Autumn Budget 2026: What does it mean for homebuyers, sellers and landlords in Surrey and Hampshire?

Last week’s Autumn Budget was, on the whole, a pretty steady and unremarkable affair. 

Whether that’s a good or a bad thing, particularly against the backdrop of an uncertain world, isn’t really for us to pass comment on.

However, what we are happy to pass comment on are the property-related announcements that Chancellor John Healey unveiled. As estate agents working across Surrey and Hampshire, four areas stood out to us.

The first is the introduction of Your First Home, a £4.7 billion scheme intended to help around 70,000 first-time buyers onto the property ladder. There are also changes to the taxation of rental income, with higher rates due to take effect in April 2027.

Meanwhile, the Chancellor resisted calls for wider stamp duty reform, leaving existing homeowners facing the same transaction costs when moving.

And for first-time buyers using Lifetime ISAs, changes to withdrawal penalties could offer some welcome relief, particularly in areas where property prices exceed £450,000.

As each of these topics deserves an article in its own right, we’re going to cover each one over the coming weeks.

So, for this instalment, we’re going to focus on the first-time buyer scheme, and whether it will make home ownership more accessible in Surrey and Hampshire.

The first-time buyer conundrum

For many aspiring homeowners in Surrey and Hampshire, raising a deposit while meeting increasingly demanding mortgage affordability requirements remains one of the biggest obstacles to buying their first property. We see it all the time across the areas we serve, which includes Alton, Farnham, Godalming, Grayshott and Haslemere. 

The Government hopes its new Your First Home scheme will help address both challenges.

Backed by £4.7 billion in funding over five years, the initiative will offer eligible first-time buyers in England an equity loan equivalent to 20 per cent of the purchase price of a new-build home.

Buyers will need a deposit of as little as 2.5 per cent, with the remainder funded through a repayment mortgage from a participating lender.

The Government’s equity loan will be interest-free for the first five years, after which interest charges will apply.

Applications are expected to open in February 2027, with the first loans available from April.

What might this mean for Surrey & Hampshire’s first-time buyers?

Let’s look at a first-time buyer purchasing a £300,000 new-build property.

Under the proposed scheme, they could purchase the home with a deposit of £7,500, supported by a £60,000 Government equity loan and a mortgage of £232,500.

By comparison, purchasing the same property with a conventional 95 per cent mortgage would typically require a £15,000 deposit and a £285,000 mortgage.

For buyers struggling to save while paying rent, the reduction in the initial deposit could be significant. After all, rising house prices can sometimes outpace their savings, making it even harder to get onto the property ladder.

The smaller mortgage could also make monthly repayments more manageable, although buyers would need to consider the longer-term implications of the Government’s equity loan.

Unlike a conventional fixed loan, the amount repayable will generally reflect the property’s value when the loan is repaid. If the home increases in value, the amount owed could increase too.

Will the scheme help buyers in Surrey & Hampshire?

The scheme will only be available for eligible new-build properties, with household income limits of £110,000 outside London and £140,000 within London.

Property price caps will also apply, based on median values within individual local authority areas.

This raises an important question for first-time buyers across Surrey and Hampshire: how many suitable properties will actually fall within the scheme’s eligibility criteria? 

For buyers in towns such as Farnham, Godalming and Haslemere, where property prices can be considerably higher than the national average, these limits could affect how many homes are actually available through the scheme. In fact, our team of Surrey and Hampshire estate agents suspect that this may encourage more first-time buyers to explore the resale market. 

Whilst this remains to be seen, it does highlight that in areas where even relatively modest homes command substantial prices, the availability of qualifying new-build properties could prove just as important as the financial support itself.

And because the scheme is restricted to new homes, it won’t directly assist first-time buyers looking to purchase older properties, which make up a significant part of the wider housing market. After all, whilst a new-build property may appeal to some buyers, others may find that an existing home offers better value for money due to the inclusion of a larger garden, more living space or the very fact that it’s in a location where they actually want to be.

The view of our team of Hampshire and Surrey estate agents is that any initiative that helps first-time buyers take their first step onto the property ladder is a positive thing, particularly when saving for a deposit has historically felt like such a significant hurdle.

Moving in the right direction

Reducing the amount buyers need upfront, while also lowering the size of their mortgage, could make a real difference to those who might otherwise struggle to purchase their first home.

Of course, much will depend on the availability of qualifying new-build homes and whether the local price caps reflect the realities of the market.

And it goes without saying that anyone thinking about buying their first home should explore the options available, obtain independent mortgage advice and understand what they can realistically afford.

Our team of local estate agents in Surrey and Hampshire can help those looking to get their feet on the property ladder, of course. And while the Government appears to be moving in the right direction when it comes to supporting first-time buyers, the scheme’s impact locally will ultimately depend on how many properties qualify.

In the meantime, keep an eye out for our next article, which focuses on higher taxes for landlords.

Thinking of a winter move?

Whether you’re hoping to buy your first home, considering your next move or simply want to know what your property might be worth, we’re always happy to have a conversation. Contact your nearest Warren Powell-Richards office to discuss your options.