What Andy Burnham's housing agenda means for first-time buyers and homeowners

Key takeaways

• Your First Home: First-time buyers in England can buy a new-build home with a 2.5% deposit and a 20% government loan. Pre-registration opens in December 2026, and the first loans are expected in April 2027.
• Lifetime ISA: It will be replaced by a First Time Buyer ISA in April 2029. From 29 October 2026, the penalty for using a Lifetime ISA on a home over £450,000 falls from 25% to 20%.
• Cash ISA limit: The planned cut to £12,000 has been scrapped. You can still save up to £20,000 a year.
• Stamp duty: There are no changes. First-time buyers still pay nothing on the first £300,000 of a home worth up to £500,000.
• Base rate: It’s held at 3.75%, but inflation rose to 3.5% in September. The next decision is on 5 November.

Your First Home: the new scheme for first-time buyers

Andy Burnham announced Your First Home on 26 September. The Budget has now confirmed how it will work.

Price caps will be set out in full over the coming weeks, but for inner and outer London these caps will be £650,000 and £500,000 respectively, while they will be £375,000 in Reading, £320,000 in North Devon, £355,000 in Manchester and £220,000 in Middlesbrough.

Key dates:

• December 2026: Pre-registration opens. Registering doesn’t commit you to buying.
• February 2027: Applications open.
• April 2027: The first loans are expected.

Example: On a £300,000 new-build home, you’d put down £7,500 (2.5%). The government would lend you £60,000 (20%), and you’d need a mortgage of £232,500.

How it compares with Help to Buy: Help to Buy also offered a 20% equity loan that was interest-free for five years, but it needed a 5% deposit. Your First Home halves that, and it adds income caps, which Help to Buy didn’t have. That’s partly a response to evidence that many Help to Buy users could have bought without it.

One thing to watch: The inner London price cap (£650,000) is higher than the limit for first-time buyer stamp duty relief (£500,000). If you buy above £500,000, you’ll pay full stamp duty even if you’re using the scheme.

What we think at Tembo:

What does it mean for you? 

An equity loan doesn't cut the cost of your home. It changes how you pay for it. You'll need to repay the loan eventually, and because it's usually a share of the home's value, you'll pay back more if prices rise. A smaller deposit can also mean fewer mortgage deals to choose from and higher rates. Before you commit, it's worth comparing the full cost over time with other options, like saving a bigger deposit or looking at shared ownership or a guarantor mortgage.

Lifetime ISA changes: what's happening

The Budget confirmed that the Lifetime ISA will be replaced by a new First Time Buyer ISA in April 2029, a year later than first expected.

What changes now:

• Homes over £450,000: From 29 October 2026, if you use your Lifetime ISA on a first home costing more than £450,000, the charge falls from 25% to 20%. You lose the government bonus but keep your own savings.
• Other withdrawals: Taking money out for any other reason still carries the 25% charge.

The new First-Time Buyer ISA (from April 2029):

• Who can open one: Anyone aged 18 or over. There’s no upper age limit.
• How much you can save: Up to £4,000 a year.
• Bonus: 25% of your final balance, paid when you buy, up to a maximum of £20,000.
• Property price cap: £450,000, unchanged.
• Withdrawal charge: None.
• Transfers: You can’t transfer a Lifetime ISA into it, but you can use both towards the same home. Help to Buy ISAs can be transferred in between April 2029 and December 2030.

If you already have a LISA: You won't be forced to move your money. Under the proposals, existing accounts stay open and you can keep paying in. The current rules still apply until then, including the £450,000 cap and the withdrawal charge.

What it means for you: If you're saving for a first home now, the LISA bonus can still be one of the best savings products available. It’s not often in life you get handed £1,000 a year, so you don't have to stop paying in because a new account is on the way. A mortgage adviser can help you work out whether your LISA, and your mortgage plans could fit together.

Mortgage rates: what's moving them

Base rate: The Bank of England held it at 3.75% on 17 September, with three of the nine rate-setters voting to raise it to 4%. All eyes are on the next announcement in November, with a rise expected.

Inflation: It rose to 3.5% in September, up from 3.1% in August, mainly because of higher fuel costs.

Budget reaction: Markets reacted calmly, with gilts broadly steady, which takes some pressure off fixed-rate pricing for now.

Next base rate decision: 5 November.

Council housing and affordable homes

Burnham promised "the biggest programme of council house building since the Second World War." The first delivery details came on 2 September:

• £10 billion of the £39 billion Social and Affordable Homes Programme has been allocated
• It will fund 70,000 homes in the next 10 years, so far 60% allocated to social rent
• Only about 2,800 (under 4%) will be council homes. Most will be delivered by housing associations, developers and other partners
• Only 3 of the 33 partners are councils (Cambridge, Eastleigh and Newcastle). Housing associations and other providers will build most of the homes
• Councils will also get stronger powers to turn more than 300,000 empty homes into council housing

What it means for you: More social housing is a long-term project, so it won't change prices for buyers in the next year or two. Over time, it could ease pressure on rents in high-demand areas.

Property tax: what the Budget confirmed

• Stamp duty: Nothing has changed. First-time buyers pay nothing on the first £300,000 of a home worth up to £500,000.
• Land value tax: It wasn’t introduced. Burnham’s idea of replacing stamp duty and council tax hasn’t been taken forward in this Budget.
• Mansion tax: The High Value Council Tax Surcharge will apply to homes in England worth over £2 million from April 2028. It runs from £2,500 a year, rising to £7,500 for homes over £5 million. The threshold wasn’t cut to £1.5 million, despite reports that it might be.
• Landlords: Tax on rental income rises to 24% (basic rate), 44% (higher) and 49% (additional) from April 2027.

Renting: new rules are already here

A lot of change for renters is coming from the Renters' Rights Act, which Burnham inherited:

• Since 1 May 2026: no-fault (Section 21) evictions have ended, tenancies have become rolling (periodic), rent can only go up once a year through the formal process, and landlords can't ask for more than one month's rent in advance or encourage bidding wars
• From late 2026 into 2027: a national landlord database and a new landlord ombudsman are being introduced

As Mayor of Greater Manchester, Burnham introduced a Good Landlord Charter and tougher enforcement, and he has spoken positively about rent controls. No national rent controls have been announced.

What should I do? Our top tips

First-time buyers

• Check whether you’re eligible for Your First Home and look up the price cap in your area. Pre-registration opens in December. Speak with an advisor to see what the best option could be for you.
• Keep paying into a Lifetime ISA; the new ISA isn’t coming until 2029, so start earning your government bonus now.

Home movers

• Stamp duty is unchanged, and there’s no sign of land value tax. Plan using current rates.

Remortgagers

• Inflation is rising, and the next rate decision is on 5 November. If your deal ends within six months, think about locking in a rate now.

Landlords

• Plan for higher tax on rental income from April 2027, and prepare to register on the landlord database.

Conclusion

The Budget turned promises into detail. Your First Home has dates and limits, the Lifetime ISA’s replacement has a launch date, and savers keep their full £20,000 cash ISA allowance. For most buyers, the priorities stay the same: build your deposit, know how much you can borrow, and time your mortgage deal well.