What the Budget means for buyers, sellers and landlords

The Budget has now been delivered. It brought a new equity-loan scheme for first-time buyers, a further rise in tax on rental income and no change to Stamp Duty. Here is what was announced, what people are saying about it, and what it could mean for Surrey and south-west London.

Figures correct as of 29 October 2026.

After weeks of speculation, the property measures are now known. This is a summary of what was announced on 28 October, with the arguments on both sides, followed by the latest numbers on prices and mortgages. Several of the details below come from trade and industry reporting of the Budget rather than the Treasury documents themselves, so anyone making a decision should check the official detail.

What the Budget said on property

First-time buyers. The government announced a Your First Home scheme, backed by £4.7 billion. It offers a 20% equity loan, interest-free for five years, alongside a deposit of between 2.5% and 15%. It is for first-time buyers of new-build homes, with household income limits of £110,000 (£140,000 in London) and price caps based on local authority median prices, including £650,000 in inner London and £500,000 in outer London. Pre-registration is due to open by the end of December, full applications from February 2027 and first loans from April 2027. From April 2029 a new First Time Buyer ISA is due to replace the Lifetime ISA for new savers, with up to £4,000 a year paid in and a 25% government bonus.

Landlords. Tax rates on property income rise by a further two percentage points from 6 April 2027, on top of a rise announced earlier. Reported rates will be 24% (basic), 44% (higher) and 49% (additional).

High-value homes. The council tax surcharge on English homes valued at £2 million or more goes ahead from April 2028 and the threshold was not lowered. Reported charges run from £2,500 a year for homes between £2m and £2.5m up to £7,500 for homes worth £5m or more, paid by the owner, with a deferral scheme, exemptions and discounts.

Stamp Duty and Capital Gains Tax. No changes to Stamp Duty were announced. The lifetime limit for Business Asset Disposal Relief, a Capital Gains Tax relief for qualifying business sales, falls from £1 million to £500,000 from April 2027.

Forecasts. The Office for Budget Responsibility expects house price growth of about 2% in 2026 and 2.5% in 2027, according to Propertymark’s summary. These are forecasts, not guarantees.

Reaction: the arguments on both sides

Supporters of the first-time buyer package say it helps people with small deposits get onto the ladder. A Zoopla commentator estimated the scheme would have about half the impact of Help to Buy. Critics, including Which?, warn that equity loans can leave buyers facing higher costs after the interest-free period and may push up prices. The OBR itself expects only a marginal effect on supply and a slight rise in prices, according to Propertymark.

On landlords, the government’s case is that property income should carry a tax burden closer to other income. Propertymark and tax advisers argue the rise discourages new landlords, and could reduce rental supply and push up rents over time. Propertymark also says Stamp Duty reform is still needed to help people move between stages of homeownership.

Mortgages and interest rates

The Office for National Statistics reported that CPI inflation was 3.5% in the year to September, up from 3.1% in August (as reported by Mortgage Solutions on 21 October). Bank Rate is 3.75%, and the Bank of England’s next announcement is on 5 November. Mortgage industry commentators expect a rise; that is their forecast, not a decision. Moneyfacts put the average two-year fixed rate at 5.96% on 15 October, up from 5.73% a month earlier (as reported by The Intermediary).

The numbers this week

HM Land Registry’s August figures, published on 21 October, put the average price in England at £294,000, up 0.4% on a year earlier. These figures are provisional. London was 2.2% lower, and London flats were down 5.0%. Zoopla’s latest index, as reported by Property Industry Eye on 27 October, found 35% of UK homes in postcode areas where prices are lower than a year ago, with sales agreed down 7% year on year and homes for sale up 7%. This is secondary reporting, so it is worth checking against Zoopla’s own release.

What this means for Surrey and south-west London

The Land Registry puts the average price in Surrey at £524,334 for August, down 0.2% on a year earlier, so the county is essentially flat. Zoopla’s regional figures, as reported, showed the South East 0.6% lower and London 1.0% lower. Averages hide a lot of local variation.

For buyers, the First Home scheme is limited to new-build homes and income and price caps apply, so it will suit only some people. Stamp Duty is unchanged, so the costs you can plan around are the same as before the Budget. For sellers, the main influence on a buyer’s budget is still the cost of borrowing, and the Bank Rate decision is a week away. For landlords, the higher tax rates from April 2027 are worth discussing with a tax adviser. Owners of homes at £2 million or more should check the detail of the surcharge.

At PIM & PARTNERS we follow these figures each week so that you do not have to. If you are thinking about a move in Surrey or south-west London and would like to talk it through, get in touch at pim@pim-partners.co.uk.

Sources

• Propertymark, Budget 2026 raises landlord taxes as new support targets first-time buyers (28 October 2026)
• The Negotiator, what the Budget announced for the housing market (28 October 2026)
• Which?, boost for first-time buyers in the Budget but landlords hit again (28 October 2026)
• HM Land Registry, UK House Price Index England: August 2026 (21 October 2026)
• Property Industry Eye, reporting Zoopla’s House Price Index (27 October 2026)
• Mortgage Solutions, reporting ONS inflation for September (21 October 2026)
• Bank of England, Bank Rate and next decision date
• The Intermediary, reporting Moneyfacts rates for 15 October (16 October 2026)

This article is general information, not financial or mortgage advice. Property values can go down as well as up. Please speak to a qualified mortgage adviser before making borrowing decisions.