With Chancellor John Healey delivering his first Budget, we look at what has been confirmed, what remains unchanged and what the announcements could mean for buyers, sellers and landlords across North Hampshire, Surrey and Berkshire.
One of the key outcomes for the property market is that Stamp Duty Land Tax (SDLT) rates and thresholds remain unchanged.
Before the Budget, there had been speculation about possible reforms to help stimulate the housing market. However, buyers will continue to face the existing Stamp Duty costs when purchasing a property in England.
First-time buyers currently pay no Stamp Duty on the first £300,000 of a qualifying purchase, with a reduced rate of 5% applying to the portion between £300,001 and £500,000. Standard rates apply to other buyers, while higher rates generally apply to additional residential properties.
When homeowners delay moving because of the associated costs, this can affect the wider housing chain, limiting opportunities for other buyers and sellers. Whilst the Budget provides certainty over current Stamp Duty rules, it does not address these concerns. Reform remains an important consideration if the Government wants to encourage more people to move when their circumstances change.
There had been speculation ahead of the Budget that Capital Gains Tax (CGT) could increase. However, the headline rates remain unchanged at 18% for basic-rate taxpayers and 24% for higher- and additional-rate taxpayers.
CGT can be relevant to property owners selling assets that have increased in value, including second homes and investment properties. It does not normally apply to the sale of a person’s main home where Private Residence Relief is available.
Your First Home equity-loan scheme
The Government has confirmed £4.7 billion in funding for its Your First Home scheme, which aims to help around 70,000 households in England onto the property ladder. The scheme is intended for eligible first-time buyers purchasing a qualifying new-build home from a participating developer.
Buyers will be able to put down a deposit of just 2.5% of the purchase price, alongside a repayment mortgage and a government equity loan of up to 20%. The equity loan will be interest-free for the first five years, potentially reducing monthly mortgage costs compared with a standard mortgage requiring a smaller deposit.
Applications are expected to open in February 2027, with further details on eligible properties, participating developers and lenders to follow. Income limits and local property price caps will apply, so it’s important for buyers to check their eligibility.
A new First Time Buyer ISA
The Budget also confirmed a new First Time Buyer ISA, due to launch in April 2029. It will replace the Lifetime ISA for new savers, offering a 25% Government bonus on qualifying savings used to buy a first home worth up to £450,000.
Savers will be able to contribute up to £4,000 a year, with the bonus paid when the money is withdrawn for an eligible purchase. The maximum bonus will be £20,000. Existing Lifetime ISA holders will be able to continue using their accounts under the current rules.
There is also a change for existing Lifetime ISA holders buying a property above the £450,000 price cap. From 29 October 2026, the withdrawal charge for an otherwise qualifying purchase will fall from 25% to 20%, helping to protect the value of their contributions.
These measures aim to help offer additional routes towards homeownership.
Increasing the supply of homes remains a challenge for the Government, and the Budget included measures with the intension of making development easier.
The stated direction is to avoid introducing additional building regulation requirements unless they address critical safety issues, alongside limiting further biodiversity requirements for brownfield sites. Brownfield land includes previously developed sites that may be suitable for regeneration and therefore new housing.
Although there were previous discussions around removing regulations to speed up developments, it’s possible that reducing unnecessary costs and delays could improve the viability of some developments, potentially allowing more homes to be built. This is particularly important where planning requirements, construction costs and other development barriers have affected the delivery of new housing.
However, increasing supply involves more than reducing regulation. Suitable land, infrastructure, finance, construction capacity and local demand all influence whether developments proceed.
For buyers, an increase in housing supply could provide more choice over time. For the wider market, the key question is whether these measures translate into additional homes being built where they are needed and with suitable supportive infrastructure.
From 6 April 2027, the Government will increase income tax rates on property income by a further two percentage points, following the increase announced in the 2025 Budget. The resulting rates in England will be:
This represents a four-percentage-point increase across the two Budgets compared with the rates that applied before the changes were announced.
The impact will depend on each landlord’s circumstances, including their income, allowable expenses and wider tax position. Landlords should review their projected rental returns and seek professional tax advice where appropriate, particularly when considering future investment or property sales.
For landlords already weighing up rental demand, maintenance costs and their ongoing responsibilities, understanding the financial implications of these changes will be an important part of planning ahead.
For landlords reviewing their options, taking advice based on their individual circumstances will remain essential. If you’re a local landlord who would like support with rental property or portfolio, feel free to get in touch with our Lettings’ team on 01252 514000.
The Budget also includes support intended to ease household energy costs, with £100 in assistance expected for 20 billion eligible households for this winter.
Lower energy costs could provide some relief for homeowners facing pressure on household budgets. The precise benefit for individual households will depend on the final eligibility criteria.
The Budget has not introduced a new standalone package of home-buying and selling reforms. Instead, the Government’s previously published Home Buying and Selling Reform Roadmap remains the basis for plans to improve the process.
Making transactions more straightforward, reducing avoidable delays and improving the information available to buyers could help people move with greater confidence.
Whilst tax changes can influence the cost of moving, the experience of buying and selling also matters. As we know at Mackenzie Smith, clear communication, appropriate advice and effective coordination between the parties involved can all help transactions progress.
These improvements could play an important part if the Government wants to make the housing market work more effectively for buyers and sellers.
The Budget offers some continuity on property taxation, alongside targeted support for first-time buyers and measures intended to encourage housebuilding.
However, the lack of Stamp Duty reform means that the costs associated with moving home remain a consideration for many buyers and existing homeowners. The impact of the new first-time buyer scheme and housebuilding measures will depend on how they are implemented and whether they make a meaningful difference to affordability and housing supply.
Ultimately, a healthy housing market depends on more than individual tax measures. Affordability, mortgage availability, housing supply and the confidence to move all influence activity.
At Mackenzie Smith, we believe that making it easier for people to move when their circumstances change benefits the wider property market. Whether you are buying your first home, moving to accommodate a growing family, downsizing or reviewing a rental property, the right advice can help you understand your options.
Our teams across North Hampshire, Surrey and Berkshire are here to offer advice tailored to your circumstances.
Thinking of moving or reviewing your property plans? Contact your local Mackenzie Smith branch or request a free, no-obligation property valuation.
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