Autumn Budget 2025: Key updates for home buyers, renters and anyone planning their next move

The Chancellor, Rachel Reeves, delivered the Autumn Budget yesterday (November 26^th) – and while there weren’t any major housing updates to help first time buyers, there were some important changes that could impact homeowners, renters and anyone trying to save for a first home.

Here’s a summary of the main points affecting housing, tax and savings.

A new annual tax on high-value homes

One of the most significant housing-related announcements was the introduction of an annual charge on properties worth more than £2million, set to begin in April 2028.

Key details of the high value council tax, also known as ‘mansion tax’, include:

• Homes valued over £2 million will face an annual surcharge (to be paid in addition to normal rates of council tax).
• Charges will start at £2,500 per year, rising to £7,500 for properties above £5 million (note: the owner of the property will be responsible for paying this tax, not the occupier).
• Only a very small proportion of UK homes fall into this category, with most located in London and the South East.

For the vast majority of buyers, this measure will have no direct impact as it is aimed solely at the highest-value end of the property market.

Higher taxes for landlords from 2027

In a bid to “narrow the gap between tax paid on work and tax paid on income from assets”, the government announced that from April 2027, landlords will pay 2% more tax on rental income. This will increase property income tax rates to:

• 22% for basic-rate payers.
• 42% for higher-rate payers.
• 47% for additional-rate payers.

There is a concern that some landlords may pass the extra cost on to renters by increasing prices, while others may choose to sell up if the numbers no longer work, which could reduce rental supply. Neither outcome is ideal for tenants, especially those trying to save for a deposit at the same time.

The biggest barrier to homeownership for most is struggling to save enough money, and a rise in rents will only make this more challenging. This could make alternative routes, such as Shared Ownership and Rent to Buy, more appealing for those reassessing their longer-term homeownership plans, with affordable housing options requiring smaller upfront costs.

Changes to ISA allowances for under-65s

Savers under the age of 65 will see changes to their annual ISA limits from April 2027, meaning that:

• The cash ISA limit will reduce to £12,000 per year.
• You will still be able to save up to £20,000 across all your ISAs, but anything above the £12,000 cash limit must go into a stocks and shares ISA.

The government’s reasoning for these changes is to encourage more people to invest.

For anyone saving for a housing deposit, this may require taking a slightly different approach.

This change will not impact those aged 65 and over, who will still be able to save up to £20,000 in a cash ISA.

Lifetime ISA to be replaced for new savers

One update directly aimed at first time buyers was the announcement that the Lifetime ISA (LISA) will be phased out for new savers, with the government set to consult on a replacement scheme in early 2026.

Lifetime ISAs were introduced in 2017 to help people aged 18–39 save for their first home or for retirement, offering a 25% government bonus on contributions.

The government has confirmed:

• A consultation will begin in 2026 on a new, simpler ISA product aimed specifically at first time buyers.
• Once the new product launches, it will replace the Lifetime ISA for new savers.
• As part of the consultation, the Government will also consider raising the property price threshold for existing LISA holders.

For current LISA users, there are no immediate changes; you can continue saving and receiving the government bonus.

Stamp Duty: no changes announced

Despite speculation in recent months that the government might overhaul Stamp Duty Land Tax (SDLT) – possibly getting rid of it altogether or raising the thresholds – no changes were made to Stamp Duty rates this year. This means the existing SDLT rules remain in place.

National Minimum Wage increases from 2026

The Budget also announced rises to the National Minimum Wage, which may offer some financial breathing room for those working towards building a deposit.

From April 1^st 2026:

• Workers aged 21 and over will see wages rise by 4.1%, from £12.21 to £12.71 per hour – worth around £900 a year for a full-time employee.
• Wages for those aged 18 to 20 will rise by 8.5%, increasing from £10 to £10.85 per hour – around £1,500 a year for a full-time employee.
• Pay for 16 and 17-year-olds and apprentices will increase by 6%, rising from £7.55 to £8 per hour.

This increase may help some aspiring buyers manage rising costs or set aside more for savings – although the minimum wage remains lower than the ‘real living wage’.

Moving forward with confidence

While this Budget doesn’t dramatically reshape the housing market, it does underline the importance of accessible routes into homeownership.

If you’re considering your next steps, whether that’s saving for a deposit or exploring affordable homeownership options such as Shared Ownership, our guides, tools and property listings can help you move forward with greater clarity.