What did the Budget change for home buyers and homeowners?
The Budget on 28 October 2026 made no change to the stamp duty rates or thresholds that home buyers pay, and it confirmed a new scheme for first-time buyers of new-build homes in England. It also changed the Lifetime ISA, announced a First Time Buyer ISA and set higher income tax rates on property income from April 2027. Each point below gives its source and date.
Did stamp duty change?
No. The Budget's overview of tax legislation lists no change to the residential Stamp Duty Land Tax rates or thresholds; its stamp duty measures are technical changes for company group relief and Local Government Pension Scheme pools (Budget 2026 overview of tax legislation and rates, gov.uk, 28 October 2026). Buyers usually still pay a 5% surcharge on top of Stamp Duty Land Tax rates in England and Northern Ireland if the purchase means they will own more than one residential property, and non-UK residents usually pay a 2% surcharge (gov.uk, 29 October 2026).
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What is the Your First Home scheme?
Your First Home is a new government scheme for first-time buyers of a new-build home in England, using a deposit of at least 2.5%, a repayment mortgage from a participating lender and a government equity loan worth 20% of the purchase price (gov.uk, Your First Home, 28 October 2026). The equity loan is interest-free for the first five years, then 1.5% in year six and 3% from year seven, and those interest payments do not reduce the amount you owe (gov.uk, Your First Home, 28 October 2026). The loan is linked to the value of your home: you normally repay 20% of the home's value at the time, so the amount you repay goes up if your home rises in value and down if it falls (gov.uk, Your First Home, 28 October 2026).
It's for households with a total income of £110,000 or less outside London, or £140,000 or less in London, and the home must be within a local price cap, which is £650,000 in inner London and £500,000 in outer London (gov.uk, Your First Home, 28 October 2026). Caps for other areas are set by local authority, and the full list and the full eligibility rules are still to be published (gov.uk, Your First Home, 28 October 2026).
When does Your First Home open?
Pre-registration opens by the end of December 2026, the first applications are expected in February 2027, and the first property sales under the scheme are planned for April 2027 (gov.uk, Your First Home, 28 October 2026). Pre-registering does not commit you to buying through the scheme (gov.uk, Your First Home, 28 October 2026).
What changed for Lifetime ISAs?
The government announced in the Budget on 28 October 2026 that, from 29 October 2026, the Lifetime ISA withdrawal charge is 20% when the money goes towards buying a property costing more than the £450,000 cap, while other unauthorised withdrawals still cost 25% (Budget 2026 overview of tax legislation and rates, gov.uk, 28 October 2026). The change is being made by secondary legislation, and gov.uk's Lifetime ISA guidance still showed 25% on 29 October 2026.
The Budget also announced a First Time Buyer ISA, which will replace the Lifetime ISA for new savers when it launches in April 2029. It will pay a 25% government bonus on the final account balance, up to a maximum of £20,000, on withdrawal towards a first home worth up to £450,000, and existing Lifetime ISA holders can keep paying in and using their accounts under the current rules (Budget 2026 overview of tax legislation and rates, gov.uk, 28 October 2026).
Did the cash ISA limit change?
No. The cash ISA limit stays at £20,000 for savers over 18 from April 2027 (Budget 2026 overview of tax legislation and rates, gov.uk, 28 October 2026).
What changed for landlords?
From 6 April 2027, income tax on property income will be 24% at the property basic rate, 44% at the property higher rate and 49% at the property additional rate in England, Wales and Northern Ireland, and Scotland and Wales can set their own property rates (Budget 2026 overview of tax legislation and rates, gov.uk, 28 October 2026). These replace the 22%, 42% and 47% property rates announced for that date at Budget 2025 (HMRC, 27 November 2025).
Individual landlords currently get relief for residential finance costs, such as mortgage interest, as a tax reduction at the basic rate of 20% (gov.uk, 29 October 2026). The Budget document does not state the rate at which that relief will be given from 6 April 2027. For how these changes affect your own tax, speak to an accountant.
Most buy-to-let mortgages are not regulated by the Financial Conduct Authority.
What about council tax on higher-value homes?
A High Value Council Tax Surcharge, an additional charge on residential properties worth £2 million or more, takes effect from April 2028; it was announced at Budget 2025 and is being legislated for now (Budget 2026 overview of tax legislation and rates, gov.uk, 28 October 2026).
What does the Budget mean for your mortgage?
The Budget does not set mortgage rates or Bank Rate; Bank Rate is set by the Bank of England and is 3.75% (Bank of England, 17 September 2026). If you are on a tracker or variable rate, your payments move when Bank Rate moves, up or down; if you are on a fixed rate, your payments stay the same until the fix ends, whichever way rates move.
Your actual outcome will depend on your individual circumstances, loan size, term, and the products available to you.
This is not financial advice. Speak to an independent mortgage broker before making any decisions.
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