Canterbury & Kent

Budget Day, 28 October 2026: What Kent Homebuyers and Sellers Should Watch For

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Eight hundred thousand homeowners have shelved their moving plans because of stamp duty. Today, that figure is on everyone’s mind as Chancellor John Healey delivers his first Autumn Budget. For Autumn Budget 2026 homebuyers across Canterbury and the wider county, the next few hours could reshape affordability calculations that have already been squeezed by rising mortgage rates and a sluggish market.

This is a significant moment. Prime Minister Andy Burnham, in office since July 2026, has already ruled out major changes to stamp duty. But other measures affecting property taxation, first-time buyer support, and high-value homes are either confirmed or expected to land today. Kent buyers and sellers need to understand what is changing, what isn’t, and how to protect themselves in a market where stock is at a 12-year high but demand has cooled.

Key Takeaways

• Stamp duty and the 5% additional-homes surcharge remain unchanged, Burnham has explicitly ruled this out.
• A capital gains tax rise on residential property has reportedly also been ruled out ahead of the Budget.
• A new “Your First Home” equity loan scheme for first-time buyers is expected to be detailed today.
• The £2m+ council tax surcharge (“mansion tax”) starts April 2028; a feared threshold cut to £1.5m has been ruled out.
• Kent’s housing market is buyer-friendly on stock but nervous on mortgage rates, a RICS survey is now a key negotiating tool.

What’s Already Off the Table

Burnham has been unusually direct. “That won’t be happening,” he said of any stamp duty overhaul. The existing 5% surcharge on additional homes, a key cost for landlords and second-home buyers in Kent’s coastal towns, stays exactly as it is. He also rejected, “at this stage,” replacing stamp duty and council tax with a single annual property tax, an idea that had unsettled homeowners across the South East for months.

Separately, the Financial Times has reported that Healey has ruled out raising capital gains tax on residential property. Gains remain taxed at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers. For Kent landlords and second-home owners considering a sale, this removes one layer of uncertainty, though it’s worth confirming the detail once the Budget documents are published.

The Mansion Tax and What It Means for Kent

The High Value Council Tax Surcharge, already announced before today, will apply to England homes worth £2 million or more from April 2028. Annual charges will range from £2,500 to £7,500. Few Kent properties outside premium pockets of Sevenoaks or Tunbridge Wells will be affected, but rumours of lowering the threshold to £1.5 million caused real alarm among owners of larger Canterbury and Ashford homes. That cut has reportedly been ruled out after pushback from Labour MPs, which is a relief for sellers in that bracket planning to list in the next 18 months.

What’s Expected: The “Your First Home” Scheme

The headline announcement for Autumn Budget 2026 homebuyers is likely to be the “Your First Home” scheme. Reported terms, per the HomeOwners Alliance, include:

• A 2.5% deposit from the buyer
• A 20% government equity loan, interest-free initially
• A mortgage covering the remaining 77.5%
• Household income caps and local price caps

This could open the door for first-time buyers priced out of Canterbury’s new-build developments, though it will only apply to participating developers and new-build stock, not the existing resale market that dominates much of Kent. Buyers should wait for confirmed scheme rules before adjusting their plans, since caps on income and price could exclude many at the higher end of the Kent market.

Why Budget Day Uncertainty Matters for Kent Transactions

Even when policies are ruled out, uncertainty itself has a cost. The Office for Budget Responsibility publishes its forecast alongside the Budget today, and the Bank of England’s next rate decision follows on 5 November 2026. A Reuters poll of 63 economists found 54 expect a quarter-point rise to 4%, following a rise in CPI inflation to 3.5% in September from 3.1%.

Here’s the current Kent and national backdrop, based on Rightmove’s October index:

Metric	October 2026	Trend
Average new-seller asking price	£371,015	Up 1% monthly, down 0.1% yearly
Sales agreed	,	Down 8% year-on-year
Buyer enquiries	,	Down 9% year-on-year
New listings	,	Up 3% year-on-year
Homes for sale	Highest since 2014	Rising
Average two-year fixed mortgage rate	5.55%	Up from 5.29% in September, 4.25% in February

This is a market with plenty of choice for buyers but weaker demand and rising borrowing costs. That combination gives buyers more negotiating leverage than they’ve had in years, but only if they use it well.

“In a market with record stock and falling enquiries, the deal is won or lost in the survey report, not the asking price.”

How Autumn Budget 2026 Homebuyers in Kent Should Respond

With stamp duty unchanged and mortgage rates likely to stay elevated past the 5 November decision, Kent buyers should focus on what they can control: the condition and true value of the property itself.

A RICS Level 2 Homebuyer Report or Level 3 Building Survey gives buyers hard evidence to negotiate price reductions or repair contributions, which matters more than ever when:

1. Sellers are competing against record stock levels and may be more flexible.
2. Mortgage lenders are tightening affordability checks as rates sit above 5.5%.
3. Buyers have less room for financial surprises after completion.

For sellers, a pre-sale survey can pre-empt buyer objections, speed up the sale, and support the asking price with evidence rather than optimism.

Frequently Asked Questions

Will stamp duty change after the Budget? No. Prime Minister Andy Burnham has confirmed stamp duty, including the 5% surcharge on additional homes, will not be altered in this Budget.

Does the mansion tax affect most Kent homeowners? Only homes valued at £2 million or more from April 2028 will face the High Value Council Tax Surcharge. A threshold cut to £1.5 million has reportedly been ruled out.

Is capital gains tax on property going up? Reports indicate Chancellor John Healey has ruled out a rise. Rates remain 18% basic and 24% higher rate on residential gains.

What is the “Your First Home” scheme? An expected government equity loan scheme for first-time buyers purchasing new-build homes, with a 2.5% deposit, 20% equity loan, and 77.5% mortgage, subject to income and price caps.

Should Kent buyers wait until after 5 November to proceed? Not necessarily. Rates may rise regardless of waiting, and sellers facing high stock levels may be more open to negotiation now. A survey-backed offer protects buyers either way.

Conclusion

Today’s Budget removes some uncertainty for Autumn Budget 2026 homebuyers, stamp duty and capital gains tax rules are staying put, but mortgage rates and the 5 November Bank of England decision remain live risks. Kent’s market currently favours buyers on stock but not on borrowing costs, which makes due diligence essential.

Before making an offer or accepting one, Canterbury and Kent buyers and sellers should commission a RICS-regulated survey to understand a property’s true condition and value. Contact Canterbury Surveyors today to arrange a Level 2 or Level 3 survey and move forward with confidence, whatever the Budget brings.