How the Burnham Budget Will Impact Buyers and Sellers

How will the Budget impact the property market? Let’s unpack what it means for buyers and sellers.

After much speculation, John Healey delivered his first Budget as Chancellor.

Budgets are always hotly anticipated, but this one was especially so as it marked the first major fiscal event for both Healey and PM Andy Burnham.

Backdrop

With public sector debt topping £3 trillion, inflation at 3.5% and the tax burden already at its highest since 1945, the government had little room to manoeuvre.

Budget 2026

The Budget included 98 measures, including a one-off £100 winter payment to properties within Council Tax bands A to D.

Some of the other property-related changes included:

First-time buyers (FTBs)

We already knew that a substantial initiative for FTBs was in the pipeline.

In the Budget, Mr Healey confirmed that the Your First Home scheme would receive £4.7 billion in government-backed lending.

Eligible FTBs with a 2.5% deposit will be able to get a 20% interest-free equity loan to buy a new-build property.

They’ll still need a mortgage to cover the remaining 77.5% of the property’s value.

Before the Budget announcement, The Times reported that the scheme's income limit will be set at £140,000 for London FTBs and £110,000 for FTBs living outside London.

However, the Chancellor’s statement did not explicitly state this, so we await confirmation on eligibility, price caps and start dates.

The Chancellor also announced a First Time Buyer ISA, which will replace the Lifetime ISA.

Mr Healey also promised to address the ‘Lifetime ISA penalty’. This means that FTBs who wish to purchase a property above the LISA price cap, will still get back "at least what you put in".

Tax on Banks

Healey raised the bank surcharge by 3% (taking it up to 6%). The new rule starts in January and will run for 15 months.

Some have argued that hitting the banks with further charges is only fair. (The UK’s four biggest banks collectively made £15 billion in profit in the first half of 2026.)

Others have suggested the costs will ultimately be passed on to consumers already facing higher mortgage rates.

And what didn’t get a mention

Sometimes what is omitted from a Budget is just as important as what is included.

There were no major changes to Capital Gains Tax, Stamp Duty or Mansion Tax.

Overall impact

If you were already planning to move, there were no substantial changes in the Budget to prompt a rethink or provide reason to delay.

Those looking to get on the housing market for the first time, however, should look into what’s available in terms of the new ISA and the Your First Home scheme to see if either could be of benefit.

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