Autumn Budget 2026

Key Takeaways for aspiring homeowners

The Autumn Budget 2026 introduced a few measures aimed at helping more people get onto the property ladder:

• A new Your First Home scheme
• Higher income threshold for Shared Ownership
• Savings support through a new First-Time Buyer ISA

These measures aim to make homeownership more accessible by reducing deposit barriers and increasing financial support.

If you are a first-time buyer or currently renting and looking to take the next step onto the property ladder, here is a breakdown of what these changes could mean for you.

1. A New Route to Homeownership for First-Time Buyers

One of the headline announcements is the Your First Home scheme - a new scheme designed to help first-time buyers purchase a home with a smaller deposit.

Under the proposed scheme, you can now:

• Purchase a home with a deposit of just 2.5%
• Receive a 20% government equity loan
• Benefit from an interest-free equity loan for five years

The scheme is specifically targeted at people who are struggling to save a traditional deposit. By reducing the upfront deposit requirement, the scheme could help more buyers move into homeownership sooner.

Who Could Qualify?

Based on the information announced so far, the scheme is expected to be available to:

• First-time buyers
• Buyers purchasing a participating new-build home
• Households earning under £140,000 in London
• Households earning under £110,000 outside London
• Buyers purchasing properties that fall within local price caps

2. Changes to Shared Ownership

The Budget also included increases to Shared Ownership income limits, potentially allowing more households to access this popular homeownership route.

The new household income caps will increase to:

• £100,000 in London
• £90,000 outside London

The increased income thresholds mean more households could qualify, making Shared Ownership an option for a wider range of aspiring homeowners.

What is Shared Ownership?

Shared Ownership can make buying a home more accessible and more affordable. You buy a percentage of your home (which you pay a mortgage on) and pay subsidised rent to us on the rest (so we own a portion of it too). It’s more affordable because you’re buying a smaller share of the home, so you’ll have a smaller deposit and smaller mortgage to pay.

You also have the option to buy more shares of the home through a process call staircasing. Staircasing allows you to take gradual steps toward full homeownership, making it a flexible and manageable option for many buyers.

3. New First-time Buyer ISA Announced

A new First-Time Buyer ISA has been announced. For those currently building up a deposit, the new ISA could provide an additional boost towards reaching their homeownership goals.

What we know so far:

• A 25% government bonus on savings
• The ability to save up to £4,000 per year
• Eligibility for homes worth up to £450,000
• Existing Lifetime ISA holders can keep their current accounts

Changes to Lifetime ISA Rules

The Autumn Budget also introduced an important adjustment for Lifetime ISA savers.

Currently, if you use a Lifetime ISA to purchase a property worth more than the scheme's £450,000 limit, you can face a withdrawal charge. Under the new proposals, that withdrawal charge will be reduced from 25% to 20%.

This means buyers who exceed the property price cap will no longer lose part of their original contribution, providing greater flexibility for those purchasing in higher-priced areas.

What does this mean for aspiring homeowners?

The Autumn Budget 2026 includes a range of measures that makes homeownership more accessible and support first-time buyers to overcome some of the financial barriers and take their next step onto the property ladder.

While some of the announced measures are still being introduced, Shared Ownership already offers an affordable route into homeownership for many buyers.

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