The Chancellor finished speaking this afternoon, and for once a Budget had real property
content in it. Not a line buried on page ninety of a document nobody reads. Actual changes to
how people save for a first home, what landlords pay, and what lands in bank accounts this
winter.
Some of it starts today. Some of it is eighteen months away. Here is what was announced on 28
October 2026, who it touches, and when it actually bites.
What did the Budget change for your home?
Five things, in the order they matter to most people.
1. The Lifetime ISA is being replaced by a first-time buyer ISA, and the penalty that has quietly
punished savers is being dealt with from today.2. A new government equity loan scheme called Your First Home arrives next spring, with 4.7
billion pounds of government-backed lending behind it.
3. Tax on income from property goes up by a further two percentage points from April 2027.
4. Three separate pieces of help on energy bills, one of which is paid straight into bank
accounts this winter.
5. More money for social housing, and a promise to stop moving the goalposts on building
regulations.
There was no change to stamp duty in the statement, and no new tax on rental income beyond
the rate rise above. If you had been reading the speculation for the past month, that is worth
knowing on its own.
Is the Lifetime ISA being scrapped?
Yes. The Chancellor confirmed that a first-time buyer ISA will replace the Lifetime ISA. The more
immediate news is the second half of what he said, because it applies from today.
A quick explanation for anyone who has never had one. A Lifetime ISA lets you save towards a
first home and the government adds a bonus on top. The catch has always been the price cap. If
the home you end up buying costs more than the limit, you are charged on the way out, and that
charge has taken people below what they originally put in. Savers have been penalised for the
simple crime of their local market rising faster than a cap that barely moves.
From today, that stops. The Chancellor’s words were that if the home you want costs more than
the limit, you will get back at least what you put in. So the worst case becomes breaking even
rather than losing money you saved yourself.
He also confirmed that the planned cut to the cash ISA allowance is not going ahead. The limit
stays at 20,000 pounds a year, tax free, for savers of all ages. If you are building a deposit in a
cash ISA, nothing changes for you.
What is the Your First Home scheme?
It is a government equity loan for first-time buyers who do not have family money behind them,
starting next spring. The Chancellor put 4.7 billion pounds of government-backed lending behind
it in the statement.
The shape of the scheme was set out by government in September. A buyer puts down a deposit
of 2.5 per cent, the government lends up to 20 per cent as an equity loan, and a mortgage
covers the rest. There is an initial interest-free period, a household income cap and local
property price caps. The exact numbers sit in the Budget documents rather than the speech.
One thing to be clear about, because it decides whether this is relevant to you. It is a new-build
scheme, and the home has to come from a developer signed up to it. If you have your heart set
on a Victorian terrace, this is not your route. If you have been priced out by the deposit rather
than the mortgage, it might be the most useful thing in the whole Budget.
What does the Budget mean for landlords?
The rate of tax on income from property rises by a further two percentage points from April 2027.
That was stated plainly, alongside savings income, and the Chancellor was equally plain that
there is no change to tax on income from employment and no change on dividends.
The word he used was further, which signals this sits on top of changes already in train for that
date. The precise rates will be in the Budget documents rather than the broadcast, so this is a
conversation to have with your accountant with the paperwork in front of you.
What we would say, having watched landlords react to every Budget for years, is that April 2027
is eighteen months away. That is planning time, not panic time. The worst decisions we see are
made in the week after an announcement, on a headline, by someone who has not yet seen the
detail or run their own numbers.
What help is coming on energy bills?
Three measures, and the first one arrives soonest.
1. A 100 pound energy payment for 20 million households in council tax bands A to D, paid
directly into bank accounts this winter. The Chancellor described it as a 2.6 billion pound
scheme.
2. The VAT cut on electricity extended through the winter and spring to July, which he said
takes 50 pounds off the annual price cap.
3. Gas standing charges removed from household gas from next year. He noted those charges
cost people over 100 pounds a year regardless of how much gas they actually use.
The Scottish, Welsh and Northern Irish governments receive their share of the funding, and the
Chancellor called on them to pass it on in the same way.
Why this sits in a property blog at all. Running costs have moved from an afterthought to one of
the first questions buyers and tenants ask us. Standing charges in particular punish anyone with
a small home or a low usage pattern, because they are charged whether you burn the gas or
not. Taking them off is a structural change, not a one-winter handout.
Will any of this get more homes built?
Slowly, and the most useful measure is the one that sounds the most boring.
- An additional 1.5 billion pounds for the social and affordable housing programme, taking the
total government commitment behind council housing to 40 billion pounds.
Cheaper borrowing extended for councils, and land sold to social housing providers made
VAT free. - No major changes to building regulations in this Parliament, except where it is critical for
safety. - Biodiversity requirements removed for more brownfield sites.
That third point is the quiet one. Builders have spent years pricing schemes against a rulebook
that kept moving, and the cost of that uncertainty gets paid by whoever buys the house at the
end. A settled set of rules for a whole Parliament is worth more to supply than most funding
announcements.
For context on why any of this was in the speech, the Chancellor told the Commons that more
than 170,000 children will sleep in temporary accommodation tonight.
So what should you do about it?
1. Saving for a first home in a Lifetime ISA. Do not move your money anywhere in a hurry. The
change announced today is in your favour. Read the detail, or ask an adviser, before you
touch the account.
2. Buying your first home next year. Your First Home is new-build only, so it is worth asking
local developers now which of them intend to sign up. The ones that do will be fielding that
question from everybody by the spring.
3. Letting out a property. Put a date in the diary with your accountant once the Budget
documents are published. Eighteen months is enough time to restructure properly if that
turns out to be the right answer for you.
4. Everyone in council tax bands A to D. The 100 pound energy payment goes into your bank
account automatically. Nobody will ring, text or email you to collect your details for it. Anyone
who does is running a scam, and these announcements are always followed by a wave of
them.
That last point is the one we would most like you to pass on. Every time a payment like this is
announced, the scam texts follow within days, and they are convincing because the scheme is
real.
Frequently asked questions
When does the new first-time buyer ISA start?
The replacement of the Lifetime ISA was confirmed in the Budget statement on 28 October
2026. The change to the penalty applies from today. The full timetable and the savings limits sit
in the Budget documents.
Do I need to apply for the 100 pound energy payment?
No. For households in council tax bands A to D it is paid directly into bank accounts. Nobody
needs your details to arrange it, so treat any message asking for them as a scam.
Has stamp duty changed in this Budget?
No stamp duty change was announced in the Budget statement.
Does the property income tax rise affect property held in a company?
The statement referred to the rates of tax on income from property. How that applies depends on
how you hold the property, so check with your accountant once the Budget documents are
published.
Can I use Your First Home on an older property?
No. As set out by government in September, it applies to a new-build home bought from a
developer signed up to the scheme.
If you are weighing up a move off the back of any of this, we are glad to talk it through with no
obligation and no pressure. Sometimes the useful answer is that this Budget changes nothing for
you, and we would rather tell you that than sell you something.
This article is for general information only and does not constitute financial or legal advice.
Always consult a qualified adviser about your own circumstances.
If you know someone saving for a first home, letting out a property, or just worried about this
winter’s bills, please share this with them.
What the EAN logo means for you
We are proud to be part of the Ethical Agent Network (EAN), a national network of independent
agents who have been independently checked against strict standards of honesty and service.
You cannot pay your way in. It has to be earned, and it can be taken away. That is your
reassurance that we do the right thing by you, even when no one is watching. If you would like to
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www.ethicalagentnetwork.co.uk.
Sources: Budget statement to the House of Commons, 28 October 2026 (broadcast transcript of the
statement as delivered). Your First Home scheme structure: GOV.UK, “New first-time buyer scheme to be
confirmed at Budget”, 26 September 2026. Checked 28 October 2026. Final figures, rates and timetables
will be confirmed in the published HM Treasury Budget documents
