Spring Budget 2026: Housing, Stamp Duty and the Property Market
Part 4 of our Spring Budget 2026 deep-dive — SDLT thresholds, first-time buyer relief, second-home surcharges, the housing market response and what it means for buyers, sellers and landlords.
Quick answer
Spring Budget 2026 left SDLT thresholds and rates unchanged from April 2025:
| Slice | Rate (standard) | Rate (FTB) |
|---|---|---|
| £0–£125,000 | 0% | 0% |
| £125,001–£250,000 | 2% | 0% (up to £300k) |
| £250,001–£925,000 | 5% | 5% (£300,001-£500,000); standard rates above £500k |
| £925,001–£1.5m | 10% | 10% (no FTB relief above £500k) |
| Over £1.5m | 12% | 12% |
| Additional Dwelling Supplement | +5% on whole price | n/a |
The Chancellor confirmed no further property-tax reforms in this Budget. Devolved property taxes (LBTT in Scotland, LTT in Wales) follow their own timetables and were unchanged at devolved-level Budgets in December 2025.
This is Part 4 of 5 in our Spring Budget 2026 series.
Stamp Duty Calculator
Calculate Stamp Duty Land Tax (SDLT) for your property purchase in England.
Open Stamp Duty calculatorWhy no change matters
The story since April 2025 has been one of tightening, not loosening:
- April 2025: Nil-rate band cut from £250,000 back to £125,000 (reverting a 2022 temporary cut).
- April 2025: First-time buyer relief threshold cut from £425,000 to £300,000.
- October 2024: Additional Dwelling Supplement raised from 3% to 5%.
The Spring Budget 2026 confirms all three are permanent settings going forward. The Treasury benefits from roughly £2.5 billion more SDLT per year than the 2024/25 baseline. Buyers pay it; the market has had 12 months to absorb the impact.
Worked example — £300,000 buyer in 2026/27
As first-time buyer (England/NI)
- Property: £300,000
- FTB nil-rate: £300,000
- SDLT: £0
As home-mover (replacing main residence)
- £0–£125,000: 0% = £0
- £125,001–£250,000: 2% on £125,000 = £2,500
- £250,001–£300,000: 5% on £50,000 = £2,500
- SDLT: £5,000
As second-home buyer
- Standard SDLT: £5,000
- 5% Additional Dwelling Supplement on whole £300,000 = £15,000
- SDLT: £20,000
The 5% ADS makes BTL and second-home buying meaningfully more expensive than 18 months ago. A buyer at £400,000 of additional property now pays roughly £30,000 in SDLT, up from £18,000 pre-October 2024.
Stamp Duty Calculator
Calculate Stamp Duty Land Tax (SDLT) for your property purchase in England.
Run your specific scenarioThe "FTB cliff" at £500,000
The Spring Budget didn't address one structural quirk: first-time buyers above £500,000 lose all FTB relief, not just the slice above. So:
| FTB purchase price | SDLT |
|---|---|
| £500,000 | £10,000 |
| £510,000 | £15,500 (full standard rates apply) |
A £10,000 difference in purchase price triggers a £5,500 SDLT jump — the "FTB cliff". Buyers in London and the South-East frequently hit this. The Treasury views it as an intended boundary; campaigners would like it smoothed.
Devolved taxes — Scotland and Wales
LBTT (Scotland) — set by Holyrood in December 2025
| Slice | Rate (standard) | Rate (FTB) |
|---|---|---|
| £0–£145,000 (FTB £175,000) | 0% | 0% |
| £145,001–£250,000 | 2% | 2% above £175k |
| £250,001–£325,000 | 5% | 5% |
| £325,001–£750,000 | 10% | 10% |
| Over £750,000 | 12% | 12% |
Additional Dwelling Supplement in Scotland: 8% of whole price (raised from 6% in December 2024).
LTT (Wales) — set by Senedd in October 2025
| Slice | Rate |
|---|---|
| £0–£225,000 | 0% |
| £225,001–£400,000 | 6% |
| £400,001–£750,000 | 7.5% |
| £750,001–£1.5m | 10% |
| Over £1.5m | 12% |
Wales has no FTB relief. The Welsh "additional residential property" surcharge is 5%.
Housing market reaction
The Budget was light on direct housing intervention. The main vehicles for property-market policy in 2026 are:
- Bank of England base rate — 4.25% as of May 2026, with markets pricing roughly two cuts by year-end. See our BoE rate decision for context.
- Planning reform — the government's planning bill is progressing separately; supply-side effects are 18–36 months out.
- Renters Rights legislation — affects landlord economics and BTL viability, not transaction taxes.
The Office for Budget Responsibility's March 2026 forecast assumes house prices grow roughly 2.5% nominally in 2026/27 — broadly tracking earnings growth. No big bounce, no significant fall.
What landlords need to know
The combination of:
- 5% ADS on new BTL purchases since October 2024.
- Section 24 restricting mortgage interest to a 20% tax credit (rather than full deduction).
- 5% LTT surcharge in Wales, 8% LBTT in Scotland.
- Capital gains tax at 18%/24% on residential property disposals (above the £3,000 exemption).
…has pushed many small landlords toward either:
- Incorporation — moving BTLs into a limited company. Avoids Section 24 but triggers SDLT and CGT on transfer.
- Exit — selling and reinvesting in other assets.
The Budget didn't reverse any of these pressures. Pre-Budget hopes for a Section 24 unwind were not satisfied.
For specific BTL numbers:
Buy-to-Let Calculator
Analyse the profitability of a buy-to-let investment including tax and costs.
Buy-to-let calculatorHelp to Buy: closed, no successor
The Help to Buy: Equity Loan scheme closed to new applications in 2023. The Mortgage Guarantee Scheme (95% LTV support) was extended into 2027 but is a different beast — it's a backstop for high-LTV lending, not a buyer subsidy.
The Spring Budget 2026 confirmed:
- Mortgage Guarantee Scheme: continues to June 2027.
- Lifetime ISA: £4,000 contribution + 25% bonus continues unchanged.
- No new FTB-specific cash subsidy.
Many FTBs in 2026 are using a LISA-funded deposit as the closest thing to a government top-up.
What changes mid-2026
A handful of property-related policy items move during the year, set in prior Budgets:
- From April 2026: Furnished Holiday Letting tax advantages abolished. FHLs now taxed identically to standard rental property.
- From April 2026: Private residence relief on CGT remains; but periods of letting before disposal continue to require careful timing.
- Through 2026: Multiple Dwellings Relief (MDR) on SDLT remains abolished (since June 2024).
If you're a landlord or had FHL income, see your accountant about adapting to the post-April 2026 treatment.
Practical impact for buyers in 2026/27
For most buyers, the bottom line:
- FTB at £250,000–£300,000: still £0 SDLT in England/NI. The sweet spot.
- FTB at £300,000–£500,000: 5% SDLT on the slice over £300,000. Budget for it.
- FTB at £500,000+: no relief. Full standard rates. The biggest jump.
- Home-movers: standard rates from £125,000 — the £125k–£250k slice now adds £2,500 vs the 2022–25 temporary thresholds.
- Second-home / BTL: 5% ADS on entire price. Substantial.
- Scotland and Wales: different bands, generally lower entry rates but no FTB relief in Wales.
Mortgage Affordability Calculator
Find out how much you could borrow based on your income and outgoings.
Check your borrowing powerComing next — Part 5: Business taxes and the self-employed
The final part of the series covers Corporation Tax, dividend allowances for owner-managers, R&D credits, IR35 enforcement, and Class 4 NI for sole traders.
Sources
- HMRC: Stamp Duty Land Tax: rates and bands
- Revenue Scotland: LBTT rates and bands
- Welsh Revenue Authority: LTT rates
- HM Treasury: Spring Budget 2026
- OBR Economic and fiscal outlook (March 2026)
- gov.uk: Mortgage Guarantee Scheme
Frequently asked questions
Did SDLT change in Spring Budget 2026?
No structural changes. The April 2025 thresholds remain: £125,000 nil-rate (down from £250,000), £300,000 FTB threshold (down from £425,000), 5% additional dwelling surcharge (up from 3% in October 2024).
What's the current first-time buyer SDLT relief?
First-time buyers pay no SDLT on properties up to £300,000, and 5% on the slice £300,001-£500,000. Above £500,000 no FTB relief applies — full standard rates kick in.
Did anything change for landlords?
Section 24 mortgage interest restrictions stay; the 5% additional dwelling surcharge (set October 2024) is unchanged. No new BTL-specific reforms in this Budget — but the consultation on landlord licensing reform continues.
Try the calculators
Stamp Duty Calculator
Calculate Stamp Duty Land Tax (SDLT) for your property purchase in England.
Mortgage Calculator
Calculate monthly mortgage payments, total interest, and full repayment cost.
Mortgage Affordability Calculator
Find out how much you could borrow based on your income and outgoings.
Buy-to-Let Calculator
Analyse the profitability of a buy-to-let investment including tax and costs.
In-depth guides
Related reading
Spring Budget 2026: Income Tax and Personal Allowance Impact
Part 1 of our Spring Budget 2026 deep-dive: how the Chancellor's income tax and personal allowance decisions reshape take-home pay for 2026/27, with worked examples at £25k, £45k, £75k and £125k.
Spring Budget 2026: National Insurance Changes Explained
Part 2 of our Spring Budget 2026 series — what the Chancellor announced for Class 1 employee NI, the 15% employer rate, Class 4 self-employed and the abolished Class 2. Worked examples included.
Spring Budget 2026: Pensions, ISAs and Savings Changes
Part 3 of our Spring Budget 2026 deep-dive — what the Chancellor announced for pension annual allowance, ISA limits, dividend allowance, savings interest taxation and the LISA. Worked examples included.