Our six takeaways from the 2026 Budget for property developers, investors and landlords

Here are our six takeaways.

1. Brownfield BNG exemption could help viability

The Government has announced an exemption from Biodiversity Net Gain (BNG) requirements for residential brownfield developments on sites up to 1.5 hectares in England.

For qualifying schemes, this could reduce spending on biodiversity measures or off-site units, which may improve viability on sites that currently struggle to stack up.

The detailed rules and implementation timetable are still to follow. Until eligibility and commencement dates are confirmed, existing BNG allowances should stay in your appraisals. Removing them early risks understating costs on a live scheme.

2. Planning reform: could delays and holding costs fall?

Local planning authorities in England will be required to digitise key planning documents by the end of 2027. The Government also intends to make its PlanAssist AI planning tool available to all councils in England by then, subject to further testing.

If these measures improve processing times, developers could benefit from lower holding costs, reduced interest and less pressure on facility expiry dates. That is a significant “if”. Nothing yet shows how much difference these tools will make in practice, and performance will vary between councils.

Finance should therefore still be structured around realistic local planning timescales, with sufficient headroom for delays.

3. Your First Home could strengthen new-build demand

The new Your First Home scheme will offer eligible first-time buyers in England a 20% government equity loan, interest-free for five years, with a minimum deposit of 2.5%. Applications are expected to open in February 2027, with the first sales under the scheme from April 2027.

This could widen the buyer pool for qualifying developments. However, participation fees start at 1% of the sale price for the first 100 homes sold through the scheme each year, with higher rates applying progressively above that level. That cost sits with the developer and will affect margins.

Before assuming stronger sales or changing an exit strategy, check eligibility, local price caps and the participation costs against your own appraisal.

4. Affordable housing: potential partnerships and alternative exits

An additional £1.5 billion has been announced for the Social and Affordable Homes Programme, alongside a proposed VAT zero rate from April 2027 for qualifying land sales to registered social housing providers.

For some developers and landowners, this could strengthen the case for exploring housing association partnerships or an alternative sale strategy. The VAT measure is a proposal, and the commercial terms, transaction structure and VAT position will need individual assessment.

5. Landlords: review post-tax rental cash flow

Property income tax rates are due to rise to 24%, 44% and 49% from 6 April 2027 in England, Wales and Northern Ireland.

This is particularly relevant to landlords holding property personally. Property held through a limited company is subject to different tax rules. Changing ownership structure can trigger costs such as Stamp Duty Land Tax and Capital Gains Tax, so any restructuring should be reviewed with your tax adviser before you proceed.

Alongside that review, it is worth checking whether your borrowing costs, refinancing plans and cash reserves remain appropriate for lower post-tax income.

6. Greater stability in building regulations

The Government has committed to avoiding major building regulation changes for the remainder of Parliament, with exceptions for building safety, including implementing Grenfell Inquiry recommendations.

Greater certainty could help developers plan specifications, construction budgets and funding requirements. It does not remove the need to assess the regulations and safety requirements that apply to each scheme.

What this means for your funding

These announcements are reasons to revisit an appraisal, but potential savings and faster planning should only be reflected once there is enough certainty. Costs that are confirmed, such as participation fees and tax rate changes, should be built in sooner than benefits that are still proposed.

At Pure Structured Finance, we help clients source and structure acquisition, development, bridging and investment finance around the project, programme and intended exit.

If you have a scheme stalled on viability, a facility approaching expiry or a portfolio due for refinancing, get in touch and we can review your funding options.

This article is for general information only and does not constitute financial, tax or legal advice. Policy details are based on Budget announcements and may change. 29/10/2026.