What the Autumn Budget 2026 budget means for your home buying options
05 November 2026
For many aspiring homeowners, the biggest challenge isn't finding the right home, it's finding the right way to buy it.
The Autumn Budget 2026 introduced plans designed to help more people access homeownership in England, including the proposed new Your First Home scheme and expanded eligibility for Shared Ownership.
For buyers who may have previously felt homeownership was out of reach, these changes could create new opportunities to get onto the property ladder and access support that wasn't previously available.
Whether you're a first-time buyer, looking to move home, or exploring more affordable ways to buy, here's what the latest announcements could mean for you.
In this section:
What was announced in the Autumn Budget?
The Government has announced plans for a new homeownership scheme called Your First Home, expected to launch in 2027 for eligible first-time buyers purchasing qualifying new-build homes.
Alongside this, Shared Ownership eligibility is set to expand, with household income caps increasing from:
• £80,000 to £90,000 outside London
• £90,000 to £110,000 within London
These proposed changes could open the door to homeownership for more people who may previously have fallen outside the eligibility criteria, particularly those who narrowly missed out under the previous income limits.
While full scheme details are still being finalised, the announcements are a welcome signal of continued support for first-time buyers and those looking for more affordable ways to own a home.
Understanding your buying options
There is no one-size-fits-all approach to buying a home. Depending on your circumstances, deposit, income and long-term plans, there are several routes you may wish to consider.
Open Market Sale
A traditional home purchase involves buying 100% of a property from day one.
Many buyers choose to fund their purchase through a mortgage and deposit, while others may buy outright using cash, or a combination of both. This route provides full ownership immediately and doesn't involve rent payments or equity loans.
Whilst it offers the greatest level of ownership from the outset, it typically requires the largest upfront financial commitment when compared with affordable homeownership schemes.
Learn more about applying for a mortgage and what it might cost for you here.
Shared Ownership
Shared Ownership allows you to buy an initial share of a property and pay rent on the remaining share.
Because your deposit and mortgage are based on the share you're purchasing rather than the full value of the home, the upfront costs can be significantly lower than buying outright.
Shared Ownership remains one of the UK's most popular affordable homeownership routes and continues to help thousands of buyers take their first step onto the property ladder sooner than might otherwise have been possible.
The Autumn Budget also included plans to increase Shared Ownership income caps from 2027, broadening eligibility for more households. Proposed thresholds will rise from £80,000 to £90,000 outside London and from £90,000 to £110,000 within London, helping more aspiring homeowners access the scheme.
For buyers who may have assumed they earned too much to qualify, now could be the perfect time to revisit their options.
The Government's proposed Your First Home scheme is designed to support eligible first-time buyers purchasing a new-build home. For many buyers, Your First Home may feel familiar. Like the previous Help to Buy Equity Loan scheme, it combines a buyer deposit and mortgage with a Government equity loan, helping to reduce both the upfront deposit required and the size of the mortgage needed to purchase a new-build home.
Under the proposed model, buyers would:
• Purchase a qualifying new-build property
• Provide a minimum deposit of 2.5%
• Take out a repayment mortgage
• Receive a Government equity loan worth up to 20% of the property value
• Pay no interest on the equity loan for the first five years
For buyers who aren't quite ready today, it provides another reason to start planning ahead and understanding what support may become available in the near future.
Example local authority price caps
|
Local Authority |
Property Value Cap |
|
Dorset |
£355,000 |
|
Thanet |
£350,000 |
|
Welwyn Hatfield |
£385,000 |
|
Hackney |
£650,000 |
|
Canterbury |
£405,000 |
|
Birmingham |
£315,000 |
These examples show how price caps can differ between local authorities. The relevant cap will depend on the location of the home you're interested in.
Since the Autumn Budget announcement, the Government has published further details about the Your First Home scheme, including household income limits and local authority property price caps. To qualify, households must have an income of no more than £110,000 per year, rising to £140,000 in London. Property price caps are also set at local authority level, meaning the maximum value of an eligible home can vary depending on where you buy. Buyers can view the relevant local authority cap in the Your First Home property price cap guidance to see whether a property's full market value falls within the relevant threshold.
The scheme is expected to launch in 2027, although participating developers, eligible developments and full application guidance are still to be confirmed.
Every buyer's situation is different, but the comparison below illustrates how the different routes could work on a £350,000 new-build home.
A traditional purchase using a 95% mortgage could require a deposit of £17,500.
Under the proposed Your First Home scheme, the minimum deposit could reduce to £8,750, supported by a Government equity loan.
Meanwhile, a buyer purchasing a 25% share through Shared Ownership could require a deposit of £4,375, with mortgage payments on the purchased share and rent payable on the remaining share.
For many buyers, the difference between these figures could be what turns homeownership from a long-term ambition into a realistic next step.
While lower upfront costs can help make homeownership more accessible, buyers should always consider the overall long-term costs associated with each option and seek independent financial advice before making a decision.
Which option is right for you?
The right route depends on your personal circumstances.
Some buyers may prefer the simplicity and full ownership that comes with purchasing a home outright.
Others may find Shared Ownership offers a more achievable route onto the property ladder today, particularly with the proposed expansion of eligibility through increased income caps.
For first-time buyers planning ahead, the proposed Your First Home scheme could provide another option worth considering when it becomes available.
Understanding the upfront costs, monthly commitments and long-term implications of each route can help you make an informed decision about which option is right for you.
Looking ahead
The Autumn Budget announcements represent a positive step towards expanding access to homeownership and providing buyers with greater choice.
For buyers, the most important message is that there are now more routes into homeownership available than many people may realise. Whether that's through Shared Ownership today or proposed schemes such as Your First Home in the future, the range of options continues to grow.
At Places for People, we're committed to helping customers understand the different ways they can buy a new home and supporting them throughout every stage of their journey.
We'll continue to monitor developments surrounding the proposed Your First Home scheme and share updates as further details emerge.
Ready to explore your options?
Whether you're buying your first home, moving up the property ladder or looking for a more affordable route into homeownership, our team is here to help.
Browse our available homes or speak to one of our Sales Executives to find out which buying option could be right for you.
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