On the 28th October 2026, Chancellor John Healey delivered his first Budget. The nation was desperate for some financial relief, with the cost of living still pulling at the purse strings. The property headlines for home movers are:
Does the above affect whether you buy, sell or invest in property in the coming months? The Budget was certainly not the big boost the industry was hoping for. Here are 9 Budget headlines in more detail.
There is no change to Capital Gains Tax (CGT). This tax is payable when a landlord who personally owns their buy-to-lets sells a property. CGT currently stands at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. CGT was last changed in 2024.
The standard inheritance tax (IHT) rate stays the same. This is 40% on the value of an estate above the tax-free thresholds, or 36% if at least 10% of the net estate is left to a registered charity. The nil-rate band remains at £325,000 per person, which is frozen until at least April 2031.
Although announced before the Budget, the Chancellor confirmed landlords will be required to pay more tax on their rental income. Property income tax rates will increase 2% on 6th April 2027. The new rates will be:
The current Stamp Duty Land Tax (SDLT) thresholds remain unchanged for first-timer buyers, homeowners and additional property buyers. The last time SDLT thresholds were changed to the benefit of homebuyers was September 2022.
Savers received good news. The amount that under 65s can save in a Cash ISA will remain at £20,000 per annum. This reverses former Chancellor Rachel Reeves’ proposal, which would have capped Cash ISA savings to £12,000 every year. Additionally, the Government isn’t introducing a tax on uninvested cash held in a shares ISA.
The Government confirmed details of its new buying schemes, called Your First Home. This is only open to first-time buyers in England and they must purchase a brand new home built by a participating housebuilder. The buyers combines a 2.5% deposit with a 20% Government-backed equity loan (interest free for the first 5 years) and a mortgage from a participating lender.
There is a household income cap: a household must earn £110,000 or less outside London, or £140,000 or less within London. Local price caps will limit how much a buyer can spend on a property. Example price caps are:
The scheme is expected to open for applications in February 2027.
For now, the Lifetime ISA (LISA) remains the Government’s savings vehicle for first-time buyers. The Chancellor confirmed the 25% withdrawal penalty applied when savers take out their money to buy a property worth more than £450,000 will reduce to 20% on 29th October 2026.
We already knew the LISA will eventually close to new applicants (date to be confirmed) and the Government used the Budget to commit to launching a replacement in April 2029. The First-Time Buyer ISA will be exclusively for first-time buyers, with revised terms and conditions. More details are expected in the coming months.
The Chancellor announced standing charges will be removed from gas bills. The standard charge is a fixed amount added daily, covering the cost of connecting a home to the gas network. The change will happen next year, with the Government claiming 60% of households will save an average of £45 per year. The unit price of gas will go up to pay for the cut, affecting those who consume the most gas. The Government said it wants to do the same for electricity standing charges.
Home movers may be disappointed that there was no stamp duty holiday announced in this year’s Budget. And there was no reprieve for landlords, who will pay 2% more tax on their rental income from April 2027.
If the Budget has left you with more questions than answers, contact Open Property Group. Our experts will help you work out the best method for selling your home in a post-Budget market.
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