Autumn Budget 2026: What It Means for Landlords, Buyers and Homeowners

The Chancellor has delivered his Autumn Budget, and there is plenty in it for anyone involved in property. Landlords face a further rise in tax on rental income. First-time buyers get new support to help them onto the ladder. Owners of high-value homes will pay a new council tax surcharge.

Here at Pacey Wingent Dickson, we've summarised the key announcements and what they could mean for you, whether you're a landlord, a buyer or a homeowner in Surrey.

Landlords: a further rise in tax on rental income

Last year, the, then Chancellor announced a 2 percentage point increase in income tax on property income from April 2027. In this Budget she has added a further 2 percentage point rise. Once both increases are in place, the rates on property income will be:

What this could mean in practice: a landlord with £10,000 of taxable rental profit would pay around £400 more in tax each year, whichever tax band they are in.

This comes on top of several years of changes that have already squeezed landlords' returns. We share the concern of industry bodies that the cumulative effect could discourage new landlords and lead some existing landlords to leave the market. That in turn could reduce the supply of rental homes and put further pressure on rents.

What landlords can do now:

• Review your rental income and costs with your accountant ahead of the changes.
• Make sure you're claiming every allowable expense, such as letting fees, repairs, insurance and safety certificates.
• Check that your rent is in line with the local market. We're happy to provide a free rental valuation.

First-time buyers: new help to get onto the ladder

There was good news for first-time buyers, with two new schemes announced.

First Home Scheme

A new £4.7 billion scheme will offer first-time buyers in England an equity loan of 20% of the purchase price.

• Deposits from just 2.5%
• Interest-free for the first five years
• Income caps: £110,000 outside London and £140,000 in London
• Price caps: up to £500,000 in outer London and £650,000 in inner London
• Timeline: pre-registration opens by December 2026, applications open from February 2027, and the first loans will be made from April 2027

First-Time Buyer ISA

From April 2029, the First-Time Buyer ISA will replace the Lifetime ISA for new savers. It will offer a 25% government bonus towards a first home costing up to £450,000, with the bonus capped at £20,000.

If you're thinking about buying your first home in 2027, now is a good time to start planning. Get your finances in order and register your interest in the scheme once pre-registration opens.

Homeowners: council tax surcharge and energy support

High Value Council Tax Surcharge

From April 2028, owners of homes in England worth £2 million or more, based on April 2026 values, will pay a new High Value Council Tax Surcharge. This will be in addition to normal council tax. The owner pays it rather than the occupier, so landlords with high-value rental properties will be affected too.

With many higher-value homes across Surrey, this will be relevant to a number of local owners. If your property is close to the £2 million mark, it's worth knowing where it sits, and we can provide a free market appraisal.

Household Energy Payment

From January 2027, households in council tax bands A to D in England will receive a £100 Household Energy Payment, paid directly into their bank accounts.

Other key measures

• National Living Wage (from April 2027): £13.21 an hour for those aged 21 and over, £11.27 for 18 to 20 year olds, and £8.31 for under-18s and eligible apprentices.
• Business rates: from April 2027, qualifying retail, hospitality and leisure businesses in England will benefit from higher Small Business Rate Relief thresholds and a two-year real-terms freeze on business rates bills. Relief for pubs, social clubs and eligible music venues will also increase.
• Business Asset Disposal Relief: the lifetime limit will fall from £1 million to £500,000 from April 2027. This may affect business owners planning to sell or exit their business, including those with commercial property.
• Writing-down allowances: the main rate for qualifying business assets will fall from 14% to 12%.
• Parental pay for the self-employed: from April 2029, eligible self-employed fathers, partners and adopters will be able to claim a new Parental Allowance.
• Rough sleeping: a further £432 million will fund the off-the-streets programme in 2027-28 and 2028-29.

Our view

The support for first-time buyers is welcome. The First Home Scheme in particular should help more people to buy, which is good news for sellers and for movement across the whole market.

We're concerned, though, about the continued pressure on landlords. Higher taxes on rental income risk pushing more landlords out of the market at a time when tenants already face a shortage of good quality homes to rent. A healthy housing market needs a joined-up approach that supports homeowners, landlords and tenants alike.

How we can help

Whether you're a landlord reviewing your portfolio, a first-time buyer planning your next step or a homeowner thinking about selling, our team is here to help. Get in touch with Pacey Wingent Dickson for a free, no-obligation valuation or a chat about what the Budget means for you.

This article is a summary of the Budget announcements and is not financial or tax advice. Please speak to an accountant or financial adviser about your own circumstances.