Budget 2026: what it means for the Portsmouth and Southsea property market
What does the Autumn Budget mean for homeowners, prospective buyers, landlords and tenants across Portsmouth and Southsea? Here at Chinneck Shaw, we’ve been looking closely at the measures announced and how they could affect people looking to buy, sell, rent or invest in the area.
In short, it’s a mixed picture for the property market. First-time buyers receive targeted support while landlords face higher taxes on rental income.
For first-time buyers, the headline announcement is the £4.7 billion scheme called Your First Home. This is designed to help those eligible to purchase new-build properties with a smaller deposit.
Under the scheme, the government aims to help people onto the property ladder through equity loans of up to 20%, with deposits starting at just 2.5%.
The loans will be interest-free for five years before charges gradually increase. A household income cap of £110,000 applies outside London alongside local property price limits. Pre-registration is expected by December 2026, with applications opening in February 2027 and the first loans issued from April.
We would always caution buyers against assuming that a smaller deposit automatically makes a property affordable. Mortgage repayments, interest rates, service charges and other household costs remain important parts of the equation.
A new ‘First Time Buyer’ ISA, planned for April 2029, will also offer a 25% government bonus on qualifying tax-free savings.
For landlords, the message is more challenging. From April 2027, income tax rates on rental profits will rise by two percentage points, reaching 24% for basic-rate taxpayers, 44% for higher-rate and 49% for additional-rate. This could squeeze returns, particularly for those already facing challenges in meeting their mortgage, maintenance and compliance costs.
For homeowners looking to sell, there was unfortunately no broad reduction in property transaction taxes that would encourage more people to move. However, the Budget’s additional £1.5 billion for social and affordable housing, supporting around 10,000 more homes nationally, could help address supply pressures over time.
Owners of properties worth £2 million or more should also watch the forthcoming High Value Council Tax Surcharge arrangements, including confirmed discounts, exemptions and deferral provisions.
While this won’t affect many homes across Portsmouth and Southsea directly, it is another reminder that property ownership costs can change and should be considered when planning a move or managing an investment.
For property investors, the prospect of higher rental-income taxation is likely to weaken the appeal of some buy-to-let homes. Investment decisions will increasingly depend on financing costs, net yields and long-term prospects rather than anticipated capital growth alone.
For buyers and sellers in Portsmouth and Southsea, our advice is to understand the confirmed measures and take a realistic view of your own circumstances.
Whether you’re considering buying, selling, letting or renting, we’re here to help you understand what the Budget could mean for your next move.
Contact us on 023 9282 6731, email us at hello@chinneckshaw.co.uk or pop into one of our offices: Bridge House, Milton Road, Portsmouth, PO3 6AN; or 65 Castle Road, Southsea, PO5 3AY.
By Lizzie Burt – Associate Director – Chinneck Shaw