UK Property Market Roundup: October 2026

October has been an important month for the UK property market, with the government’s Autumn Budget bringing several announcements that could influence the decisions of property investors, landlords and prospective buyers.

Delivered on 28 October, the Budget included measures aimed at supporting first-time buyers, encouraging housebuilding and providing some stability around property taxation. However, it also introduced further tax increases for individual landlords, making it important for investors to understand how the changes could affect their investment strategies.

For the property market, the announcements create a mixed picture, with potential opportunities for increased housing demand alongside some additional considerations for investors.

Here are some of the key developments from October.

The Autumn Budget 2026: What Was Announced?

The Chancellor’s Autumn Budget was the biggest development for the property sector this month, with several announcements directly relevant to the housing market.

While there had been speculation about changes to property taxation, the government left the main rates of Stamp Duty Land Tax and Capital Gains Tax unchanged.

For investors, this provides some continuity around property purchase costs and the tax payable when selling an investment property.

However, there were also changes to the taxation of rental income, alongside new measures designed to help more buyers enter the housing market.

Stamp Duty Remains Unchanged

One of the more reassuring announcements for property investors was the decision not to increase Stamp Duty rates.

Despite speculation ahead of the Budget about potential changes to property taxation, the existing Stamp Duty structure remains in place, including the additional-property surcharge.

This means investors purchasing additional residential properties will continue to work within the current tax framework when calculating their acquisition costs.

For anyone considering a property purchase, this provides greater clarity when assessing the overall costs of an investment.

Your First Home Scheme Confirmed

Another significant announcement was the confirmation of the government’s £4.7 billion Your First Home scheme.

Originally announced in September, the scheme is designed to help eligible first-time buyers purchase new-build properties through a government-backed equity loan of up to 20% of the purchase price.

One of its main features is the ability for qualifying buyers to enter the market with a deposit as low as 2.5%.

The scheme is expected to launch in April 2027 and is intended to support approximately 70,000 buyers while encouraging the construction of additional new homes.

For the wider property market, increasing the number of people able to purchase a home could help support demand for new-build housing and give developers greater confidence when bringing forward future developments.

For property investors, this could be a positive development, particularly where investment opportunities are located in areas benefiting from continued residential development and housing demand.

Changes to Rental Income Tax for Landlords

While the Budget provided some positive news for the wider housing market, there was also an important consideration for individual buy-to-let landlords.

The government announced a further two-percentage-point increase in the tax rates applied to property income, taking effect from April 2027.

This means the planned rates will increase to:

• Basic rate: 24%
• Higher rate: 44%
• Additional rate: 49%

These changes apply to individual landlords receiving property income, rather than being a change to the main rates of Corporation Tax paid by limited companies.

For investors, this reinforces the importance of understanding how an investment is structured and considering the impact of taxation on overall returns.

It also highlights why investors should assess opportunities based on their individual financial circumstances and seek appropriate professional tax advice when considering different ownership structures.

Capital Gains Tax Rates Remain Unchanged

There was some uncertainty ahead of the Budget around whether Capital Gains Tax on residential investment properties would increase.

However, the Chancellor left the main residential property Capital Gains Tax rates unchanged.

The existing rates of 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers therefore remain in place.

For investors considering their longer-term investment strategy, this provides some continuity when assessing potential future disposal costs and investment returns.

Additional Funding for Affordable Housing

The Budget also included an additional £1.5 billion for the Social and Affordable Homes Programme, intended to support the delivery of approximately 10,000 additional homes in England.

The funding is focused on increasing the supply of affordable housing, particularly homes for social rent.

This is another indication of the government’s continued focus on addressing the country’s housing shortage.

For the wider property market, increased investment in housing provision could support construction activity, regeneration and the development of residential communities.

It also highlights the importance of different types of housing provision in meeting the needs of the UK population.

What Do the Budget Announcements Mean for Property Investors?

October’s Budget provides a mixture of opportunities and considerations for property investors.

On one hand, the decision to leave Stamp Duty and the main Capital Gains Tax rates unchanged provides some stability, while the Your First Home scheme could help support demand for new-build housing.

On the other hand, the increase in property income tax for individual landlords means that investors need to pay close attention to how their investments are structured and how future returns may be affected.

The wider economic outlook also remains important, with the Office for Budget Responsibility revising its 2026 growth forecast slightly upwards to 1.2%, while reducing its forecast for 2027 growth to 1%.

For investors, this reinforces the importance of taking a considered approach, looking beyond headline market announcements and focusing on the fundamentals of each opportunity.

The key themes from October include:

• Stamp Duty rates remaining unchanged.
• Confirmation of the £4.7 billion Your First Home scheme.
• Deposits as low as 2.5% for eligible first-time buyers purchasing qualifying new-build homes.
• Increased tax rates on individual landlords’ property income from April 2027.
• Main residential Capital Gains Tax rates remaining unchanged.
• Additional £1.5 billion funding for affordable housing.
• A mixed economic outlook, with slower growth expected in 2027.

Rather than relying on one particular market indicator, investors should consider the purchase price, rental demand, location, asset quality, taxation and their own longer-term financial objectives when assessing property investments.

Looking Ahead to November

Following October’s Budget, attention will now turn to how the announced measures are implemented and what they could mean for the wider housing market.

The Your First Home scheme is expected to launch in April 2027, while the changes to property income taxation will also be an important consideration for landlords as they review their investment strategies.

Mortgage rates, inflation, housing supply and rental demand will continue to influence the market over the coming months.

For property investors, the underlying fundamentals remain important: identifying suitable locations, understanding tenant demand and carefully assessing the potential income and longer-term prospects of an investment.

At Portico Investment, we continue to monitor developments across the UK property market and identify opportunities across Buy-to-Let and Specialist Supported Housing.

If you’re considering your next property investment, speak to our team to explore the opportunities currently available and discuss which approach may be suitable for your circumstances and investment objectives.

Contact our team to discuss