Unpacking The Autumn Budget – What the Budget really means for homebuyers

The Autumn Budget dropped last week and since then it’s been all over the news and social media. With changes being announced on everything from taxes and housing to childcare and pensions, it’s a lot to take in.

To help homebuyers understand the impact of the Budget and what it actually means for the housing market, we have unpacked the key updates and how they affect those looking to move to a brand-new home.

A limited window to maximise ISA savings

One of the biggest announcements for buyers is the upcoming reduction to cash ISA allowances.

ISA stands for ‘Individual Savings Accounts’ and there are four types: Cash, Stocks and Shares, Lifetime and Innovative Finance. With a cash ISA, you’re able to earn interest on your savings without paying any tax. A Stocks and Shares ISA, in comparison, allows you to invest tax-free money in stocks, bonds, funds and other market assets.

Currently, the annual limit across all types of ISA accounts is £20,000. From 6^th April 2027, this limit will be changing for cash ISAs and dropping to £12,000.

This means you will only be allowed put up to £12,000 into a cash ISA account per tax year. You won’t be able to contribute more and then pay tax, as any attempt you make will be rejected or refunded.

For anyone using a cash ISA to build a deposit, this means the pace of saving will slow after 2027. However, for buyers planning to move within the next one to two years, the news is positive. There is still time to benefit from the higher allowance and grow tax-free savings more quickly before the limit changes.

Higher taxes for landlords may shift the rental market and reduce investor competition

From April 2027, taxes on rental income will rise by 2%. The basic rate, which applies to incomes ranging from £12,571 to £50,270, will be increasing from 20% to 22%. The higher rate, for incomes of £50,271 to £125,140, will go up to 42% and the additional rate for any higher incomes to 47%.

These higher costs may lead some landlords to pass the increase on to tenants through higher rents, making renting more expensive for some households.

At the same time, higher taxes may make some landlords think twice about buying more properties. If fewer landlords are looking to purchase, this could mean less competition for people wanting to buy a home to live in.

For homebuyers, this may create a more level playing field and allow those looking to move away from renting to explore home ownership with greater confidence.

The new ‘mansion tax’ will not affect most buyers

A new High Value Council Tax Surcharge, known as a ‘mansion tax’, will apply from April 2028, but only on homes valued at £2 million and above. Charges start at £2,500 per year and rise to £7,500 for the highest value properties.

For most buyers looking at typical new-build homes, this will have no impact at all. All of our Allison homes fall well below this threshold, which means there is no extra, long-term tax burden to factor into budgeting.

What this means for buyers planning their next move

Overall, this Budget supports a stable environment for homebuyers. Ahead of the Budget, we understand many home seekers were feeling nervous about being faced with major changes, but now everyone looking for a new home can have confidence rather than feeling hesitant.

Kelly Toms, Sales and Marketing Director at Allison Homes Central, said: “This Budget gives buyers clarity and confidence at a time when many are planning their next steps. With no major changes to schemes or Stamp Duty and a clear window to maximise savings before 2027, now is a strong moment to look ahead to where you want to be in 2026.

“Our teams are here to guide buyers through every stage and help them make decisions that truly work for them.”

In the search for your perfect new home, it’s important to understand what you can afford before getting your heart set on a specific property.

The Budget also announced an increase to minimum wage that will take effect next April, meaning some people will be able to earn, save and afford more than they would previously. On the flip side, thresholds on student loans and taxes are freezing, resulting in some people having to pay more tax.

Our friendly teams can put you in touch with free, independent financial advisors, to help you understand your affordability.

Looking to take advantage of the current market conditions?

Securing a home now means entering the market at the right time and benefitting from potential future growth.

At Allison Homes, we are supporting buyers with:

• Tailored buying schemes to help make their move easier, more affordable and faster. From Part Exchange and Ezymove to our Friends and Family Deposit Match and Key Worker Discount, there is something for all types of homebuyers.
• Beautiful homes that are available now, ready for an exciting new start in 2026.

If you want to understand how the Budget aligns with your homebuying goals, our sales teams are ready to help.

Explore our developments today and discover the communities where your next chapter can begin.