Setting aside the farcical episode in which the OBR “accidentally” published the Budget online 45 minutes before Chancellor Rachel Reeves rose to speak – a moment that will no doubt enter Westminster folklore - the announcement itself unfolded almost exactly as expected.
The Budget did not introduce major direct changes to stamp duty or mortgage policy. Some measures, such as the 2% increase in property-income tax from 2027 and the forthcoming high-value property surcharge may influence parts of the housing and investment market over time.
But while the headline measures were hardly electrifying, this Budget still managed to quietly reshape key parts of the personal-finance landscape.
Here are the changes most likely to affect your wallet and your home.
Frozen Thresholds, Rising Bills
The freeze on National Insurance and income-tax thresholds has been extended by a further three years, taking us beyond the current 2028 end-date.
In practice, this is tax rise by stealth. As wages increase with inflation, more people drift into higher tax bands even though the rates themselves haven’t changed.
Although Reeves has committed not to raise tax rates for ‘working people,’ extending the threshold freeze will increase tax paid by many earners over time through fiscal drag.
This means people may move into higher tax bands even though the headline rates remain unchanged.
For anyone budgeting carefully, this means your payslip may not stretch as far in the coming years, even if headline tax rates stay put.
Cash ISAs
This one will be felt immediately by savers. The annual cash ISA limit has been slashed from £20,000 to £12,000, unless you’re over 65, in which case the higher threshold remains.
Many will welcome this nod to older savers but for everyone else it’s a sudden and significant reduction in tax-free shelter.
It also adds another layer of decision-making: whether to shift more savings into stocks and shares ISAs, or simply accept that more interest will fall into the taxable pot.
Two-Child Benefit Cap
Few policies have stirred quite as much debate as the two-child benefit cap, which ends in April 2026.
The wider social effects, including whether the policy could influence family-planning decisions, remain uncertain and are a matter of debate rather than a stated government objective.
No one can say yet but, it will put more money into the pockets of many households - and that, in theory, should be good for spending confidence.
Fuel Duty Freeze
Fuel duty will be frozen again, though not until September 2026. If you’re still driving a petrol or diesel car, this is one of the few measures that won’t hit your wallet. At least not yet.
EVs & Hybrids
From 2028, electric vehicles will face a mileage-based charge (3p per mile for EVs and 1.5p for plug-in hybrids).
Quite how this will be measured is still under consultation. Telematics? MOT readings? Trust?
However, the principle is clear: the long-anticipated shift to taxing EV usage is finally coming.
Fossil-fuel drivers may feel vindicated – it’s been argued for years that they’ve been subsidising EV drivers via fuel duty – but for anyone who went electric to save long-term running costs, this is a new calculation entirely.
The Return Of The Mansion Tax (Sort Of)
Properties valued at more than £2 million will now face what is essentially a council-tax surcharge, adding between £2,500 and £7,500 a year.
Call it what you like, mansion tax, premium banding or wealth alignment, it’s still an annual charge on higher-value homes.
And as for the proposed revaluation of council-tax bands F, G and H? Good luck to the government officials tasked with that. No review of property values has gone smoothly in living memory.
More Pain For Property Investors
Buy-to-let landlords and property investors are once again in the firing line. From April 2027, property-income tax bands will rise by 2%, taking basic, higher and additional rates to 22%, 42% and 47%.
This will tighten margins further, especially when combined with higher borrowing costs and regulatory pressures.
Expect more landlords to reassess their portfolios and possibly exit the sector altogether.
Market Reaction
Although many measures carried a distinctly Labour-style tax-and-spend flavour, financial markets barely flinched.
Swaps and gilts saw minimal movement, suggesting investors had already priced much of this in - or simply weren’t surprised.
A fuller response may emerge once the fine print is digested over the coming days and weeks, but for now, market reaction is muted.
…And The Good News
The OBR’s latest forecasts do contain one genuine bright spot: inflation is expected to average 2.5% in 2026 and fall back to the Bank of England’s 2% target in 2027.
For households, this matters more than any single Budget measure. Lower inflation eases pressure on wages, helps stabilise interest rates and gives buyers and sellers confidence to plan ahead.
So where does this leave the housing market?
While the Budget didn’t directly intervene in housing, the removal of uncertainty is a positive outcome in itself.
Speculation around stamp duty, council-tax reform and wealth taxes had left many homeowners sitting tight.
Now that the fog has cleared, even if the policies themselves are modest, going forward I’d expect to see more activity as the clouds begin to clear.
Come January, more sellers are likely to list their homes and more buyers will feel confident stepping back into the market.
Clarity, even imperfect clarity, tends to unlock movement.
Remember, smart choices start with expert advice – always speak to your mortgage adviser to get the best for your financial future.
The information contained within was correct at the time of publication but is subject to change.
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