Autumn Budget 2026: What it means for the property market

The Autumn Budget 2026 included several announcements that could affect people planning to buy, sell or move home.

For first-time buyers, the key measures are the new Your First Home scheme and plans for a First Time Buyer ISA. Both are intended to make it easier to save for and purchase a first home, although important details are still to be confirmed.

The Budget did not introduce immediate changes to Stamp Duty rates or thresholds in England and Northern Ireland.

Support for first-time buyers

The Your First Home scheme is designed to help eligible first-time buyers in England purchase selected new-build homes.

Under the proposed scheme, buyers could purchase a participating property with:

• A deposit of 2.5%
• A 20% government-backed equity loan
• A mortgage covering the remaining 77.5%

The scheme is expected to open in Spring 2027. Eligibility is likely to depend on household income, the property’s location and value, and whether the developer is participating.

A smaller deposit could help some buyers reach the market sooner. However, buyers will still need to pass a mortgage lender’s affordability and credit checks. They should also understand how the equity loan works, including any future fees, interest or repayment requirements.

Plans for a First Time Buyer ISA

The Government is also developing a new First Time Buyer ISA (FTB ISA).

The account is intended to give people a simpler way to save specifically for their first home. It is expected to replace the Lifetime ISA for new savers once it becomes available.

Under the proposals, the FTB ISA could:

• Be available to people aged 18 and over, with no upper age limit
• Pay the Government bonus when savings are used to buy a qualifying first home
• Remove the current 25% Lifetime ISA withdrawal charge
• Offer cash and stocks and shares options

The Government has not yet confirmed the bonus rate, annual contribution limit or property price cap. April 2028 has been suggested as a possible launch date, but this should not be treated as confirmed.

What happens to existing ISAs?

People who already have a Lifetime ISA are expected to keep their accounts and continue using them under the current rules. It should also remain possible to open a LISA until the new FTB ISA becomes available.

Help to Buy ISAs have been closed to new applicants since 2019. Existing account holders can continue paying into them until November 2029 and claiming the Government bonus until November 2030.

The Government has proposed allowing Help to Buy ISA holders to transfer their savings into the new FTB ISA. However, the final transfer arrangements have not yet been published.

If you currently have a LISA or Help to Buy ISA, it is important to continue following the existing rules until further guidance is available.

Could the Budget unlock more property chains?

The measures could have an effect beyond the first-time buyer market.

First-time buyers are often at the start of a property chain. If more people are able to purchase their first home, this could allow existing homeowners to sell, move up the ladder and create further activity.

The impact will depend on several factors, including mortgage rates, local property prices, housing supply and buyer confidence. The support may be particularly relevant in areas where new-build properties fall within the scheme’s price limits.

It is also unlikely to affect every part of the market equally. Buyers will still need to consider affordability, and sellers will need to price their properties realistically.

Stamp Duty remains unchanged

The Budget did not announce immediate changes to Stamp Duty Land Tax rates or thresholds in England and Northern Ireland.

Different property taxes apply in Scotland and Wales, so buyers should check the rules that apply where they plan to purchase.

Anyone budgeting for a move should also allow for legal fees, surveys, mortgage costs, removals and any required repairs or improvements.

What should buyers and sellers do now?

First-time buyers should monitor further announcements about the Your First Home scheme and FTB ISA. In the meantime, they can review their finances, check their credit position and speak to a mortgage adviser about how much they may be able to borrow.

Existing homeowners considering a move may benefit from arranging a valuation. Understanding your property’s likely market value can help you assess your equity and establish a realistic budget for your next home.

Our local property experts can provide advice on buyer demand, recent sales and current market conditions in your area.