Autumn Budget 2026: key tax and property market changes to watch

With the Autumn 2026 Budget fast approaching, individuals and businesses with an interest in the property sector will be looking closely at a number of potential tax and policy changes that could affect the market.

The property sector continues to face challenging market conditions, with economic uncertainty weighing on market activity. Average UK house prices increased by 1.4% in the year to July 2026 compared with growth of 2.8% in the previous year, and whilst rents continue to rise, growth has moderated compared with recent years. At the same time, higher borrowing costs, development finance constraints and planning challenges continue to affect activity across both residential and commercial property markets.

For many businesses and individuals, the significance of the Budget lies not only in specific tax changes that may be announced but also in the direction it provides on future policy. For longer term investments and property projects, greater certainty can be as valuable as a tax reduction or relief.

What could the Autumn Budget 2026 mean for first-time buyers

Recent announcements continue to highlight the government’s ambition of boosting activity within the property market. Housing was a significant feature of Andy Burnham’s speech at the Labour Party Conference 2026, in which he emphasised improving access to home ownership with the proposed “Your First Home” scheme. Details reported to date suggest qualifying purchasers could buy their home with a deposit of 2.5%, supported by a government-backed equity loan worth up to 20% of the property’s value.

Developers will also be watching closely. Measures that support demand for new-build housing may encourage additional development activity, although the success of any such initiative will almost certainly depend on the wider planning and construction environment.

Will the Autumn Budget 2026 change stamp duty for property buyers and investors?

Stamp Duty Land Tax (SDLT) is one of the taxes most closely associated with the property market and has frequently been used by governments seeking to stimulate activity.

• During the financial crisis in 2008, the Labour government temporarily increased the SDLT nil-rate threshold from £125,000 to £175,000. Two years later, temporary relief was introduced for certain first-time buyers purchasing properties worth up to £250,000.
• More recently, the Conservative government introduced the temporary SDLT holiday during the COVID-19 pandemic, increasing the nil-rate threshold to £500,000 before gradually withdrawing the relief. Further SDLT changes followed, including increases to SDLT thresholds and enhancements to First Time Buyers’ Relief.

The repeated use of SDLT reliefs in previous Budgets means it remains a topic of speculation, despite Prime Minister Andy Burnham’s confirmation that sweeping changes to SDLT were off the table.

If additional reliefs were introduced the impact may not be straightforward. Previous SDLT holidays have demonstrated that tax savings can, at least in part, become reflected in higher property values and as a result tax reductions do not necessarily translate into equivalent long-term savings for purchasers.

For investors and developers, SDLT remains a significant transaction cost. Any reduction could improve investment appraisals and support activity in sectors where higher financing and construction costs have reduced viability.

While significant SDLT changes appear unlikely at this Budget, smaller or temporary changes remain a possibility and SDLT will be a topic closely followed during the Budget by those with an interest in the property sector.

High-value property taxes: could the mansion tax be expanded?

At the other end of the property market, the proposed High Value Council Tax Surcharge (HVCTS) continues to draw focus.

The surcharge, often referred to as a “mansion tax”, is currently expected to apply from April 2028 to residential properties in England valued at £2 million or more. There has been speculation that that a £1.5million threshold may be considered. Although Andy Burnham previously commented on the surcharge being a “correct step to address broader inequalities in property taxation,” more recent reports indicate a reduction of the threshold now appears less likely.

Unlike SDLT which arises on acquisition, HVCTS represents an ongoing cost of ownership. This will be an important distinction for those involved in the higher-value property market, and may influence decisions relating to occupation, ownership structures, succession planning and the retention of higher-value properties. The full details of the scheme will need to be known before appropriate planning can be put in place, but it seems inevitable that the surcharge will have an effect on at least part of the property market.

More broadly, the proposed introduction of HVCTS may indicate a greater emphasis on the taxation of property ownership, alongside existing transaction taxes, particularly for higher-value residential properties.

Could the Autumn Budget 2026 increase taxes on holiday lets and second homes?

There has been speculation that holiday lets could be treated more like second homes for council tax purposes, rather than benefiting from the current, often more favourable treatment under the business rates regime, where relevant conditions are met.

Any such change could be significant for furnished holiday let owners and investors in tourism-related property.

Will capital gains tax change for property owners and investors?

Beyond property-specific taxes, capital gains tax (CGT) continues to feature prominently in Budget speculation.

Unlike income tax, VAT and employee National Insurance contributions, CGT does not fall within the government’s existing tax commitments. As a result, CGT changes are possible.

Suggested changes have included increases in CGT rates, restrictions to existing reliefs and possible changes to the current uplift in value that applies on death. If rates are increased, the change could take effect from Budget day, as occurred with the main rate changes announced in October 2024. A different commencement date is also possible.

For those with an interest in the property market, any such changes could have important consequences. A future increase in CGT rates could bring forward some disposals ahead of any change and discourage others thereafter. Changes to the tax-free uplift on death could also influence whether properties are retained, sold or transferred as part of succession planning. The overall market effect would depend on the detail and timing of any measures, together with their interaction with inheritance tax and existing reliefs.

Commercial property tax, business rates and investment reliefs

The commercial property sector faces many of the same challenges as residential property, including higher financing costs, elevated construction expenses and ongoing planning constraints.

Business rates are one of the most significant tax costs for many occupiers of commercial property and therefore remain a key area to watch. The government has already announced a 20% reduction in business rates for pubs, clubs and live music venues from April 2027 and has indicated it will consider wider reforms to business rates to support high-street businesses. Further measures affecting retail and hospitality venues therefore remain possible.

The property sector will also be watching for the government’s response to its consultation on the VAT treatment of land for social housing. The proposed reform could allow qualifying land to be transferred to registered providers earlier in the development process, reducing VAT-related complexity and potentially supporting the delivery of affordable housing. View our response to this consultation.

The government may also provide an update on the tax treatment of pre-development costs and Land Remediation Relief. Changes in these areas could affect the viability and timing of major infrastructure, regeneration and brownfield development projects. View our response to the consultation on Land Remediation Relief.

Andy Burnham has committed to maintaining the current 25% corporation tax rate and full-expensing tax rules, in addition to the Annual Investment Allowance as part of Labour’s existing CT and capital investment framework so fundamental changes to these areas are unlikely.

Property tax and budget planning from Saffery

We will not know until the Budget whether any of the changes discussed in this article will be introduced and do not recommend making decisions based solely on Budget speculation. As is often the case with Budget announcements, the detail will matter more than the headlines. Understanding how any measures interact with existing rules, reliefs and commercial objectives will be critical in assessing their practical impact.

However, whether you are considering a property acquisition, disposal, development project or longer-term investment strategy, our specialists can help you:

1. Review planned transactions and understand how potential changes may affect your circumstances and whether any actions may be appropriate.
2. Reassess your tax position if tax changes are announced at the Budget.