The Autumn Budget 2026 introduced several changes affecting the UK property market, including higher tax rates on rental income and new support for first-time buyers. For buyers, homeowners and landlords in Manchester, these announcements could influence future property costs and investment decisions.
With some measures taking effect from April 2027 and others planned for 2028 and 2029, understanding the changes is important when planning your next property move. Here's a closer look at the key Autumn Budget property announcements and what they could mean for the Manchester property market.
What the Autumn Budget means for first-time buyers
One of the main housing announcements was the government's new ‘Your First Home’ scheme, designed to help first-time buyers purchase a new-build home in England with a smaller deposit. Eligible buyers can put down a minimum deposit of 2.5%, with a government equity loan covering up to 20% of the purchase price and a repayment mortgage covering the remainder. The loan will be interest-free for the first five years, with interest applying from year six. The government has allocated £4.7 billion to help around 70,000 households, with eligibility including a £110,000 household income limit outside London and property price caps based on local authority median prices.
For example, on an eligible £300,000 property, a buyer could put down £7,500, receive a £60,000 government equity loan and take out a £232,500 mortgage. Pre-registration is expected to open by the end of December 2026, with applications from February 2027 and the first loans expected from April 2027. Buyers will still need to meet lenders' affordability and credit checks and consider future interest charges and equity loan repayment terms.
How Property Income Tax changes will affect landlords
One of the key changes for landlords is a further increase in the rates of income tax applied to property income, coming into effect from 6th April 2027.
The Autumn Budget confirmed a further two-percentage-point increase to the previously announced property income tax rates, bringing them to:
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Basic rate: 24%
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Higher rate: 44%
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Additional rate: 49%
These rates apply to individuals and partnerships receiving property income in England, Wales and Northern Ireland. The amount of tax an individual landlord pays will depend on their overall financial circumstances and taxable property income.
The impact may be more significant for landlords with mortgage borrowing. Under existing tax rules, individual landlords cannot deduct residential mortgage interest directly from their rental income when calculating taxable profit. Instead, they receive a basic-rate tax reduction on qualifying finance costs. This means some landlords, particularly those paying higher rates of tax, may face a greater effective tax burden.
For landlords with buy-to-let properties in Manchester, understanding rental income, operating costs and potential tax liabilities is particularly important when assessing the ongoing performance of an investment.
How Northern Group supports landlords
With these changes making it even more important to understand the financial performance of rental properties, having a clear picture of rental income, operating costs and potential tax liabilities can help landlords make informed decisions about their investments.
At Northern Group, we work closely with landlords to monitor their property's ongoing performance, keep track of management and maintenance costs, and identify areas that may need attention. Our property management services provide support throughout the tenancy, keeping landlords informed about their property and the costs involved in managing it.
Lifetime ISA changes and the new First Time Buyer ISA
The Budget also introduced changes to savings support for first-time buyers.
From 29th October 2026, the withdrawal charge for eligible first-time buyers using a Lifetime ISA to purchase a property above the existing £450,000 price cap has reduced from 25% to 20%. This offers some relief for buyers purchasing in areas where property prices exceed the limit. Other unauthorised withdrawals will remain subject to the 25% charge.
Looking ahead, the government plans to introduce a new First Time Buyer ISA in April 2029. Savers will be able to contribute up to £4,000 a year, with a 25% government bonus on their final account balance, up to a maximum of £20,000. This can be used towards an eligible first home valued at up to £450,000.
The new account will replace the Lifetime ISA for new savers, while existing holders can continue using their accounts under the current rules. Both accounts can be used towards the same qualifying purchase, but savings cannot be transferred directly between them.
What the Autumn Budget Means for the Manchester Property Market
Named by Oxford Economics as a city to watch this year, Manchester continues to attract investment, businesses and new residents. Its evolving economy and growing population are important factors in the long-term outlook for the city's property market.
An increased government presence, including No.10 North, could bring further activity to the city and strengthen its position as a major centre for business and employment. Continued residential development will be important in supporting this progress, providing homes for people moving to Manchester for work and the opportunities it offers.
Investment in new housing will also be important in meeting demand as the city grows. For buyers and investors, ongoing development creates opportunities across a range of locations and property types. The budget's additional funding for social and affordable housing will support the delivery of more homes across England. Increasing housing supply remains important in meeting demand and supporting local communities.
For anyone considering a move or property investment in Manchester, understanding local property values, rental demand and ownership costs remains important. The Budget introduces further factors to consider, alongside the opportunities within the local market.
How Northern Group can support your property plans
The Autumn Budget brings changes that buyers, homeowners and landlords will need to consider when making property decisions. While some announcements introduce additional costs, others aim to support homeownership and increase housing supply. Understanding how these changes affect individual circumstances is important, particularly for landlords reviewing their investments and buyers planning their next move.
At Northern Group, our team has over 20 years of experience in the Manchester property market, supporting clients across residential and commercial sales, lettings, property management and development.
Whether you're looking for your next home, considering a property investment or reviewing the management of an existing portfolio, we're here to help. Browse our current properties for sale in Manchester or speak to our team to find out more about how we can support your property plans.