Autumn Budget 2026: Industry frustrated by ‘low-key, beige Budget’

Chancellor John Healey today (28th October) delivered his first Autumn Budget, setting out measures spanning housing, banking, business investment and economic growth.

While the chancellor sought to balance support for first-time buyers and businesses with the need to shore up the public finances, reaction from across the specialist finance industry suggests many believe the Budget stopped short of delivering the bold reforms needed to unlock housing supply, stimulate development and boost lending activity.

Industry professionals reacted to the Autumn Budget

Mark Eastwood, director of corporate sales at Together: “Having declared the banking sector the ‘jewel in the crown’ of the country’s economy, the chancellor’s decision today to increase the rate profit surcharge for banks undoubtedly removes some of the sheen.

“The treasury would have judged today’s decision as necessary, given the diminishing fiscal headroom and a desire to keep personal tax changes to a minimum. But given the centrality of the sector to the economy, the effects of the tax are likely to trickle down to everyday British people.

“Beyond a potential acceleration of plans to lay off workers or move certain operations out of the country, banks may look to offset the effects of the tax by lowering interest rate deals for savers and increasing mortgage rates.

“Mortgage borrowers are already contending with a market grappling with a cauldron of unpredictable swap rates and rising inflation, so an additional upward pressure may cause first-time buyers to pause plans, and existing borrowers to cut back on additional spending to cope with increased rates.”

Stability over stimulus

Jonathan Sealey, CEO at Hope Capital Property Finance: “Today’s Budget was about stability rather than stimulus, and for property finance that is a mixed blessing.

"Leaving stamp duty untouched gives investors and developers certainty after months of speculation. But it is a missed chance to take friction out of the market. The higher rates on additional properties add a significant upfront cost to every investor purchase, refurbishment project and portfolio acquisition, which slows the recycling of stock and holds back the very activity that improves tired housing. A lighter touch for investors bringing property back into use would have been a sensible, low-cost step.

"The bigger story is the cost of money. The OBR expects inflation to average 3.5% next year, and five-year fixed rates are already around 6%. Little in today’s statement changes that. For property investors, the gilt market’s verdict over the coming weeks will matter far more than anything said at the despatch box.

"Landlords have been hit for a second year running. A further two percentage points on property income from April 2027, on top of the rise already legislated, takes individual landlords to 24%, 44% and 49%. Expect more portfolio restructuring, more incorporations and more sales by smaller landlords. That will create short-term finance demand for refinancing, restructuring and value-add refurbishment, but the long-term effect on rental supply is a real concern, and tenants will ultimately feel it.

"For bridging, demand looks well underpinned. Mainstream credit remains tight, landlords need to restructure, and SME developers need flexible capital to finish and sell schemes. What the market really needed was a clear, long-term plan for property taxation. It still does not have one.”

Budget misses the mark

Anthony Curtis, director at FORTO Finance: “To my mind, this Budget just tinkered around the edges. John Healey ignored the property and housing sectors almost entirely.

“About the only thing we’ve got is the revived Help to Buy. Your First Home, which aims to help young people get on the property ladder, won’t work half as well as the chancellor imagines.

“The people who use it will leave themselves at a high risk of falling into negative equity. Mortgage professionals know what dangerous territory that is to be in.

"Healey needed to deregulate housebuilding much further.  Developers are ramping down their building in the South of England. It's too expensive to build.

“While the government has brought back Help to Buy, there need to be new homes to buy. At this point, Your First Home is just Sturm und Drang, with no real action to stimulate the property industry.

“Instead, he should have made downsizers — buyers over 55 moving to a cheaper main home, say — exempt from stamp duty. It wouldn’t have cost that much and it would have triggered a chain of further sales, each of which would have paid stamp duty.

“The cut would have helped a moribund property market and would have paid for itself via all the extra transactions. And it would have freed up large homes for families to buy.

“The 2026 Budget missed the mark.”

Calm, constructive Budget

Joshua Elash, founding director at MT Finance: "As predicted, this was a calm, constructive Budget. The headline measures to support home ownership, including the first time buyer ISA and the Your First Home Equity Scheme, provide first time buyers with a clearer route onto the property ladder. They also offer a welcome boost for developers and give businesses the certainty needed to plan. 

"Together, these measures create a strong foundation for growth in 2027, and specialist finance will have an important role to play in helping the market build on that momentum."

Lack of ambition

Duncan Kreeger, CEO at TAB: “This was a steady-as-she-goes, low-key, beige Budget. The best that can be said about it is that the tax rises are modest compared to those of Rachel Reeves, that it hasn’t offered a lot of surprises for the bond market, and that it sticks within the government’s tight fiscal rules.

“But keeping some spending pressures in check is not the same as repairing the public finances or super-charging growth. Demonstrating the economy is in the hands of a grown-up is a pretty low bar.

“I thought this Budget lacked ambition. The extent of red tape in BTL is stupefying, and since the general election it’s only got worse.

“John Healey needs to loosen the paralysing grip of over-regulation. We’re out here lending the money to help property investors but there are huge opportunities to accelerate growth via deregulation of the sector further.

“The tax raid on bank profits is interesting. It will put more pressure on the banks’ appetite for specialist property lending. With banks under further pressure, property investors and small businesses are set to feel lending tighten.”

Some real positives from a wider market viewpoint

Matt Mawdesley, CEO and founder at Morpheus Lending: "I think there are some real positives in this today from a wider market point. The Budget offers some welcome support for the housing market, but the real driver of confidence will be the direction of interest rates and wholesale funding costs. With SONIA and swap rates remaining elevated, affordability, liquidity and refinancing certainty continue to be the key challenges for borrowers and lenders alike.

"There’s some more pressure on portfolio landlords from next year, which as always will focus lenders and investors on identifying the best opportunities and having the ability to move quickly in securing them. 

"As such we expect demand for flexible bridging and refurbishment finance to remain strong as property investors and developers navigate an always complex market."

Tough balancing act

Charles Resnick, chief finance officer at Afin Bank: “The first Budget for chancellor John Healey under the premiership of Andy Burnham was always going to be a tough balancing act, especially given that limited fiscal headroom would constrain additional spending and require careful prioritisation.

“The 3% increase in the bank surcharge was lower than had been feared and banking shares rallied as a result, but how the markets respond to the chancellor’s package of measures will be a real test for how it has landed."

Geographic disparities persist

Scott Clay, director of private clients at Together: “Confirmation of an income cap of £110,000 per household outside of London for the Your First Home scheme means the initiative has more of a shot at being effective, with more aspiring homeowners standing to benefit.

“That said, there’s still a geographic disparity in the number of potential beneficiaries of the scheme. The income cap may come to bite for those living in the London commuter belt, who miss out on the capital’s £140,000 income cap while having to contend with the higher house prices of the South East."

Flexible funding remains essential

Rob Johnson, underwriting director, at Somo: “While the Budget includes measures to boost the wider property market, there’s little to directly address the challenges facing property investors.

"With borrowing costs and uncertainty continuing to affect confidence, access to fast, flexible finance remains essential. Specialist lenders have a vital role to play in helping investors refinance, release equity and seize opportunities.”