Autumn Budget 2026: what it means if you’re buying or selling
In Summary…
Your First Home lets first-time buyers purchase a new-build home with a 2.5% deposit and a 20% government equity loan, interest-free for five years. Pre-registration opens before the end of December 2026, and the first sales follow from April 2027. Lifetime ISA holders can use their savings on homes above £450,000 from 29 October 2026, with a reduced 20% withdrawal charge. That matters in Chandlers Ford, where many homes sit above that figure. A First Time Buyer ISA replaces the Lifetime ISA from April 2029, and the £20,000 cash ISA allowance is kept. Sellers of starter homes should expect more competition from new builds sold through Your First Home, which only covers new-build properties. Pricing and presentation will matter. No broad-based tax rises: headline rates of income tax, National Insurance and VAT are unchanged.
Here is our detailed guide to what was announced and what it means for your move in Hampshire and beyond.
Your First Home: how the new scheme works
The government is launching Your First Home, a scheme to help first-time buyers purchase a new-build home in England with a smaller deposit and a smaller mortgage. It is backed by £4.7bn over five years and is expected to help around 70,000 households.
| Feature | Detail |
|---|---|
| Eligible homes | New-build homes in England from participating developers, bought as your main home |
| Minimum deposit | 2.5% of the purchase price |
| Equity loan | 20% of the purchase price |
| Equity loan interest | 0% in years 1 to 5, 1.5% in year 6, 3% from year 7 |
| Household income cap | £110,000 outside London |
| Property price cap | Set by local authority area (Reading, for example, is £375,000) |
| Pre-registration | Before the end of December 2026 |
| Applications | From February 2027 |
| First sales | From April 2027 |
You own your home outright from the day you complete. The government is not a joint owner or your landlord.
What it looks like in practice
The government’s own example uses a £300,000 new-build home. The buyer puts down a £7,500 deposit, the government lends £60,000, and the buyer takes out a £232,500 repayment mortgage. With a standard 95% mortgage, the same buyer would need a £15,000 deposit and a £285,000 mortgage.
Assuming a 30-year repayment mortgage at 5%, monthly costs compare like this:
| Period | Standard 95% mortgage | Your First Home (mortgage plus equity loan interest) |
|---|---|---|
| Years 1 to 5 | £1,530 | £1,248 |
| Year 6 | £1,530 | £1,323 |
| From year 7 | £1,530 | £1,398 |
These are the government’s illustrative figures and exclude fees, insurance, council tax and service charges. The price cap for the Hampshire area has not yet been published, so be sure to keep a close eye out for this information in due course.
We’re excited to see this support for would-be homebuyers – halving the deposit and saving around £282 a month in the early years is the most meaningful support for first-time buyers since Help to Buy. But buyers should plan for costs rising from year six, and take independent financial and legal advice before committing.
New ISA rules for deposit savers
The Budget also changes how first-time buyers save:
- From 29 October 2026, Lifetime ISA savers can use their funds to buy a home above £450,000, paying a reduced 20% withdrawal charge. Until now, buying above that cap meant a higher penalty.
- From April 2029, a new First Time Buyer ISA replaces the Lifetime ISA. It keeps the £4,000 annual limit and 25% government bonus, covers homes up to £450,000, and has no upper age limit.
- The £20,000 cash ISA allowance is kept, after a planned cut to £12,000 was reversed.
The Lifetime ISA change is a quiet but important win for movers. Prices for family homes and larger properties here often sit above £450,000, so savers who felt locked out of using their Lifetime ISA locally now have more options.
What it means for Hampshire sellers
It is important to be clear about who benefits. Your First Home only covers new-build homes, so it will not directly fund the purchase of existing homes in Chandlers Ford and broader Hampshire.
For sellers of flats and starter homes, that means more competition from new-build developments in the area, where first-time buyers can purchase with just a 2.5% deposit. From spring 2027, sellers in that part of the market will need to price realistically and present their homes well to stand out.
For sellers of family homes, the Budget is more helpful. From 29 October 2026, buyers can use Lifetime ISA savings on homes above £450,000, with a reduced 20% withdrawal charge. In a market like ours, where many family homes are priced above that level, this gives some buyers more flexibility.
If you are planning to sell in 2027, use the winter to get ready. A valuation now tells you where you stand against both local resales and new-build competition, and it gives you time to prepare your home before spring. Book a free valuation with Rowe & Co.
Household bills: breathing space this winter
The Budget focused heavily on living costs, which should help buyers’ budgets:
- The VAT cut on electricity is extended to July 2027, worth around £50 off the annual price cap.
- A £100 Household Energy Payment will be paid into bank accounts from January 2027 for households in council tax bands A to D in England.
- Gas standing charges will be abolished from 2027.
- The 5p fuel duty cut is extended to 1 July 2027, helping commuters along the M3 and M27.
- Tax-free mileage rates for people who drive for work are permanently increased.
- The National Minimum Wage and National Living Wage rise by 3.9%.
Energy efficiency is also becoming more important to buyers. A new Warm Homes loans scheme gives homeowners access to low-interest and interest-free finance for solar panels, batteries and heat pumps.
The wider picture: interest rates and the economy
The conflict in the Middle East has pushed up borrowing costs across every G7 country, and the UK is expected to pay an average of £14bn a year more in debt interest than forecast in the spring.
But there are positive signs. The Office for Budget Responsibility has upgraded its 2026 growth forecast to 1.2%, and the economy grew 0.7% in the three months to August. The Chancellor also ruled out broad-based tax rises, with no change to the headline rates of income tax, National Insurance or VAT.
This is important considering that government borrowing costs influence fixed-rate mortgage pricing. A Budget that sticks to fiscal discipline should help keep markets steady, which is good news for buyers. If you are planning a move, speak to a mortgage adviser early so you know what you can borrow.
New homes and lettings
The Budget includes several measures to support house building:
- No major changes to building regulations for the rest of this Parliament, except for building safety.
- Smaller residential brownfield sites, up to 1.5 hectares, will be exempt from Biodiversity Net Gain requirements.
- An extra £1.5bn for social and affordable housing will deliver around 10,000 homes.
Your First Home is likely to make new-build homes a much bigger part of the first-time buyer market from spring 2027, with developers of all sizes able to take part. For landlords, income tax on property income rises by two percentage points from April 2027, to 22%, 42% and 47% depending on your tax band.
Thinking of moving across Hampshire?
This Budget gives buyers and sellers a much clearer picture for 2027. Whether you are buying your first home, moving up or downsizing, the Rowe & Co team knows the Chandlers Ford market inside out.
Get in touch with Rowe & Co for a free valuation or a chat about your plans.
Frequently asked questions
How does Your First Home work?
Your First Home helps first-time buyers purchase a new-build home in England with a 2.5% deposit and a 20% government equity loan. The loan is interest-free for five years, then charged at 1.5% in year six and 3% from year seven. Existing homes are not eligible.
When does Your First Home open?
Pre-registration opens before the end of December 2026, applications open in February 2027, and the first sales are expected from April 2027.
Can I use my Lifetime ISA on a home over £450,000?
Yes. From 29 October 2026, you can use Lifetime ISA funds on a home above £450,000 if you meet the other qualifying rules, with a reduced 20% withdrawal charge.
Should I wait until 2027 to buy?
Not necessarily. Waiting may make sense if you want a new-build home and would qualify for Your First Home, but it does not cover existing homes. Prices, mortgage rates and your circumstances all matter, so a mortgage adviser can help you decide.
Who gets the £100 Household Energy Payment?
Households in council tax bands A to D in England will receive £100 into their bank accounts from January 2027. Up to 20 million households are expected to benefit.
About this article
This article was written and published on 28 October 2026, the day of the Autumn Budget. It draws on HM Treasury’s Budget 2026 document, the government’s Your First Home guidance, the Chancellor’s Budget speech, the Office for Budget Responsibility’s forecasts, and announcements on gov.uk.
The information is correct at the time of publication. Budget measures may change as they pass into law, and some details, such as local price caps, are still to be published. Figures in our worked example are for illustration only. This article is general information only and is not financial, mortgage, tax or legal advice. Speak to a qualified mortgage adviser, accountant or solicitor about your own circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.
