The Government has announced Your First Home, a new equity loan scheme for first-time buyers purchasing new-build homes in England, backed by £4.7 billion of government-backed loans. The scheme is due to open for pre-registration by the end of December, with full applications from February 2027 and first loans from April, alongside changes to Lifetime ISA withdrawal rules and a future First Time Buyer ISA.
The article reports that the Chancellor has announced a further 2 percentage point increase in Income Tax on property rental earnings from April 2027, taking the basic rate to 24%, the higher rate to 44% and the additional rate to 49%. Industry commentators warn the change could reduce landlord confidence, push up rents and further constrain rental supply.
The Autumn Budget 2026 confirms higher taxation on rental income from April 2027, alongside the launch of a new first-time buyer support scheme, Your First Home, in Spring 2027. It also confirms a High Value Council Tax Surcharge on homes worth £2 million and above, plus a new First Time Buyer ISA from April 2029 and changes to Lifetime ISA withdrawal rules.
The article reports on expectations ahead of the Chancellor’s first Autumn Budget, with property industry figures hoping for measures to support housing market activity, first-time buyers and landlord confidence. Commentators also call for clearer support for flats, downsizing, empty homes, and energy-efficiency incentives, while warning that tax and policy changes should not undermine scheme viability or investment.
OnTheMarket’s latest Property Sentiment Index suggests that confidence in government housing policy is weak ahead of the Autumn Budget, with many movers and the wider public believing recent policy has harmed the property market. At the same time, expectations of higher borrowing costs have increased, although most active buyers still say they are confident they can fund a purchase.
New research cited by Yopa suggests that many first-time buyers are making significant personal and financial sacrifices to save for a deposit, with a majority reporting a negative impact on quality of life. The article also notes that the Government has announced a new first-time buyer scheme, with further details expected in the upcoming Budget.
