The Grantham Property News
Budget brings help for first-time buyers—but landlords face higher property-income tax
Secure My Sale Estate Agents Grantham says Wednesday’s Budget could offer some support to first-time buyers and household budgets, but it also leaves landlords with new costs to plan for.
GRANTHAM, 29 October 2026 — The Budget’s main housing announcement is Your First Home, a new scheme intended to help first-time buyers purchase eligible new-build homes in England with a smaller deposit and mortgage. Buyers will need a deposit of at least 2.5% and a repayment mortgage from a participating lender; the Government will provide an equity loan worth 20% of the purchase price, interest-free for five years.
The scheme is expected to open for applications in February 2027. Buyers will still need to pass lender affordability and credit checks, and the local price cap, participating developments and full eligibility rules are yet to be published. The Government says the scheme is designed to help around 70,000 buyers, with £4.7 billion of funding available over five years. For Grantham buyers, the practical question will be whether suitable local new-build homes are included and fall within the eventual price cap. (gov.uk)
Landlords should review their figures
From 6 April 2027, income tax rates on property income will rise by two percentage points. The new rates will be 24% at the basic rate, 44% at the higher rate and 49% at the additional rate in England, Wales and Northern Ireland.
For landlords in Grantham, this could reduce the after-tax return from a rental property, although the effect will depend on their individual income and circumstances. It may prompt some owners to revisit their costs, rents and plans to buy or sell. It does not, by itself, mean rents will automatically rise: local demand, tenants’ budgets and the condition and location of a property will still matter. (gov.uk)
More affordable homes—and longer-term saving support
The Government has added £1.5 billion to England’s Social and Affordable Homes Programme, with funding intended to support around 10,000 additional homes, prioritising social rent and council housing. This is a national commitment; how much it leads to new homes in or around Grantham will depend on future decisions about where funding and projects go. (gov.uk)
First-time buyers who are saving for the longer term may also want to note that a new First Time Buyer ISA is planned for April 2029. It will offer a 25% Government bonus towards a first home costing up to £450,000, with the bonus capped at £20,000. Existing Lifetime ISA holders can continue under the current rules; from 29 October 2026, the withdrawal charge is reduced for existing holders buying a first home above the £450,000 cap. These changes may help some future buyers, but they are not immediate help for people trying to complete a purchase now. (gov.uk)
Household bills and the local high street
The Budget also announced a £100 Household Energy Payment for eligible households in England in council tax bands A to D, starting in January 2027. The temporary zero rate of VAT on domestic electricity is being extended to July 2027, and the Government has asked Ofgem to abolish household gas standing charges, aiming for delivery by the end of 2027 or as soon as possible after that.
These measures do not directly change property prices or mortgage costs, but lower household bills could leave some buyers and tenants with more room in their monthly budgets. The Government is also extending the 5p-per-litre fuel duty cut until 1 July 2027—a measure that may matter to Grantham residents who commute or rely on a car. (commonslibrary.parliament.uk)
There was support for some high-street businesses, too. From April 2027, qualifying retail, hospitality and leisure properties in England will have higher thresholds for Small Business Rates Relief, and business-rate bills for qualifying businesses will be capped by CPI inflation for two years. Pubs, social clubs and most live music venues will receive a higher rate of relief. The impact in Grantham will depend on each business’s eligibility and rateable value. (gov.uk)
Comment for Jason Lee, FNAVA MNAEA:
“For first-time buyers in Grantham, the new-build scheme could make a meaningful difference to the deposit they need—but it won’t remove the need to meet a lender’s affordability checks, and we’re still waiting for the local price cap and list of participating homes. Landlords should also look ahead to the property-income tax changes and review their figures early. As ever, the Budget is only part of the picture: local supply, buyer demand and what people can afford will shape the market here.”
For Grantham, the clearest takeaway is a mix of potential help and caution: first-time buyers may get another route into selected new-build homes, while landlords face a future tax change and households may receive some help with energy costs. None of these announcements alone guarantees a rise or fall in local property values; the effect will depend on how the measures are implemented and how buyers and sellers respond.
Need property advice in Grantham?
Whether you’re a first-time buyer exploring the new-build scheme, a landlord reviewing your plans, or a homeowner thinking about selling, Secure My Sale Estate Agents can help you understand what the Budget may mean for your next move.
For local advice on the Grantham property market, buying or selling a home, lettings, or a free property valuation in Grantham,
Contact the team:
Secure My Sale Estate Agents Call: 01476 825258 Email: grantham@localagent.co.uk Visit: www.securemysale.co.uk 51 London Road, Grantham, NG31 6ET
