What does the budget mean for property owners?
Last updated: October 2026
The Autumn Budget, announced on 28 October 2026, has brought some important changes for the property market, with announcements affecting landlords, first-time buyers, homeowners and tenants.
From higher taxes on rental income to new support for first-time buyers and help with household energy bills, there is plenty to consider.
At Wrights Residential, we've taken a closer look at the key announcements and what they could mean for property owners and households across Wiltshire and the surrounding areas.
1. Higher Taxes on Rental Income from April 2027
Perhaps the most significant announcement for private landlords is a further increase in the tax payable on rental profits.
From 6 April 2027, the government plans to introduce the following property income tax rates:
| Tax Band | New Property Income Tax Rate |
|---|---|
| Basic rate | 24% |
| Higher rate | 44% |
| Additional rate | 49% |
What Does This Mean for Landlords?
For landlords who own rental properties personally, the changes could reduce the amount of rental profit they retain after tax.
For example, a landlord with £10,000 of taxable rental profit falling entirely within the new higher-rate property income band would face a tax liability of £4,400 on that profit, compared with £4,000 at the former 40% main income tax rate.
This is a simplified illustration. Actual tax liabilities will depend on individual circumstances, allowances, other income and applicable reliefs.
With maintenance, mortgage costs and compliance responsibilities already important considerations, now is a sensible time to review your property's financial performance and discuss the forthcoming tax changes with a qualified accountant.
2. New Support for First-Time Buyers
There was more encouraging news for people hoping to purchase their first home.
The government announced a new £4.7 billion Your First Home scheme, intended to help approximately 70,000 first-time buyers in England.
The scheme will provide eligible buyers with government equity loans of up to 20% of the purchase price, alongside a reduced deposit requirement and a five-year interest-free period.
The scheme is intended to begin in April 2027. Eligibility criteria and property restrictions will apply.
What Could This Mean for the Property Market?
Helping more people onto the housing ladder could encourage additional first-time buyer activity. Although the scheme is focused on eligible properties, increased access to homeownership may also support movement within the wider housing market.
3. Changes to First-Time Buyer Savings
The Budget also announced changes to the way prospective buyers can save towards their first home.
A new First Time Buyer ISA is planned for April 2029, replacing the Lifetime ISA for new savers.
The proposed account will allow contributions of up to £4,000 per year, with a 25% government bonus towards an eligible first-home purchase. The maximum bonus will be capped at £20,000.
Existing Lifetime ISA holders will be able to continue contributing to and using their accounts under the existing arrangements.
From 29 October 2026, the withdrawal charge for existing Lifetime ISA holders using their savings to purchase a first home above the £450,000 property price cap will also be reduced from 25% to 20%.
Anyone planning their first purchase should check the relevant eligibility rules and seek independent financial advice where appropriate.
4. £100 Energy Payment for Households in Council Tax Bands A–D
One of the Budget's most relevant announcements for homeowners and tenants is the new £100 Household Energy Payment, designed to help with rising energy costs.
From January 2027, eligible households in England living in properties within Council Tax bands A to D will receive a one-off payment of £100.
The scheme is expected to support up to 20 million households.
Who Will Qualify?
The payment will be available to eligible households who live in a property in Council Tax bands A to D as their main home and are responsible for the Council Tax.
This includes eligible tenants as well as homeowners. Most households exempt from Council Tax are also expected to qualify, subject to the final eligibility rules.
How Will Households Receive the Payment?
- Paying Council Tax by Direct Debit? The payment should be made automatically into your bank account.
- Paying by another method? Your local council will invite you to apply for the payment.
- Not sure which Council Tax band you're in? You can check using the official government website.
Check your Council Tax band on GOV.UK
Be aware of scams: Only your local council should contact you about claiming the payment. Be cautious of unexpected messages requesting bank details or personal information. If you're unsure whether a message is genuine, contact your council directly.
Further Help with Electricity Bills
The government has also confirmed that the temporary 0% VAT rate on qualifying domestic electricity supplies will be extended until July 2027.
This extension is expected to reduce the annual Ofgem energy price cap by approximately £50 in April 2027, although actual savings will depend on energy consumption and prices.
5. More Investment in Affordable Housing
The government has announced an additional £1.5 billion for social and affordable housing, with the aim of supporting approximately 10,000 additional homes in England.
The funding will prioritise social rent, particularly council housing, and forms part of the wider effort to increase housing supply.
The impact on individual local housing markets will depend on where and when these additional homes are delivered.
6. Changes Affecting Higher-Value Properties
The Budget also confirmed further details of the planned High Value Council Tax Surcharge in England, including proposed arrangements for deferrals, discounts and exemptions.
Measures also include a premium for certain properties left empty and unoccupied for extended periods.
These changes will not affect every homeowner, but owners of higher-value or long-term vacant properties should review the detailed rules as they are introduced.
7. What Does the Budget Mean for Landlords in Wiltshire?
For many local landlords, the most important announcement will be the increase in property income tax from April 2027.
Alongside the changes introduced under the Renters' Rights Act, it provides another reason to review the long-term performance of rental investments.
We would encourage landlords to consider:
- Rental income: Is your property achieving an appropriate market rent?
- Ongoing costs: Have you allowed for maintenance, insurance, mortgage costs and future expenditure?
- Property condition: Are you keeping on top of repairs, safety requirements and energy efficiency?
- Tax planning: Have you discussed the forthcoming changes with your accountant?
- Professional management: Would support with compliance, maintenance and tenancy administration make managing your investment easier?
At Wrights Residential, we've been helping landlords across Trowbridge, Wiltshire and the surrounding areas for 20 years.
Whether you own one rental property or a larger portfolio, our experienced team can help you understand the local rental market, review your property's rental value and manage the day-to-day responsibilities of letting.
We're Here to Help
Thinking of letting, selling or reviewing your property investment?
Our friendly local team would be delighted to offer straightforward advice and help you plan your next move.
Disclaimer: This article provides general information based on government announcements made on 28 October 2026. It does not constitute financial, legal, mortgage or tax advice. Announced measures may be subject to legislation, eligibility requirements or further government guidance. Individual circumstances will vary, and readers should seek advice from suitably qualified professionals before making financial or property investment decisions.
Sources: HM Treasury – Budget 2026 | Government guidance on household energy support
