While some of the announcements create additional costs, particularly for landlords and owners of higher-value homes, others provide opportunities for first-time buyers and businesses. The important question is not simply what has changed, but what those changes could mean for your plans.
Below, we highlight some of the key Budget announcements affecting property owners, buyers, landlords and businesses, and consider their practical implications. This is a selected overview rather than a comprehensive account of all Budget measures.
At a glance
- Stamp Duty Land Tax (SDLT): No changes were announced. However, SDLT remains an area of political debate and could become increasingly important as future elections approach.
- First-time buyers: The new ‘Your First Home’ scheme could make purchasing a new-build property more accessible, with deposits from 2.5% supported by a 20% government-backed equity loan.
- First Time Buyer ISA: A new account from April 2029 will replace the Lifetime ISA for new savers, offering a 25% government bonus on eligible savings of up to £4,000 a year, capped at £20,000 overall, for qualifying first-home purchases costing no more than £450,000.
- Existing Lifetime ISA savers: From 29 October 2026, the withdrawal charge for first-home purchases above £450,000 falls from 25% to 20%, provided the purchase otherwise meets the qualifying rules. The standard 25% charge remains for other unauthorised withdrawals.
- Landlords: A further 2% increase in income tax on rental income will add to the tax burden on property investors and may affect the financial returns from letting property.
- Businesses: The business rates threshold will increase from £12,000 to £18,000, with 70,000 businesses expected to benefit.
- Higher-value homeowners: The High Value Council Tax Surcharge will proceed from April 2028 for properties worth £2m or more, although the threshold has not been reduced to £1.5m as had been speculated.
Stamp Duty Land Tax: no change, but property taxation remains politically significant
The Autumn Budget confirmed that there will be no changes to Stamp Duty Land Tax. SDLT on land and property raised £13.9bn for the Government in the 2024–25 financial year.
While the absence of immediate change provides greater certainty for buyers and sellers contemplating transactions now, SDLT is likely to remain part of the wider political debate. Conservative leader Kemi Badenoch has, for example, pledged to abolish SDLT as part of the Conservative Party's Blueprint for Britain campaign.
What does this mean for you?
For anyone currently considering a purchase, sale or investment, the key point is that the existing SDLT position remains unchanged. There is therefore no new Budget-related SDLT measure identified here that requires buyers or sellers to alter their immediate plans.
Looking further ahead, however, property taxation is likely to remain an important consideration. Buyers, investors and developers considering longer-term transactions should therefore remain alert to future policy announcements.
Your First Home: a new opportunity for first-time buyers
The Government has announced a new scheme designed to make purchasing a new-build home more accessible for first-time buyers.
Under Your First Home, eligible purchasers will be able to buy with a deposit of as little as 2.5%, supported by a government-backed equity loan worth 20% of the property's value. The loan will be interest-free for five years, with incremental increases thereafter.
Price caps have been set at £650,000 in inner London and £500,000 in outer London, with limits for other areas to be announced. Household income caps will range from £140,000 in London to £110,000 outside London.
The Government expects the £4.7 billion scheme to support around 70,000 first-time buyers and contribute towards the creation of 20,000 new homes.
What does this mean for you?
For first-time buyers who have sufficient income to support a mortgage but have struggled to accumulate a larger deposit, the scheme could provide a new route into home ownership.
There are, however, longer-term financial considerations. The equity loan is interest-free for the first five years rather than permanently, and buyers will need to understand how the arrangement affects their finances beyond that initial period.
Prospective purchasers should therefore consider both the immediate affordability benefits and their longer-term financial position before committing to a purchase.
New First Time Buyer ISA: further support for those saving for their first home
The Budget also confirmed the introduction of a new First Time Buyer ISA from April 2029, which will replace the Lifetime ISA for new savers.
The new account will allow eligible first-time buyers to save up to £4,000 each year towards their first home, with the Government providing a 25% bonus on eligible savings. The Government bonus will be paid when the funds are withdrawn for a qualifying first-home purchase, rather than being added to the account as contributions are made.
The maximum Government bonus available will be £20,000 and the property being purchased must cost no more than £450,000.
Unlike the Lifetime ISA, the new First Time Buyer ISA will be focused specifically on purchasing a first home and will not have an upper age restriction. The account will need to have been open for at least 12 months before the Government bonus can be claimed, and the property must be purchased with a mortgage.
Existing Lifetime ISA holders will not be forced to move to the new product and will be able to continue saving into and using their existing Lifetime ISA under its rules.
What does this mean for you?
For prospective first-time buyers, the new ISA could provide a significant additional contribution towards building a deposit. Someone ultimately qualifying for the maximum £20,000 Government bonus could have a materially larger amount available when they come to purchase their first property.
There is, however, an important consideration for buyers in London and the South East, where property values can be higher. The £450,000 property price ceiling means that buyers looking at homes above that figure will not qualify for the First Time Buyer ISA purchase bonus.
This makes planning important. Prospective first-time buyers should consider the likely value of the property they ultimately expect to purchase, as well as how much they intend to save and when they expect to enter the market.
For those intending to buy before April 2029, the Lifetime ISA remains relevant and it will continue to be possible to open one before the new scheme is introduced.
Lifetime ISA changes: reduced charge for homes costing more than £450,000
There is also more immediate good news for existing Lifetime ISA savers.
From 29 October 2026, the withdrawal charge applying where Lifetime ISA savings are used to purchase a first home costing more than the existing £450,000 property cap has been reduced from 25% to 20%, provided the purchase otherwise meets the qualifying rules.
The effect of the reduction is important. The previous 25% withdrawal charge could result in savers losing not only the Government bonus but also part of their original contributions. Reducing the charge to 20% is designed to ensure that affected savers retain their own contributions while giving up the Government bonus where the property exceeds the scheme's price limit.
The standard 25% charge will continue to apply to other unauthorised Lifetime ISA withdrawals.
What does this mean for you?
This is particularly relevant to first-time buyers in areas where property values commonly exceed £450,000, including parts of London and the South East.
Existing Lifetime ISA holders considering a property above the £450,000 limit now have greater flexibility. Purchasing above the threshold will still mean losing the benefit of the Government bonus, but the reduced 20% charge should protect the saver from losing part of their original contributions purely because their chosen property exceeds the price cap.
For prospective buyers already progressing a transaction around or above the £450,000 threshold, the change could therefore have an immediate financial impact and should be considered as part of their purchase and funding arrangements.
Taken together with the new Your First Home scheme, these announcements demonstrate a clear focus on helping first-time buyers overcome one of the biggest barriers to home ownership: accumulating a sufficient deposit. However, the £450,000 ISA property cap means the benefit will not apply equally across the country, particularly in higher-value areas.
Landlords: property income tax to rise again
The Budget creates a less favourable tax environment for landlords.
Following the 2% increase in tax rates on rental income announced in last year's Autumn Budget and due to take effect from April 2027, a further 2% increase has now been announced.
This means landlords will face tax rates on rental income of 24%, 44% or 49%, depending on their tax bracket.
What does this mean for you?
For landlords, the immediate issue is the potential impact on the net return generated by a rental property.
The announcement does not necessarily mean that landlords should leave the property market. It does, however, make it increasingly important for existing and prospective landlords to understand whether their property investments continue to meet their financial objectives after tax.
Landlords considering purchasing additional properties, reorganising their portfolios or making longer-term investment decisions should factor the increased taxation of rental income into their calculations and seek appropriate tax and financial advice where necessary.
Business rates: potential savings for 70,000 businesses
The Budget also contains more positive news for some businesses.
The threshold at which companies begin paying business rates will increase from £12,000 to £18,000. According to the announcement, this means that half of all retail, hospitality and leisure properties will pay no business rates.
Businesses in those sectors falling outside the threshold will have their business rates frozen.
This follows the previous announcement of a 20% reduction in business rates for pubs, clubs and music venues from April 2027.
What does this mean for you?
Businesses occupying commercial property should establish whether they fall within the revised threshold and therefore stand to benefit from reduced or eliminated business rates.
For businesses considering taking new premises or reviewing their property requirements, rates remain an important part of the overall cost of occupation. The revised threshold may therefore alter the economics of certain premises and should be factored into future property decisions.
High Value Council Tax Surcharge: £2m threshold retained
Recent speculation had suggested that the threshold for the High Value Council Tax Surcharge might be reduced from £2m to £1.5m. The Chancellor has ruled out that change.
The surcharge will nevertheless come into effect from April 2028 for properties worth £2m or more.
There will be four charging bands, starting at £2,500 per year for properties valued between £2m and £2.5m, rising to £7,500 per year for homes valued at £5m or more.
Fewer than 1% of homes in England are reported to be worth more than £2m, with the effect therefore expected to be concentrated primarily on properties in London and the South East.
What does this mean for you?
Owners and prospective purchasers of higher-value homes now have greater clarity around the £2m threshold, but the surcharge represents an additional recurring cost of owning qualifying property from April 2028.
For people considering buying, selling or retaining property around or above the threshold, that future annual cost should form part of the overall assessment of affordability and the economics of ownership.
What should property clients be thinking about now?
The Budget does not point to one conclusion for everyone in the property market. Instead, its impact will depend heavily on your circumstances.
First-time buyers may have a new opportunity to enter the new-build market with a significantly smaller deposit.
Existing and prospective landlords should reassess rental returns in light of the additional taxation and consider whether their investment strategy remains commercially appropriate.
Business occupiers should establish whether the increased business rates threshold reduces their property costs.
Owners and buyers of higher-value homes, particularly in London and the South East, should incorporate the forthcoming council tax surcharge into their longer-term financial planning.
And for buyers and sellers generally, the lack of immediate SDLT reform provides some certainty for current transactions, while the continuing political debate means property taxation remains an area worth monitoring.
How TWM can help
Whether you are buying your first home, managing a property portfolio or reviewing your business premises, understanding the legal implications can help you plan your next steps. Contact our Commercial Property or Residential Property team to discuss your circumstances and how we can help.