancellor John Healey's statement on 28 October 2026 was less dramatic than many feared, but the detail matters more than the headlines.
This Budget 2026 property round-up for homeowners, buyers and landlords breaks down exactly what changed, what stayed the same, and what it means if you own, rent, or are about to buy a home in England.
Key Takeaways
- Stamp Duty Land Tax is unchanged from April 2025 rates, but rent under assured tenancies will be SDLT-free from 1 May 2026.
- Your First Home launches April 2027 with a 20% government equity loan on new-builds, but a "vacuum" may hit first-time buyers before then.
- Landlord income tax rises two points from April 2027, with the OBR warning rents are "more likely than not" to rise.
- A new council tax surcharge hits homes worth £2 million or more from April 2028, starting at £2,500 a year.
- Capital Gains Tax and building regulations remain untouched, offering rare stability for investors and developers.
Stamp Duty: Steady, With One Quiet Change
Anyone expecting a shake-up of Stamp Duty Land Tax (SDLT) in this Budget 2026 property round-up will be disappointed, or relieved, depending on which side of the transaction they sit. The rates set from 1 April 2025 remain fully in place:
| Price Band | Standard Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001,£250,000 | 2% |
| £250,001,£925,000 | 5% |
| £925,001,£1.5m | 10% |
| Above £1.5m | 12% |
First-time buyers still pay 0% up to £300,000 and 5% between £300,001 and £500,000. The additional property surcharge stays at 5%, and overseas buyers continue to pay an extra 2%.
Two genuine changes did land. From 29 October 2026, a technical tweak to SDLT group relief takes effect, tightening how connected companies transfer property between each other. More significantly, rent paid under assured tenancies will no longer attract SDLT from 1 May 2026, once legislated, a welcome simplification for landlords renewing long-term lets.
Your First Home: A New Scheme, But Not Yet
The centrepiece for buyers is Your First Home, a £4.7 billion scheme launching in April 2027. It offers a 20% government equity loan on new-build homes in England, with deposits as low as 2.5% and up to 15%. The loan is interest-free for five years, then charges 1.5% in year six, rising to 3% from year seven onward.
Eligibility caps include:
- Income limits: £110,000 outside London, £140,000 in London
- Price caps: £650,000 in inner London, £500,000 in outer London (other regional caps still to be confirmed)
- Around 70,000 households are expected to benefit over five years
The catch, flagged by RBC analyst Anthony Codling, is timing. With the scheme not launching until April 2027, buyers face what he calls a five-month first-time buyer vacuum, a gap where current support has wound down but the new scheme hasn't started. Anyone planning a purchase in late 2026 or early 2027 should factor this into their timeline.
ISA Changes: Smaller Penalty Now, New Product Later
For savers, there's immediate and longer-term news. From 29 October 2026, the Lifetime ISA withdrawal charge for buying a home above the £450,000 price cap drops from 25% to 20%, a modest but real reduction in the penalty for breaching the cap.
Looking further ahead, a First Time Buyer ISA launches in April 2029, offering £4,000 annual contributions with a 25% government bonus capped at £20,000, tied to the same £450,000 property limit. Unlike the Lifetime ISA, it carries no age cap, opening it up to older first-time buyers.
Landlords Face the Biggest Tax Hit in This Budget
This is arguably the most consequential element of this Budget 2026 property round-up for buyers, homeowners and landlords alike. From April 2027, tax on property and savings income rises by two percentage points, pushing rates to 24%, 44% and 49% across the bands.
The Office for Budget Responsibility (OBR) was blunt in its assessment, warning of a "material reduction in return to private landlords" and stating that rent rises are "more likely than not" as a consequence. The Treasury expects the change to raise roughly £400 million a year.
"A material reduction in return to private landlords", OBR assessment on the property income tax rise
Landlords should model the net yield impact now, particularly on portfolios geared toward income rather than capital growth.
The New High Value Council Tax Surcharge
From April 2028, homes valued at £2 million or more in England will face a High Value Council Tax Surcharge, ranging from £2,500 to £7,500 annually, payable by the owner. Notably, the threshold was not lowered to £1.5 million as some had speculated.
Key mechanics:
- The Valuation Office Agency (VOA) will handle banding, with draft bands published in autumn 2027
- Appeals go to the Valuation Tribunal
- Deferral is available for owners with income below £35,000, savings below £16,000, or a disability
Owners of higher-value homes should expect valuation activity to pick up well before the 2028 start date.
What Stayed the Same
Stability features heavily in this Budget 2026 property round-up for homeowners, buyers and landlords. Capital Gains Tax was not increased, a relief for investors and second-home sellers. Building regulations remain largely unchanged for the rest of this Parliament, except for building safety rules, which are excluded from the freeze.
Planning and housing supply did see smaller moves:
- A Biodiversity Net Gain exemption for brownfield housing sites up to 1.5 hectares (implementation date still to be confirmed)
- Councils must publish planning documents as open data by the end of 2027
- An extra £1.5 billion for the Social and Affordable Homes Programme, funding roughly 10,000 homes
Wider Economic Context
The OBR trimmed its growth forecast to 1% for next year. Property transactions are forecast at around 1.2 million in 2026, rising to 1.3 million by 2031, about 4% below the March forecast. The average effective mortgage rate is expected to climb from roughly 4% now to 5% by 2031, and the forecast for net housing additions was cut by 190,000 homes.
Other measures of note: the bank surcharge rises by 3%, a £100 winter energy payment goes to 20 million households in council tax bands A to D, and Business Asset Disposal Relief halves to a £500,000 limit from 6 April 2027. Separately, new HM Land Registry rules on contractual-control disclosure take effect from 6 April 2027.
Bank Rate currently sits at 3.75%, with a rise to 4% expected on 5 November 2026. CPI inflation stood at 3.5% in September.
What It Means for Surveys and Valuations
With mortgage rates trending upward and transaction volumes softening, accurate valuation matters more than ever. The new council tax surcharge will drive demand for VOA appeals and independent valuations on £2 million-plus homes well ahead of 2028. Landlords reassessing yields after the income tax rise will also need updated rental valuations to inform portfolio decisions. Chartered surveyors should expect increased instructions tied to both appeal preparation and investment re-modelling over the next 18 months.
FAQ
Did Stamp Duty change in the Autumn Budget 2026?
No. Rates from 1 April 2025 remain in place, though SDLT no longer applies to rent under assured tenancies from 1 May 2026.
When does Your First Home launch?
April 2027, offering a 20% equity loan on new-build homes in England.
How much will landlords pay in extra tax?
Property and savings income tax rises two percentage points from April 2027, to 24%, 44% and 49%.
Who pays the new council tax surcharge?
Owners of homes worth £2 million or more in England, from April 2028, ranging from £2,500 to £7,500 a year.
Was Capital Gains Tax increased?
No, CGT rates were left unchanged in this Budget.
Conclusion
This Budget 2026 property round-up shows a government avoiding broad tax rises on transactions while targeting high-value homes and landlord income more precisely. Buyers should plan around the first-time buyer vacuum before April 2027, landlords should re-run their numbers against higher tax rates, and owners of £2 million-plus properties should prepare for valuation and appeal activity well before 2028. Speaking with a RICS chartered surveyor now can help clarify how these changes affect individual property decisions.