Four weeks ago, we walked through what might land in the Autumn Budget: mansion tax speculation, landlord tax rumours, a first-time buyer scheme still being drawn up. On 28 October, Chancellor Healey delivered it for real — some of it close to expected, some of it different. For homeowners, landlords, developers and commercial borrowers alike, the question now isn't what might happen. It's what to do about what will.
The biggest change for landlords: tax on rental income rises a further 2 percentage points, on top of the 2-point rise announced at the previous Budget. From April 2027, basic, higher and additional rates on property income reach 24%, 44% and 49% (HM Treasury, via Mortgage Solutions, 28 October 2026). The Office for Budget Responsibility itself expects this to reduce returns to private landlords and could push rents higher. We're already hearing from portfolio landlords asking whether incorporation now makes more sense than it did a year ago — for some, holding property personally, it increasingly will.
The long-speculated “mansion tax” — officially the High Value Council Tax Surcharge — is confirmed for homes worth £2 million or more, with first bills landing in March 2028 and the threshold staying at £2 million rather than falling to the £1.5 million some had floated. A deferral scheme and some exemptions apply, so it's worth checking the detail rather than assuming it applies in full (HM Treasury, 28 October 2026).
At the other end of the market, the “Your First Home” scheme we first mentioned in September now has a date and real numbers: a 2.5% government equity loan on new-build homes, launching Spring 2027 and backed by £4.7 billion of Treasury funding, with household income caps of £110,000 outside London and £140,000 inside it (HM Treasury, 28 October 2026).
None of this changes the mortgage rate picture overnight. The average two-year fixed rate for homeowners stood at 5.97% and the average five-year fix at 6.00% as at 30 October 2026, and average buy-to-let rates at 75% loan-to-value were 5.27% (two-year) and 5.66% (five-year) as at 1 August 2026 (Moneyfacts, subject to criteria). The Bank of England base rate has held at 3.75% since September, with the next decision due on 5 November.
Every Budget that raises the cost of holding property personally pushes another landlord toward asking the incorporation question properly — not just in theory.
At a glance
- Landlord tax up again: rental income tax rises a further 2 points from April 2027 — 24% / 44% / 49% across the bands (HM Treasury/OBR, 28 Oct 2026).
- Mansion tax confirmed: £2m+ homes, first bills March 2028, with deferral and exemption options (HM Treasury, 28 Oct 2026).
- New scheme dated: “Your First Home” launches Spring 2027 — 2.5% equity loan, £4.7bn funding, income caps £110k/£140k (HM Treasury, 28 Oct 2026).
- Rates steady: homeowner avg 2yr fix 5.97%, BTL avg 75% LTV 2yr 5.27% (Moneyfacts, 30 Oct/1 Aug 2026); Bank of England base rate held at 3.75%.
Sources
- Mortgage Solutions: Autumn Budget 2026 landlord tax rise, 28 Oct 2026
- The Negotiator: what Chancellor Healey announced for housing, 28 Oct 2026
- Moneyfacts: average fixed mortgage rates, 30 Oct 2026
To talk through what this means for you, start your enquiry or contact us.
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.