---
title: The Budget Gives First-Time Buyers a 2.5% Deposit and Landlords a Four-Point Tax Rise
description: "Budget 2026: Your First Home equity loans from a 2.5% deposit, landlord tax rising to 24%, 44% and 49%, and the £2m council tax surcharge explained."
author: Dr Marina Nani (Editor-in-Chief)
date: 2026-10-28T22:49:59.900Z
updated: 2026-10-28T22:51:35.053Z
canonical: https://www.sovereignmagazine.com/article/budget-2026-first-time-buyers-landlords
image: https://cdn.nanimediahouse.com/pexels-36729696.webp
categories: Real Estate, Economy
content_type: Analysis
region: United Kingdom
publication: Sovereign Magazine
access: members
about:
  - type: Person
    name: John Healey
    description: John Healey is a British Labour politician who became Chancellor of the Exchequer on 20 July 2026. He previously served as Defence Secretary and, earlier, as Housing Minister.
    jobTitle: Chancellor of the Exchequer
    worksFor: HM Treasury
    sameAs:
      - https://en.wikipedia.org/wiki/John_Healey
---

Chancellor John Healey delivered his first Budget on Wednesday 28th October, and housing sat closer to its centre than any other part of daily life. First-time buyers gain a government equity loan scheme backed by £4.7bn of lending. Landlords face their second tax rise in two Budgets. Owners of homes worth £2m or more now have the full schedule for the council tax surcharge. Stamp duty, the tax most buyers hoped to see cut, stays exactly as it was.

## First-time buyers can buy with a 2.5% deposit from April 2027

Your First Home is a 20% equity loan, interest-free for the first five years. You put down a deposit of between 2.5% and 15%, the government lends you 20% of the price, and a mortgage covers the rest. Your household income must sit below £110,000 outside London or £140,000 in London. Property price caps follow local median prices and reach £650,000 in inner London and £500,000 in outer London.

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