Wednesday's Autumn Budget had more in it for property developers than the headlines suggested. From the details of the Your First Home scheme to a pause on new building regulations, here is what matters if you are building, converting or about to sell finished units.
What the Budget changed for developers
- Your First Home details confirmed. The new equity loan scheme for first-time buyers has price caps of £650,000 in inner London and £500,000 in outer London, with regional caps still to follow. Buyers need a deposit of 2.5% to 15%, the equity loan is up to 20%, pre-registration opens in December, and the first loans are due from April 2027. Developers will pay a sign-up contribution on a sliding scale, with the amount still to be confirmed (Mortgage Solutions, 28 Oct 2026).
- A line drawn under building regulation changes. The Chancellor said there will be no major changes to building regulations in this Parliament, other than for safety (Mortgage Solutions, 28 Oct 2026).
- Small brownfield sites freed from Biodiversity Net Gain. Residential brownfield sites of up to 1.5 hectares will be exempt.
- The OBR agrees costs have bitten. Its October 2026 outlook says levies, regulation and higher borrowing costs since late 2022 have weighed on housebuilding more than expected.
Lenders are already responding
A day after the Budget, Allica Bank updated its development exit bridging product, citing the clarity on Your First Home. It will now consider residential schemes over £2.5 million with more than one unit, up to 75% loan-to-value over a maximum 24-month term, and will look at schemes aimed at first-time buyers case by case (Mortgage Solutions, 29 Oct 2026).
The wider point: when policy becomes clearer, lenders find it easier to price risk on finished stock. If your units suit first-time buyers, the scheme could widen your buyer pool from spring 2027, but only once the regional caps and developer terms are published.
What this means for your next scheme
Development exit finance can repay your build loan once construction is complete, giving you time to sell units at the right price rather than rushing. Lenders will still want a credible exit: realistic sale values, comparable evidence, and a plan B (such as refinancing onto a buy-to-let or commercial mortgage) if sales take longer.
Please note: most development finance and bridging loans for investment property are not regulated by the Financial Conduct Authority.
Quick tips
- Check your planned sale prices against the Your First Home caps once the regional figures are out.
- Start talking to exit lenders before practical completion, not after.
- Keep your build budget, cost-to-complete and sales evidence up to date: lenders will ask.
- Small brownfield site? Ask your planning consultant how the Biodiversity Net Gain exemption affects your timeline.
- Build in a margin for longer sales periods in your appraisal.
Plan your finance with OMB
Our CeMAP-qualified advisers work with development and bridging lenders across the market. See how development exit finance works, run your numbers through our development finance calculator, or read how we helped with a four-house scheme in Maidstone.
Sources
- Mortgage Solutions: Your First Home available up to £650,000, details revealed (28 Oct 2026)
- Mortgage Solutions: OBR says regulations have burdened housebuilding (28 Oct 2026)
- Mortgage Solutions: Allica Bank enhances development exit product in Budget response (29 Oct 2026)
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.