Autumn Budget 2026 – a mixed bag

Budget 2026: what it means for property investors and their clients

Chancellor John Healey’s first Budget offers cost of living support for households, but property investors face a further tax rise. Here’s what brokers need to know.

Today’s Budget is a mixed bag. On the one hand, there is cost of living help for many people:

• a £100 energy payment for 20 million households in council tax bands A to D
• the VAT cut on electricity extended to July
• standing charges removed from gas bills
• the fuel duty freeze extended
• a 3.9% rise in the national minimum and living wage
• the cash ISA allowance kept at £20,000

For property investors, it’s a different picture.

Landlords and property investors

The Chancellor announced a further two-percentage-point increase in tax rates on property and savings income from April 2027. It adds to the rise set in last year’s Budget.

• For unincorporated landlords, property income will be taxed at 24% (basic), 44% (higher) and 49% (additional). Limited company landlords are outside these rates.
• Finance cost relief will remain aligned with the property basic rate.
• The OBR has warned the measures risk driving landlords out of the market and pushing rents higher.
• Capital gains tax is unchanged; the Chancellor rejected calls to align it with income tax rates.

What it means for our clients: for portfolio landlords, the gap between holding property personally and through a company has widened again. Clients reviewing their structure ahead of April 2027 should take specialist tax advice.

First-time buyers: Your First Home

The government confirmed its new equity loan scheme for first-time buyers in England. It is backed by £4.7bn of government lending and launches next spring.

• Buyers need a minimum deposit of 2.5%, up to a maximum of 15%.
• The government provides a 20% equity loan, interest-free for five years, with a gradual increase after that.
• Household income caps are £110,000 outside London and £140,000 in London.
• Price caps are based on local authority median prices; in London they are £650,000 (inner) and £500,000 (outer).
• The scheme is for new-build homes only.
• Funding will be capped annually, with government working with developers and lenders to monitor demand.

The government expects the scheme to help 70,000 households onto the housing ladder.

First-time buyer ISA

A new first-time buyer ISA will replace the Lifetime ISA. From today, savers whose home costs more than the LISA price limit will get back at least what they paid in.

Developers

• There will be no major changes to building regulations for the rest of this Parliament, except where critical for safety.
• Biodiversity requirements will be removed for more brownfield sites. Detail on which sites qualify is still to come.
• Developers joining Your First Home will contribute to its costs on a sliding scale designed to protect smaller developments.
• An extra £1.5bn for social and affordable housing takes the total commitment to £40bn, alongside measures to help councils borrow to build.

Semi-commercial and mixed-use

The Small Business Rate Relief threshold for retail, hospitality and leisure businesses rises from £12,000 to £18,000 rateable value. The government says 70,000 businesses will no longer pay business rates, and other businesses will see rates frozen in real terms for two years.

• Owner-occupiers: a client buying a shop-with-flat to run their own retail, café or leisure business could see their rates bill fall away if the unit’s rateable value falls within the new threshold.
• Investors: business rates are the occupier’s bill, but lower costs strengthen the commercial tenant, which underpins the investment.
• Capital allowances: the main first-year allowance rises from 40% to 50%, relevant to plant and machinery in commercial premises.

The wider picture

• The OBR puts headroom against the government’s fiscal rules at £15bn in 2029–30, rising to £22bn in 2030–31. It expects no growth in real earnings in 2027 and 2028.
• Banks will pay an additional 3% Bank Surcharge from January for 15 months.
• For borrowers, the gilt market’s response to the Budget and the Bank of England’s rate decision on 5 November are likely to shape mortgage pricing more than any single measure.