While it didn’t include any blockbuster announcements for the housing market, the Chancellor’s Autumn Budget has left both buyers and landlords with plenty to think about.
Wyke Financial has broken down the key takeaways, both good and bad, and what they could mean if you’re planning to buy a home, invest in property, or review your existing mortgage.
The not-so-good news
- ‘Mansion tax’ for high-value homes: a new annual tax is being introduced from April 2028 on properties valued at over £2m. While this only aff ects a small portion of the market, it could influence pricing at the top end and disincentivise high-value property ownership in the long term. Some landlords or investors may begin to reassess their portfolios ahead of this change.
- No real support for first-time buyers: many were hoping for new schemes or incentives to help people onto the property ladder, but there was no direct support for first-time buyers in this budget. With affordability still stretched, this feels like a missed opportunity for younger buyers and those renting while trying to save a deposit.
- Landlords could pass on costs to renters: from 2027, tax on property income is increasing by 2%. The general expectation is that landlords will pass this cost onto tenants through higher rents. For those already renting and saving for a home, this creates extra pressure. Our advice? If you’re a tenant thinking about buying, it may be wise to act sooner rather than later, before rent increases erode your deposit savings.
On the landlord side, the increase in income tax might be less painful if the property is held through a limited company structure, where profits are drawn as dividends. If you’re a landlord, this is a good time to speak to both a mortgage broker and tax adviser about whether a limited company setup is right for you.
Positive news for some buyers
- No changes to Stamp Duty: There were no changes to stamp duty in this Budget, which, in a market full of uncertainties, offers a little breathing room for buyers already planning their next move. The current thresholds still apply, and that helps with budgeting and planning, especially for those upsizing or downsizing.
- Rising Minimum Wage could boost aff ordability: the National Living Wage is set to increase, which could have a positive impact on mortgage affordability assessments, especially for first-time buyers and lower-income households. Lenders assess income when working out what you can borrow, so even a modest increase in take-home pay could make a difference.
- Child Benefit cap removed for larger families: the removal of the two-child benefit cap means that families with three or more children may now see increased household income, and with that, an improved affordability profile when applying for a mortgage. This could be particularly helpful for growing families looking to move or secure a better remortgage deal.
What should you do now?
- If you’re a tenant looking to buy: rising rents could eat into your savings. It may be worth reviewing your mortgage options now, while pricing is still relatively stable.
- If you’re a landlord: speak to an accountant about limited company ownership, it might help mitigate tax rises coming in 2027.
- If you’re a homeowner: with no stamp duty changes and rising affordability for some, it’s worth checking whether now’s the right time to move or remortgage.
Budget changes can be confusing, especially when it’s not clear how they apply to you. Whether you’re buying your first home, exploring investment property options, or just want to understand how this budget affects your finances, we’re here to help.
For information or to find out more visit Wyke Financial website.
