Budget 2026: What Does It Mean for Leicester’s Property Market?

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The October 2026 Budget brought several announcements that could affect the property market, particularly first-time buyers and landlords.

At Priya Properties, we’ve been part of Leicester’s property market for many years, working across both sales and lettings. Here are some of the key changes we think buyers, sellers and landlords in Leicester should be aware of.

More support for first-time buyers

There was some welcome news for those hoping to get onto the property ladder, including the new Your First Home scheme and the announcement of a new First Time Buyer ISA.

The Your First Home scheme is designed to help first-time buyers overcome the challenge of saving a deposit, with £4.7 billion committed to the scheme.

For first-time buyers in Leicester, this could provide another route towards home ownership, particularly for those who can afford the ongoing costs of owning a home but have struggled to build a sufficient deposit.

What does the Budget mean for landlords?

For landlords, one of the key announcements relates to the taxation of property income.

From April 2027, property income tax rates will be 24%, 44% and 49%, depending on the applicable tax band.

For landlords in Leicester, this is another change to factor into longer term property investment and portfolio planning.

The private rented sector plays an important role in our city. While helping more people become homeowners is welcome, we also need good landlords providing good quality homes for people who choose or need to rent.

Further investment in housing

The Budget also announced additional investment in social and affordable housing, as part of wider plans to increase housing supply.

For Leicester, maintaining the right balance between home ownership, private renting and affordable housing will remain important to the health of our local property market.

What could this mean for Leicester?

Overall, there are positives for people hoping to take their first step onto the property ladder, alongside further changes for landlords to navigate.

At Priya Properties, we believe a healthy Leicester property market needs both. We need opportunities for people to buy their own homes, while maintaining a good supply of quality rental properties.

Thinking about buying, selling or letting a property in Leicester?

Whether you’re planning your next move or simply want to understand what these changes could mean for you, the Priya Properties team would be happy to help.

Get in touch with us to discuss your property plans.

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Find out what your property could achieve in today’s market with a free, no-obligation valuation from our local experts.

Stamp Duty:

This calculation is only a guide. We can’t give financial advice, so always check with an adviser. It applies to UK residents buying residential properties in England and Northern Ireland. It doesn’t apply if you’re buying through a company.
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These results are estimates and are only intended as a guide. Make sure you obtain accurate figures from your lender before committing to any mortgage. Your home may be repossessed if you do not keep up repayments on a mortgage.
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