Budget 28 October 2026: What It Means for Property

Thu 08 Oct 2026

The Autumn Budget takes place on Wednesday 28 October 2026. It is the day the government sets out its plans for tax and spending, and it often includes news that affects the housing market.

This year, there are a few areas that people in property are keeping a close eye on. These include how landlords are taxed, what help will be offered to first-time buyers, and whether the cost of buying, owning or selling a home will change.

There has been a lot of talk in the news about what might be announced. It is important to remember that, until the Chancellor stands up and speaks, most of this is guesswork. Below is a simple watchlist, not a list of confirmed changes.

The main property topics to watch

Here is a quick summary of the key areas and why they matter.

Topic	What we know so far	Why it matters
Tax on rental income	Higher tax rates on property income are already set to start in April 2027.	Landlords may keep less of their rental profit. Any new Budget changes would be on top of this.
First-time buyer support	More details of the new Your First Home scheme are expected.	Could boost demand for new build homes and nearby homes for sale.
Stamp duty	Major changes are not expected in this Budget.	Affects how many homes are bought and sold, and the cost of buy-to-let purchases.
Capital Gains Tax	Reports suggest a rate rise has been rejected, but nothing is confirmed either way.	Matters to landlords thinking about selling or changing their portfolio.
High-value property tax	A yearly charge on homes worth over £2 million is planned from April 2028.	Mainly affects premium homes. Reports about a lower threshold are mixed.
Mortgage costs and confidence	Depends on how the markets react to the government's borrowing plans.	Could change mortgage rates for buyers and landlords who are remortgaging.

Tax on rental income

For landlords, the biggest change is one that has already been announced. From April 2027, the tax rates on income from property are due to go up by two percentage points. That means 22% for basic rate taxpayers, 42% for higher rate taxpayers and 47% for additional rate taxpayers.

This is not a new Budget measure, so it should not be confused with anything announced on 28 October. However, the Budget could bring further detail or clarification, and landlords will want to see whether anything else is added on top.

If you are weighing up whether property investment still makes sense for you, our guide on whether buy-to-let is worth it in Essex looks at the pros and cons in more detail.

Help for first-time buyers

The government announced the Your First Home scheme in September 2026. It is aimed at first-time buyers in England who want to buy a new build home. Under the plans, buyers would put down a 2.5% deposit, the government would lend 20% of the price, and a mortgage would cover the rest.

Some important details are still missing. These include the price limits for homes in different areas, any income limits for buyers, and the terms of the government loan. These are expected to be set out in the Budget, and pre-registration is expected to open by the end of 2026.

If the scheme goes ahead as planned, it could increase demand for new build homes. It may also have a knock-on effect on older homes for sale in the same areas, as more buyers start looking. If you are just starting out, our guide to getting on the property ladder in Essex explains the key steps.

Stamp duty

Stamp duty is a tax you pay when you buy a home over a certain price. Any change to it can affect how many people move and how much buy-to-let investors pay to add to their portfolio.

Current reports suggest that big changes to stamp duty are unlikely this time. For now, first-time buyers in England pay nothing on the first £300,000 of a home, and 5% on the part between £300,001 and £500,000.

Capital Gains Tax

Capital Gains Tax is paid on the profit you make when you sell something that has gone up in value, such as a buy-to-let property. It does not usually apply to the home you live in. You can find the current rates on GOV.UK's Capital Gains Tax rates page.

There have been reports that the Treasury looked at raising these rates. More recent reports suggest a rise has been rejected, but nothing has been confirmed. It is still one to watch, especially if you are thinking about selling a rental property or changing how you own your homes.

The "mansion tax" on high-value homes

A new yearly charge, often called the "mansion tax", has already been announced for homes in England worth more than £2 million. It is due to start in April 2028, with charges ranging from £2,500 to £7,500 a year depending on the value of the home.

There have been mixed reports about whether the £2 million threshold could be lowered. Some say a cut is being looked at, while others say the idea has been dropped. Because the reports conflict, it is best not to assume any change until it is confirmed.

Mortgage costs and market confidence

The Budget can affect mortgage rates even if it says nothing about housing directly. If the markets are worried about how much the government plans to borrow, the cost of fixed-rate mortgages can go up. If the markets feel reassured, rates may settle.

This matters to buyers working out what they can afford, and to landlords coming to the end of a fixed-rate deal. If you would like to talk through your options before or after the Budget, our mortgage advice team can help you understand where you stand.

What to keep in mind

Ahead of 28 October, the most useful thing you can do is avoid acting on rumours. Wait for the official announcements, then look closely at the details. In particular, check:

whether a change has actually been confirmed
when it will start
who it applies to
whether it affects England only or the whole of the UK

Some measures can take months or even years to come into force, so there is often time to plan.

Frequently asked questions

When is the Budget?

The Autumn Budget is on Wednesday 28 October 2026.

Are landlords' tax rates going up?

Yes. Tax rates on property income are already due to rise by two percentage points from April 2027. This was announced before this Budget, so it is happening either way.

What is the Your First Home scheme?

It is a new scheme for first-time buyers in England buying a new-build home. Buyers would need a 2.5% deposit, and the government would lend 20% of the price. Full details are expected in the Budget.

Will stamp duty change in this Budget?

Current reporting suggests major changes to stamp duty are unlikely, but nothing is certain until the Budget is announced.

How we can help

Whether you are a landlord, a first-time buyer or thinking about selling, the Budget may raise questions about your next move. Our team in Benfleet and Hockley keeps a close eye on changes that affect the local market and is always happy to talk things through.

We are not tax advisers, so for advice about your own finances, it is best to speak to an accountant or tax professional. But if you have questions about buying, selling or letting a property in South Essex, please get in touch.