The Budget Announcement
Chancellor Healy has just announced the Autumn 2026 Budget, and here’s what it means for the property market.
The ‘Your First Home Scheme’ has been approved, offering a 20% equity loan for a 2.5% deposit for new First Time Buyers purchasing a new build property. Also, if you are a first time buyer using a lifetime ISA (soon to be First Time Buyer ISA) to fund a purchase over £450,000, you can expect a reduction in withdrawal penalty fees.
Mortgage rates stick with 5-year fixed products remaining near 6%. This means buyer affordability is tightened, which leads to lower offers and harder negotiation from buyers. Properties which are overpriced in this competitive market could risk being overlooked if not priced realistically from the beginning.
Because of the 2% rise in property income tax, we could potentially see an influx of ex-rental properties coming on for sale, giving buyers more choice than before. High quality, professional marketing and honest advice from your agent is key to making your home stand out amongst similar listings.
For investors, we now know that Property Income Tax will rise by an additional 2%, and the Section 24 mortgage interest relief restrictions means that individual Buy-to Let yields are under a lot of pressure. Our advice would not be to immediately sell off your portfolio as an investor and face capital gains tax. Instead, we advise speaking to a mortgage broker who specializes in limited company buy to lets. We have the benefit of Igloo Mortgage within our branch and Will Louch, Igloo Swanage’s mortgage consultant, would be more than happy to help.
Now that the Mansion Tax has been confirmed for April 2028, you can expect buyers to try to negotiate more on properties priced over £2,000,000.
In essence, our advice is a joyous ‘business as usual’ as Healy left SDLT rates for primary home moves completely untouched. No need to panic!
If you’d like to discuss further please don’t hesitate to get in touch.
📍 Swanage: 01929 426655
