The Autumn Budget 2026 is done, and property was one of the biggest talking points. Here is everything the Chancellor announced for London landlords, homeowners, buyers, sellers and tenants, what it means for your money, and what to do next.
The Chancellor, John Healey, delivered the Autumn Budget 2026 on 28 October. For London property, the message was mixed. Landlords face another tax rise, while sellers and most buyers escaped the changes many had feared.
In short, tax on rental income goes up again from April 2027. However, capital gains tax and stamp duty stay exactly as they were. First-time buyers get a new government scheme, and the planned mansion tax on £2 million homes goes ahead.
This guide breaks down every property measure in plain English. We explain who it affects, show real London examples, and answer the questions people are asking most. All figures come from the official GOV.UK Budget documents unless we say otherwise.
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What this guide covers
- Autumn Budget 2026 at a glance
- Landlords: tax on rental income rises again
- What it means for tenants and rents
- Capital gains tax: no change for sellers
- Stamp duty: unchanged
- Your First Home scheme for London buyers
- Lifetime ISA and the new First Time Buyer ISA
- Mansion tax goes ahead at £2 million
- Mortgages, savings and the economy
- Who wins and who loses from the Autumn Budget 2026
- What to do after the Autumn Budget 2026
- Frequently asked questions
Autumn Budget 2026 at a glance
Here is every property measure in one place. Scroll down for the detail on each one.
| Measure | What happened | When |
|---|---|---|
| Tax on rental income | Up a further 2 points, to 24%, 44% and 49% | April 2027 |
| Capital gains tax | No change: 18% and 24% | Now |
| Stamp duty | No change, including the 5% surcharge | Now |
| Mansion tax | Goes ahead on homes worth £2m or more | April 2028 |
| Your First Home scheme | 2.5% deposit plus 20% government loan, new-builds | Spring 2027 (reported) |
| Lifetime ISA | Withdrawal charge cut to 20% | 28 October 2026 |
| First Time Buyer ISA | New ISA with a 25% bonus | April 2029 (reported) |
| Bank tax surcharge | Doubled to 6% for 15 months | Until March 2028 |
Landlords: tax on rental income rises again
This is the headline for anyone who lets property. In the Chancellor's words, "I am increasing the rates of tax on income from property and savings by a further two percentage points from April 2027."
That rise sits on top of the increase already announced in the 2025 Budget. As a result, HMRC will tax rental profit four points higher than today, according to the official GOV.UK rates table.
| Tax band | Today (2026-27) | From April 2027 |
|---|---|---|
| Basic rate | 20% | 24% |
| Higher rate | 40% | 44% |
| Additional rate | 45% | 49% |
What it costs you
The maths is simple. Every £10,000 of taxable rental profit will cost you £400 more a year from April 2027, whatever your tax band. So a landlord with £30,000 of taxable profit pays around £1,200 extra each year.
Who is affected
The rise applies to landlords who own property in their own names. Landlords who own through a limited company pay Corporation Tax instead, so they are not caught. Reports say mortgage interest relief will stay tied to the basic property rate. Meanwhile, income tax thresholds remain frozen, which pulls more landlords into higher bands as rents rise.
We covered the first stage of this rise in our guide to the landlord tax rise in April 2027. The new Budget simply makes that rise bigger.
What it means for tenants and rents
The Budget did not change any renting rules directly. Even so, tenants may feel the effects.
Industry experts warn that higher taxes could push more landlords to sell. Fewer rental homes, combined with strong demand in London, tends to push rents up. In addition, rents can still only rise once a year under the current rules, as our guide to how rent increases work in 2026 explains.
There is some help with bills. A £100 household energy payment will go to up to 20 million homes in council tax bands A to D in 2027. The government has also extended the VAT cut on electricity to July 2027.
Capital gains tax: no change for sellers
Many landlords and second-home owners feared a big capital gains tax rise. It did not happen. The rates on residential property stay at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, as confirmed in the GOV.UK capital gains tax rates.
The annual tax-free allowance stays at £3,000. The Chancellor also announced a new 10% "Founders Relief", but it applies to business founders, not property. For landlords weighing up a sale, this is a window of certainty. Our honest guide to whether to sell your rental property can help you decide.
Stamp duty: unchanged
Stamp duty stays exactly as it was, with no cuts and no reform. That means the current residential rates still apply.
| Price band | Home mover | Second home or buy-to-let |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1.5 million | 10% | 15% |
| Over £1.5 million | 12% | 17% |
First-time buyers still pay no stamp duty on the first £300,000, then 5% up to £500,000. Above £500,000, that relief does not apply. Overseas buyers continue to pay an extra 2%.
Your First Home scheme for London buyers
The biggest boost in the Autumn Budget 2026 went to first-time buyers. The government confirmed £4.7 billion for its new Your First Home scheme and says it will help 70,000 households.
Based on the details reported so far, here is how it works. You put down a deposit from 2.5% to 15%. The government then lends you 20% of the price as an equity loan, and a mortgage covers the rest. The loan is interest-free for five years. Importantly, it only applies to new-build homes.
The London price and income caps
Price caps follow local prices. In inner London the cap is £650,000, and in outer London it is £500,000. Households in London can earn up to £140,000, compared with £110,000 elsewhere.
| Example new-build | Your 2.5% deposit | 20% government loan | Mortgage needed |
|---|---|---|---|
| £650,000 (inner London cap) | £16,250 | £130,000 | £503,750 |
| £500,000 (outer London cap) | £12,500 | £100,000 | £387,500 |
Remember, the equity loan is a loan, not a gift. You will need to repay it, usually when you sell or remortgage. See every other option in our guide to first-time buyer schemes in London.
Lifetime ISA and the new First Time Buyer ISA
Savers got good news that applies straight away. From 28 October 2026, the Lifetime ISA withdrawal charge falls to 20%. In practice, that means you get back what you paid in, without losing part of your own money.
This matters most in London. Until now, buyers purchasing above the £450,000 Lifetime ISA price cap faced a penalty. Under the new rules, they will no longer lose out.
Looking further ahead, a new First Time Buyer ISA is coming. According to reports, it launches in April 2029, with savings of up to £4,000 a year and a 25% government bonus.
Mansion tax goes ahead at £2 million
The high value council tax surcharge, often called the mansion tax, is going ahead. It applies to homes in England valued at £2 million or more from April 2028. The threshold was not lowered to £1.5 million, despite earlier rumours.
The charge is paid by owners, on top of normal council tax, and ranges from £2,500 to £7,500 a year depending on value. Reports also mention a deferral option and help for some owners. Our guide to the mansion tax covers how it works in detail.
Mortgages, savings and the economy
A few wider changes could still affect your property plans.
Mortgage rates
The tax surcharge on bank profits doubles from 3% to 6% for 15 months. Some lenders warn that cost could feed through to borrowers. Meanwhile, the Office for Budget Responsibility raised its inflation forecasts, which may slow future interest rate cuts.
Savings
Tax on savings interest also rises by two points from April 2027, matching the rental income change. However, the £20,000 cash ISA allowance stays, so ISAs remain the best home for a deposit fund.
The wider economy
The OBR cut its growth forecast for next year to 1%. Slower growth usually means a steadier, more cautious housing market rather than a sharp fall.
Who wins and who loses from the Autumn Budget 2026
Every Budget creates winners and losers. Here is how the Autumn Budget 2026 lands for different people in London.
| Who you are | Impact | Why |
|---|---|---|
| First-time buyer | Better off | Your First Home scheme and the Lifetime ISA change |
| Home mover | No change | Stamp duty unchanged |
| Seller of a second home or rental | Relief | No capital gains tax rise |
| Landlord in your own name | Worse off | Rental income tax up to 24%, 44% and 49% |
| Landlord through a company | Largely unaffected | Pays Corporation Tax, not income tax |
| Tenant | Mixed | Possible rent pressure, but energy bill help |
| Owner of a £2m-plus home | Worse off from 2028 | Mansion tax confirmed |
| Saver | Slightly worse off | Savings tax up, ISA allowance kept |
What to do after the Autumn Budget 2026
The changes are now clear, so you can plan with confidence. Here is a sensible next step for each group.
If you are a landlord
Work out your extra tax from April 2027 using the £400 per £10,000 rule. Then review your rents, costs and structure with an accountant. If you are considering selling, the unchanged capital gains tax gives you a clear window.
If you are a first-time buyer
Check whether your target area fits the Your First Home price caps. If you hold a Lifetime ISA and are buying above £450,000, the new 20% charge may work in your favour.
If you are selling
Stable tax rules and new first-time buyer support could lift demand for new-build flats and starter homes. Start with an up-to-date valuation, and read our guide to selling a flat in London.
If you rent
Nothing changes today. Keep an eye on your tenancy renewal, and check whether you qualify for the £100 energy payment in 2027.
How Homefinders can help
We have helped London landlords, buyers and sellers through every Budget since 1988. So we can turn today's headlines into a clear plan for your property.
Our team offers free valuations, local market insight, and access to financial advice and conveyancing under one roof. For landlords feeling the squeeze, our managed lettings service keeps your property compliant, while our statements make Making Tax Digital easier to handle.
Plan your next move with confidence
Book a free valuation or advice call with our East London team.
Frequently asked questions
The Autumn Budget 2026 for landlords
What did the Autumn Budget 2026 change for landlords?
Tax on rental income rises by a further two percentage points from April 2027. The new rates are 24% for basic-rate, 44% for higher-rate and 49% for additional-rate taxpayers.
How much extra tax will landlords pay?
Compared with today, every £10,000 of taxable rental profit costs £400 more a year from April 2027. A landlord with £30,000 of taxable profit pays about £1,200 extra.
Does the rental income tax rise apply to limited companies?
No. It applies to landlords who own property in their own names. Companies pay Corporation Tax instead. Moving property into a company has its own costs, so take advice first.
Will rents go up because of the Budget?
They may. Experts warn that higher taxes could push some landlords to sell, which reduces supply. In London, where demand is strong, that usually puts upward pressure on rents.
Buying and selling after the Budget
Did stamp duty change in the Autumn Budget 2026?
No. Stamp duty rates and the 5% surcharge on second homes and buy-to-lets are unchanged. First-time buyer relief also stays the same.
Did capital gains tax go up?
No. Capital gains tax on residential property stays at 18% and 24%, and the annual allowance stays at £3,000. The rumoured rise did not happen.
Is now a good time to sell a rental property?
For some landlords it may be. Capital gains tax is unchanged, while rental income tax rises from April 2027. A valuation and tax advice will show whether selling makes sense for you.
Will the Budget affect house prices in London?
A sharp change is unlikely. Stable stamp duty and capital gains tax rules, plus new support for first-time buyers, point to a steady market. More landlord sales could add supply in some areas.
First-time buyers
What is the Your First Home scheme?
It is a new government equity loan for first-time buyers of new-build homes. You pay a deposit from 2.5%, the government lends 20%, and a mortgage covers the rest. Reports say the loan is interest-free for five years.
What are the Your First Home price caps in London?
The reported caps are £650,000 in inner London and £500,000 in outer London. London households can earn up to £140,000 to qualify.
When does the Your First Home scheme start?
Reports say it will launch in spring 2027. The government should publish full guidance before then.
What changed for the Lifetime ISA?
From 28 October 2026, the withdrawal charge falls to 20%. Buyers purchasing above the £450,000 cap are no longer penalised, which helps many London first-time buyers.
Homeowners, tenants and savers
Is the mansion tax going ahead?
Yes. It applies from April 2028 to homes in England worth £2 million or more. Owners pay between £2,500 and £7,500 a year on top of council tax.
Will mortgage rates rise after the Budget?
Not necessarily, but some lenders warn the higher bank tax surcharge could feed through to borrowers. Higher inflation forecasts may also slow interest rate cuts.
What does the Budget mean for tenants?
No renting rules changed. However, landlord tax rises could add rent pressure over time. Eligible households in council tax bands A to D will receive a £100 energy payment in 2027.
Does the Budget change tax on savings?
Yes. Tax on savings interest rises by two points from April 2027. The £20,000 cash ISA allowance stays, so ISAs remain tax-free.