Budget 2026: What To Expect If You’re A Homeowner, Landlord or Renter

In his first budget as Chancellor of the Exchequer, John Healey could announce changes which could affect homeowners, landlords and renters in the UK.

From a new first-time buyer scheme to property tax overhauls, here’s what we know so far and how it could impact you.

What has already been announced?

• New support for first-time buyers 

The government revealed that it’s launching a new scheme to help first-time buyers get onto the property ladder.

‘Your First Home’ is an equity loan scheme that will be available to first-time buyers in England looking to purchase a new-build property with a minimum deposit of 2.5%.

Through the scheme, they can get a government-backed equity loan worth 20% of the purchase price of the property. To cover the rest, buyers will need to take out a standard mortgage for 77.5% of the property’s value.

The Your First Home scheme is expected to have household income caps to ensure only those who couldn’t afford to buy a property without it get the support.

Exact details of how this scheme will work, eligibility and limits will be announced in the Budget later this month.

• Income tax rises on rental income from April 2027

From April 2027, income tax on rental income will rise by 2 percentage points across all tax bands.

That means that the rates individual landlords pay will rise to 22%, 42% and 47% depending on their tax bracket.

The table below shows how it compares to income tax rates:

For more details on how UK tax rules might affect you, check the Investing Inisders Tax Hub.

• Council tax surcharge from April 2028

The government announced in last year’s budget that a new annual council tax surcharge will apply to properties valued at over £2m.

There will be four price bands with the surcharge, with the lowest at £2m-£2.5m – £2,500 rising up to £7,500 for homes valued at £5m or more.

What could change from 28th October?

One of the bigger tax changes which could affect landlords and second homeowners is an increase in capital gains tax (CGT).

Under current rules, the profit you make from residential property is taxed at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers, the Financial Times reported.

It’s speculated that the Treasury is considering the impact of increasing CGT to match income tax levels. This could mean that higher-rate and additional-rate taxpayers could face CGT rates of 20% and 25% instead of the current 24% cap.

What is unlikely to change?

The government has ruled out major changes to Stamp Duty and property tax for this year’s budget.

It also said it has “no plans” to introduce a 10% inheritance tax levy on estates to help fund social care.

What can you do now?

As with all budget speculation, it’s important to focus on the facts rather than rumoured changes.

Avoid acting in haste and making decisions purely based on predictions.

If you’re concerned about what changes in tax could mean for your property, speaking with an independent financial adviser could help you understand your circumstances.

For prospective homebuyers, taking time to boost your house deposit, improve your credit score and compare mortgages can help ensure you’re ready to kickstart your home buying journey, whether or not the new equity loan scheme is for you.

If you need support or more help understanding how to get on to the property ladder, speaking with an FCA-regulated mortgage adviser could help simplify what you need to know.

Sources

• GOV.UK

• The Financial Times