Autumn Budget 2026: Property industry reaction
Following today’s Autumn Budget, reaction from property industry experts on six key areas for the property market.
First-time buyer support: The £4.7bn Your First Home equity loan scheme, supporting 70,000 buyers, alongside the introduction of a new First Time Buyer ISA.
Inflation and borrowing costs: The extension of the fuel duty freeze, household energy support and implications for borrowing costs and property finance.
Landlord taxation: A further 2 percentage point increase in property income tax rates, adding to the financial pressures facing buy-to-let investors.
Housebuilding and development: An additional £1.5bn for social and affordable housing, alongside measures to unlock development land and reduce barriers to housing delivery.
AI and innovation: Further investment in artificial intelligence, with implications for efficiency, innovation and the future of the property industry.
High-value property taxation: Confirmation of further details surrounding the High Value Council Tax Surcharge and measures affecting certain international property investors.
First-time buyer support
The Chancellor has confirmed a £4.7bn Your First Home scheme alongside further reforms to first-time buyer savings incentives.
£4.7bn Your First Home scheme to support approximately 70,000 first-time buyer households in England and the delivery of an estimated 20,000 new homes.
Government equity loans of up to 20%, with a minimum buyer deposit of 2.5% and a maximum deposit of 15%.
Equity loans will be interest-free for five years, with interest increasing gradually thereafter.
Household income caps of £110,000 outside London and £140,000 in London, with property price caps based on local authority median prices.
Pre-registration opens by December 2026, full applications from February 2027 and first loans expected in April 2027.
A new First Time Buyer ISA from April 2029, offering a 25% government bonus, paid on withdrawal, towards the purchase of a first home worth up to £450,000. The maximum value of the bonus will be capped at £20,000.
The government will reduce the withdrawal charge for existing Lifetime ISA holders who use their savings to purchase a first home above the £450,000 price cap. From 29 October 2026 the withdrawal charge for purchases of properties above the property price cap will be reduced to 20%. The charge for unauthorised withdrawals will remain at 25%.
Verona Frankish, CEO of Yopa
“Today’s announcement will be welcome news for thousands of aspiring first-time buyers who have spent years saving hard, making sacrifices and watching homeownership move further out of reach. A smaller deposit requirement and five years of interest-free support could make a genuine difference, helping more people take that all-important first step onto the ladder.
“However, we must be careful not to repeat the mistakes of the past. Without sufficient housing supply, additional purchasing power risks pushing prices higher and leaving buyers vulnerable to negative equity. The Government must ensure this support is matched by meaningful action to deliver more first-time buyer suitable homes.”
Adam Day, Head of Estate Agency eXp UK & Europe
“It’s Groundhog Day for the Government, which has once again chosen to stoke the furnace of buyer demand without doing nearly enough to secure the housing supply needed to fuel it. While helping first-time buyers onto the ladder is a worthy ambition, we’ve seen before how demand-side incentives can inflate house prices when the supply of available homes fails to keep pace.
“The additional investment in housebuilding is welcome, but it barely scratches the surface of the wider supply challenge. Until we see meaningful progress in removing the barriers to housing delivery, there’s a real risk that today’s support simply pushes homeownership further out of reach for the next generation.”
Inflation, borrowing costs and property finance
The Chancellor has announced measures aimed at easing household costs and reducing inflationary pressures, although the economic outlook remains challenging.
The existing 5p fuel duty cut and freeze will be extended until 1 July 2027.
The electricity VAT cut will be extended until July 2027, with the Government estimating a reduction of around £50 in the annual energy price cap in April 2027.
A £100 Household Energy Payment will be introduced from January 2027 for qualifying households in England in council tax bands A-D.
Gas standing charges will be abolished from 2027 onwards, accompanied by targeted mitigations to ensure this is delivered fairly.
The OBR forecasts inflation will peak at 3.8% in Q1 2027 before returning to around the 2% target by Q3 2028.
Jonathan Samuels, CEO of specialist lender Octane Capital
“The single most beneficial thing the Chancellor can do for the property market is help bring borrowing costs down, and that starts with tackling inflation. While interest rates are ultimately the responsibility of the Bank of England, today’s extension of the fuel duty freeze and energy bill support are welcome steps towards easing inflationary pressures, although more will be needed to bring inflation back under control.
Lower borrowing costs would help unlock greater activity across the property market, giving buyers, investors and developers the confidence to move forward. Specialist finance, particularly bridging and development lending, has an important role to play in supporting investment, refurbishment and housing delivery, but a more favourable economic environment would provide the strongest foundation for sustained growth.”
Landlord taxation and investment
The Chancellor has confirmed a further increase in property income tax rates, adding to the financial pressures facing landlords and property investors.
Property income tax rates will increase by a further 2 percentage points from 6 April 2027, on top of previously announced increases.
The property basic rate will rise to 24%, the higher rate to 44%, and the additional rate to 49%.
The new rates will apply across England, Wales and Northern Ireland.
Stamp Duty Land Tax on rent paid under assured tenancies in England will be removed, effective from 1 May 2026.
A new licensing regime for supported housing in England will be introduced in 2027-28 to enforce national standards.
Marc von Grundherr, Director of lettings and estate agency Benham and Reeves
“Landlords have been kicked while they’re down once again, with the Chancellor delivering yet another blow to buy-to-let profitability. The private rented sector is already contending with higher operating costs, mounting regulatory obligations, and the financial pressures of maintaining rental homes, so a further increase in property income tax is the last thing landlords need.
The Government cannot continue to squeeze landlords financially while expecting them to provide the homes the nation so desperately needs. If investment in the sector becomes increasingly unattractive, more landlords will inevitably reconsider their position, further reducing rental stock and placing additional upward pressure on rents for tenants.”
Roma Sharma, Managing Director of property management specialists Rushbrook
“With the Government’s sustained campaign against landlords, a hit to buy-to-let profitability has become a frequent and almost expected feature of the Autumn Budget. Today’s further increase in property income tax is another blow to a sector already grappling with rising operating costs, tighter regulation, and growing financial pressures.
The concern is that landlords can only absorb so much before difficult decisions have to be made. Whether that’s delaying essential property improvements, increasing rents where possible, or exiting the market altogether, the consequences will ultimately be felt by tenants who are already struggling with limited choice and affordability.”
Sim Sekhon, Group CEO at LegalforLandlords
“Landlords have been dealt another blow in today’s Autumn Budget, with a further increase in property income tax adding to the mounting pressures already facing the sector. With the Renters’ Rights Act, rising maintenance costs and increasingly demanding property standards all placing additional burdens on landlords, another tax hike is hardly the support the sector needs.
“The last thing the private rented sector needs is to become a political football once again.
Responsible landlords need stability and confidence to plan ahead, invest in their properties and provide quality homes for tenants. Continuing to squeeze them financially risks driving more landlords out of the market, reducing rental supply and ultimately leaving tenants worse off.”
Chris Mason, CEO of client money handling experts The Letting Partnership
“Another increase in property income tax will place further pressure on landlords’ finances, but it also reinforces the importance of sound financial management across the lettings sector. As margins become increasingly squeezed, landlords and letting agents alike need a clear understanding of their income, expenditure and financial obligations.
For letting agents, this means maintaining rigorous accounting practices and ensuring client money is properly protected, reconciled and accounted for at all times. Financial pressures must never come at the expense of these fundamental responsibilities, particularly when agents are entrusted with holding and managing significant sums on behalf of landlords and tenants.”
Housebuilding and development
The Government has announced an additional £1.5bn for social and affordable housing, alongside measures intended to reduce development costs and accelerate housing delivery.
£1.5bn additional investment to deliver approximately 10,000 social and affordable homes in England, prioritising Social Rent and council housing.
Total investment in the Social and Affordable Homes Programme will exceed £40bn over ten years.
Preferential borrowing rates for councils building homes will be extended for another year, at 40 basis points below the standard Public Works Loan Board rate.
Land sold to eligible registered social housing providers will benefit from zero-rated VAT from April 2027.
Residential brownfield developments of up to 1.5 hectares in England will be exempt from Biodiversity Net Gain requirements, with implementation details to follow.
Participating developers will contribute towards the Your First Home scheme, with contributions calculated on a sliding scale to protect smaller developments.
AI-assisted planning tools will be made available to English councils by the end of 2027, subject to further testing.
Andy Morrison, Director of UK Property Development
“The additional £1.5bn for social and affordable housing is a welcome commitment, but the real test will be whether it translates into homes on the ground. Funding is only one part of the equation, and developers continue to face considerable challenges around planning delays, construction costs and the financial viability of bringing new sites forward.
The proposed changes to brownfield development are a positive step, but the Government must go further in removing the obstacles that prevent housebuilding at scale. Without meaningful reform, there’s a danger that today’s investment delivers far less than its headline promise.”
Founder of LandSale, Adam Morris
“Additional investment in affordable housing is welcome, but the Government must recognise that every new home starts with a suitable plot of land. There’s little point committing billions to housebuilding if developers continue to struggle to access viable sites, navigate the planning system, and bring land forward for development.
The proposed relaxation of brownfield development requirements is a step in the right direction, but we need to see a far more ambitious approach to unlocking land across the country. Whether that’s brownfield regeneration or bringing suitable underutilised land into use, removing barriers to development will be just as important as the funding announced today.”
Artificial intelligence and innovation
The Chancellor has committed further funding to Britain’s artificial intelligence capabilities, with investment intended to support technological innovation, business growth and improved productivity.
An additional £140m for the Sovereign AI Unit to support promising UK AI companies.
£120m additional funding for the AI Security Institute.
£40m to establish a National Agentic Security Unit.
£154m to strengthen national cyber defences.
New regulatory measures intended to help businesses test emerging technologies more quickly.
Sam Humphreys, Head of M&A at lettings acquisitions specialist Dwelly
“It’s encouraging to see the Government recognise the momentum building behind artificial intelligence, which is already transforming the property sector. From rental portfolio management and property marketing to sales progression and communication between buyers, sellers, landlords and tenants, AI is creating opportunities to make the industry more efficient, responsive, and accessible.
This investment should help accelerate that positive disruption, laying firmer foundations for a more modern property industry. By reducing administrative burdens, streamlining transactions, and improving communication, AI has the potential to deliver a far smoother experience for everyone involved, whether they’re renting, letting, buying or selling a home.”
High-value property taxation
The Chancellor has confirmed further details of the planned High Value Council Tax Surcharge, alongside changes affecting certain property investments and ownership arrangements.
The planned High Value Council Tax Surcharge will proceed, with the £2m threshold retained.
New deferral arrangements, discounts and exemptions have been confirmed.
A 100% surcharge premium will apply to qualifying properties left empty and unoccupied for at least 12 months.
Annual Tax on Enveloped Dwellings charges will increase by 3.5% for 2027-28.
From January 2029, certain UK real estate income and gains received by foreign sovereign investors will become subject to UK taxation under a new regime.
Marc von Grundherr, Director of lettings and estate agency Benham and Reeves
“London’s property market has long benefited from its ability to attract international buyers and investors, but the Government must be careful not to undermine that appeal through an increasingly punitive approach to high-value property taxation. Today’s confirmation of further measures targeting expensive homes risks sending the wrong message to overseas buyers who already face considerable costs when purchasing in the capital.
International investment plays an important role in supporting London’s wider property market and economy, and we cannot afford to take it for granted. With global buyers having no shortage of alternative destinations, continued increases in the cost of ownership risk weakening demand and damaging London’s reputation as a leading destination for property investment.”
You May Also Enjoy
Autumn Budget 2026: Property industry reaction
Can you legally BAN Halloween Trick or Treaters?
What the sector need to do differently to give first time buyers a chance
The 50-property tipping point: when landlords need a different approach
Home is where the stress is
