The recent October 2026 Budget has introduced several measures that could significantly influence the housing and property market across the UK. As your trusted estate agent, we've analysed the key announcements to help you understand what they might mean for you, whether you're looking to sell, buy, or let property.

Stamp Duty Land Tax (SDLT)

One of the most closely watched areas for property transactions is Stamp Duty Land Tax. While there were no radical overhauls, the Budget did confirm the continuation of certain thresholds and reliefs. For first-time buyers, the existing relief, which exempts them from SDLT on properties up to £300,000 and offers a reduced rate on properties up to £500,000, remains in place. This is positive news for those looking to get onto the property ladder in Sussex, potentially maintaining buyer confidence at the entry level of the market.

For other buyers, the standard rates and bands continue as before. This stability, rather than sudden changes, provides a degree of predictability, which can be beneficial for market activity. However, it also means that the costs associated with moving remain a significant consideration for many.

Capital Gains Tax (CGT) on Property

There was considerable speculation regarding potential changes to Capital Gains Tax, particularly concerning residential property. The Budget confirmed that the current rates and allowances for CGT remain largely unchanged. This will be a relief for many landlords and second-home owners who might have been concerned about increased tax liabilities upon selling a property. The absence of an increase could encourage some landlords to retain their investments, while others might still consider selling if market conditions are favourable, without the added pressure of an imminent tax hike.

Support for Homeownership and Building

The government reiterated its commitment to increasing housing supply, with further funding allocated to various initiatives aimed at boosting housebuilding. While the direct impact on Sussex might not be immediate, a national increase in housing stock could, in the long term, help to stabilise property prices and offer more choice for buyers. Specific measures include continued support for affordable housing programmes and infrastructure development, which indirectly supports new residential projects.

New Government Scheme to Help First-Time Buyers

The Government has announced a new scheme called Your First Home, aimed at helping first-time buyers purchase a new-build property with a smaller deposit. Expected to launch in February 2027, the scheme will allow eligible buyers to purchase with a deposit of just 2.5%, alongside a Government equity loan covering 20% of the property's value, interest-free for the first five years. For example, a £300,000 home could be purchased with a £7,500 deposit and a mortgage of £232,500. Household income limits of £110,000 outside London will apply, along with local property price caps. Whilst the scheme could help more buyers onto the property ladder, it's important to understand that the equity loan is linked to the property's future value, meaning the amount owed could increase if house prices rise. Further details, including eligible developments and lenders, are expected ahead of the launch.

Rental Market Implications for Landlords

For landlords in Sussex, the Budget offered a mixed bag. While CGT remained stable, there were no new significant tax reliefs announced for landlords. The existing restrictions on mortgage interest relief continue to apply, meaning landlords cannot deduct all their finance costs from their rental income before calculating tax. This ongoing policy continues to put pressure on profitability for some landlords, potentially influencing rental prices or investment decisions in the local area. However, the demand for rental properties in Sussex remains strong, suggesting that the market will likely absorb these pressures.

Economic Outlook and Mortgage Rates

Beyond direct property taxes, the broader economic outlook presented in the Budget is crucial. The Chancellor's forecasts for inflation and economic growth will influence the Bank of England's decisions on interest rates. Any indication of sustained higher inflation could lead to further interest rate rises, impacting mortgage affordability for both new buyers and those remortgaging. Conversely, a more stable economic picture could lead to more competitive mortgage products, stimulating buyer activity. We advise all potential buyers to speak with a financial advisor to understand the current mortgage landscape.

What This Means for Sussex

In summary, the October 2026 Budget appears to favour stability over radical change in the property market. For Sussex, this means:

• Buyers: First-time buyer relief continues, offering a consistent pathway onto the ladder. Mortgage rates remain a key factor, so professional financial advice is essential.
• Sellers: A stable market, without major new taxes, could maintain buyer confidence. Pricing your property correctly with an experienced local estate agent is paramount.
• Landlords: CGT stability is positive, but existing tax rules on mortgage interest continue to shape investment decisions. Demand for rental properties remains robust.

The team at Oakley is here to provide expert advice tailored to your specific circumstances in Sussex. Contact us today to discuss how these Budget changes might affect your property plans.