A guide to how the budget works, what is being talked about and what it could mean for you.
What is the Autumn Budget?
The autumn budget, is on Wednesday 28th October 2026, at around 12:30pm.
If you own a home, rent one or you are saving for your first home - here is what is worth you knowing. There is always noise around the budget but this one specifically, we are hearing about Mansion Taxes, The First Homes Schemes, Stamp Duty rumours. We want to clear that up, this guide will look at what has already been decided, how the budget works and what it all potentially means for you and your costs.
When Andy Burnham stepped up as Prime Minister on 20th of July, he made John Healy his Chancellor the same day (he replaces Rachel Reeves) - this budget is the first time we will see exactly how our new Government plans to tax and spend.
How does the Budget work?
It is basically the Government's yearly plan for tax and spending, it is broken down into three main sections.
- The Speech: The Chancellor (John Healy) will run through the headline changes in the House of Commons. This is usually what you see on the news.
- The Budget Documents: The Treasury publishes the detail at the same time: exact rates, thresholds, and most importantly, when each change starts. If something affects you, it will be documented here.
- The OBR Forecast: The Office for Budget Responsibility, which is a independent watchdog will pushing it's view on how this budget will affect how the economy will grow, how much the Government will borrow and whether or not it's sticking to its own rules.
Even though the discussion is held on the 28th of October, most of the changes won't kick in until the beginning of the new tax year, April. However, some of the changes may take longer than that, historically years.
Every year in the budget, we hear rumours and headlines fill up with leaks, expect to see "sources say" stories and idea's floated to see how people react. One thing to remind you of: If it is not in the Budget Documents with a start date - it's not happening yet.
What is already confirmed for housing in the Autumn Budget 2026
If you like certainty, a lot of the questions have already been answered before the Budget day.
Stamp Duty
No change for stamp duty this time. There was some discussions around the Government scrapping stamp duty or potentially roll it together with council tax into one yearly property tax. Burnham previously backed ideas like a land value tax, but this year in late July he ruled out changing or scrapping stamp duty at this budget and the Government has denied plans to merge it with council tax.
However, this promise only covers this budget and just because they haven't "scrapped" it, doesnt always mean that they won't tweak it or change it.
The Your First Home Scheme
This is a big change, for First Time Buyers. On the 26th of September, Your First Home was announced which bares resemblance to the Help to Buy that was previously available. This only applies to England and for a new home only - so if you want to buy a new build in England, then you could be eligible to be a part of the scheme which allows you to buy a new-build home with a 2.5% deposit + a 20% Government equity loan and a mortgage on the remaining 77.5%
The equity loan should be interest-free to begin with (reports suggest five years, which is similar to the Help to Buy), there will also be a household income cap and a local prices cap but we are awaiting the details of this being announced on the Budget day.
The First Time Buyer ISA
The first Time Buyer ISA is being replaced by a new version - this was announced on the 9th of September. The reported headline change is that there is no penality for taking your money out, currently it stands at 25% if you withdraw anything from the ISA for anything other than a first home or retirement.
It could launch as early as April 2027 and you'll be able to move your current Help To Buy ISA into it but you would not be able to move your Lifetime ISA.
The Mansion Tax Starts In 2028
At last years budget, Reeves announced a High Value Council Surcharge (Mansion Tax) From April 2028, homes in England worth more than £2 million will pay an extra £2,500 - £7,500 a year.
Landlords Will Pay More Tax On Rent
From April 2027, income tax on rental profits for individual landlords will be increasing by two percentage points but Landlords who own through a limited company, won't be affected, because they pay corporation tax instead. This usually hints to us that rent will also increase, because as landlords' costs go up, rents usually follow.
Energy Bills: No VAT On Electricity (for now)
Since October 1, there has been no VAT on household electricity (previously, it was 5%) The Government says that the average home saves around £45 per year, Gas still has 5% VAT. The cut is only funded until 31st March 2027 but whether it carried on will be decided at the budget.
The Housing Costs The Budget Won't Fix
- Mortgage Rates. The Bank of England base rate is 3.75%. When this was discussed in September, three of the nine committee members voted to raise it to 4%. Average two-year and five-year fixed rate are both currently just under 6%.
- The Next Rate Decision. This is taking place on November the 5th, a week after the budget. If you are remortgaging, this is important to consider.
- Rents. The Average UK private rent hit £1,400 a month in August, according to the ONS, with growth at its fastest since late 2025. Renters in the UK spend around 32% of their income on housing, with the number reaching 40% in London.
- The Renters' Rights Act. This has been in place since May, whilst it gives tenants more security, some say that it is pushing rents up.
What the Autumn Budget means for Wales and Scotland
- Stamp Duty only applies in England and Northern Ireland. In Wales you pay Land Transaction Tax and Scotland it is LBTT. Both of these are set by the devolved Governments, so a stamp duty change (in England) won't affect Wales or Scotland.
- Council Tax is run separately too. Mansion Tax only applies to homes in England, in Wales homes haven't been revalued since 2003.
- Your First Home is for England only.
- The UK Budget still matters, wherever you live. It sets Capital Gains Tax, Landlord Income Tax, VAT on energy and the funding that goes to the devolved governments.
What should you do before the Budget?
- Don't make any big moves based on a rumour. Rushing to buy, sell or restructure your portfolio to beat the budget could cost you more, than the change that your trying to avoid will.
- Remortgaging soon? Put the 5th of November in your diary, if your deal ends in the next 6 months - speak to a broker about locking in a rate early.
- Landlords, plan around what's confirmed (the April 2027 tax rise)
- Check out the GOV.UK budget documents on the day - don't follow the headlines completely. If there is no start date for a change, it's not 100% happening.
- Future First Time Buyers, keep paying into your Lifetime ISA or Help To Buy ISA as normal. If you are looking to buy a new build in England, it may be worth waiting for the Your First Home details on 28th of October before you go ahead.
Autumn Budget FAQ's
When is the Autumn Budget?
Wednesday the 28th of October, around 12:30pm.
Is the Stamp Duty Changing?
No. The Prime Minister has ruled out changing the budget at the time.
What is the Your First Homes Scheme?
A new scheme for first-time buyers in England. You can buy a new-build home with a 2.5% deposit and a 20% Government equity loan. Full details to follow in the budget.
Is the Lifetime ISA being scrapped?
It's being replaced by a First Time Buyer ISA, with no withdrawal penalty, which could launch for April 2027.
Will the mansion tax threshold be lowered?
It's not confirmed. The surcharge starts in April 2028 for homes in England worth over £2 Million, but there is speculation that this could drop to £1.5 Million.
Will the Budget affect mortgage rates?
Mortgage rates follow the Bank of England, whose next decision is on the 5th of November (a week after the Budget).
Does the Autumn Budget affect housing in Wales?
It can. Wales has its own LTT (Land Transaction Tax) and council tax, so stamp duty and mansion tax changes don't apply. But UK wide changes, such as Capital Gains Tax, Landlord Income Tax and VAT on energy will apply.
This guide is for general information only, it is not financial or tax advice. Anything marked as a rumour may or may not happen.