Autumn Budget 2026: Regional Investment for Property Investors
Key takeaways
- The Budget names regeneration and investment projects across the Midlands, the North and the Oxford to Cambridge corridor, as well as Bristol, London and the devolved nations.
- Derby has the biggest figures, with Alstom’s £1 billion train contract and a £2.5 billion Rolls-Royce programme, while Leeds station gets over £300 million.
- With rental income tax rising from April 2027 and Capital Gains Tax unchanged, choosing a city with strong growth prospects matters more than it did.
Most of the coverage of this week’s Autumn Budget has focused on tax, and for landlords the headline is a further rise in tax on rental income from April 2027. Capital Gains Tax was left alone, though, which means long-term growth now makes up a bigger share of the return for many investors and puts more weight than ever on where you buy.
The Budget has plenty to say about that as well. The government’s case is that the UK’s big regional cities have been holding the national economy back, and Treasury figures in the Budget suggest that narrowing their productivity gap could add up to £108 billion to England’s GDP. Alongside the tax measures sits a long list of named projects, devolution deals and funding across the Midlands, the North and the Oxford to Cambridge corridor. Here they are region by region, with what each could mean for property demand.
West Midlands: Birmingham, Wolverhampton and the Black Country
The West Midlands gets one of the Budget’s regional spotlights. None of the projects named there come with new Budget funding, although being listed as a government priority tends to help when business cases and funding bids come round, and most of them are already well under way.
Birmingham East Mayoral Development Corporation
The biggest name on the list is the Birmingham East Mayoral Development Corporation, which Mayor Richard Parker launched in May 2026 and describes as the largest in Britain. It covers an £11 billion regeneration of the east side of Birmingham city centre, with a target of 20,000 new homes and more than 50,000 jobs.
The sites include the £4 billion Knowledge Quarter, the £2 billion Smithfield scheme next to the Bullring, a creative hub in Digbeth, the land around HS2’s Curzon Street station, and a £3 billion Sports Quarter built around a planned 60,000-seat stadium. What matters most for investors is the scale, because a single body with planning and land powers over an area this size can move far faster than the usual patchwork of separate applications. With our head office in Birmingham, it’s a project our team will be following closely.
Wolverhampton city centre
The Budget refers to “transforming Wolverhampton city centre”, and the council has a detailed plan behind that phrase. Following a consultation that closed in August, its cabinet approved the Our Future City Centre Plan, which identifies 33 development sites across ten regeneration areas and allows for up to 6,750 new homes, around 4,600 of them by 2042. The largest share is earmarked for Canalside, with 1,700 to 1,800 homes, followed by Darlington, Springfield and Molineux.
That’s a big step up in city centre living, and it shows the council is planning for a much larger residential population in the centre over the next 15 years. It’s also the setting for Penny Place, the conversion of the former Marks & Spencer building on Market Street, which we’re selling exclusively.
Coventry, Dudley and the wider region
Beyond the two cities, the Budget highlights several projects that will change how the region connects.
- West Midlands Investment Zone: advanced manufacturing at sites such as Green Power Park in Coventry.
- Black Country Metro: the new tram extension from Wednesbury to Dudley town centre, with a further extension to Merry Hill planned.
- Midlands Rail Hub: up to 300 extra trains a day into and out of Birmingham and up to 20 million extra seats, according to Midlands Connect, with parts of the scheme due in service in the early 2030s.
- Stafford: £10 million from the Growth Mission Fund to refurbish Stafford Market Hall and create a business incubation hub.
East Midlands: Derby and Loughborough
A little further east, Derby gets more hard numbers than anywhere else in the Budget. Almost all of them come from major employers in rail and aerospace, which tells you the kind of jobs and tenants the city is likely to attract.
Alstom is investing £1 billion at its Litchurch Lane works to build the new TransPennine Express fleet, directly supporting over 350 jobs. Rolls-Royce has committed £140 million to new engineering and manufacturing facilities in the city, and the government is co-investing with the company in a 10-year, £2.5 billion programme for next-generation gas turbine technology, which is expected to support 3,300 jobs at Rolls-Royce and its partners by the end of 2029.
The city also gets a Business Rates Retention Zone at Infinity Park Derby, so growth in business rates there can be kept and reinvested locally, while the Team Derby partnership with Mayor Claire Ward will focus on regeneration and jobs in rail, aerospace and advanced manufacturing. Down the road, Kindeva is investing £200 million in Loughborough to make respiratory medicines.
Engineering employers on this scale bring skilled workers on good salaries, and plenty of them rent when they first move to a city. That’s steady demand, and it’s the kind that supports property investment in Derby over the long run.
The North: Leeds, Manchester and Liverpool
Further north, the focus shifts to transport and city centre regeneration under a new Northern Growth Strategy, and Leeds comes out of it particularly well.
Leeds
The government has confirmed over £300 million for the Leeds Existing Station Programme, a package of upgrades to add capacity and improve access at Yorkshire’s busiest station, due by 2030. Leeds will also get a new Leeds City Fund, which lets the city keep 100% of business rates growth to reinvest, along with funding to expand the Leeds College of Building for over 2,000 more learners. Northern Powerhouse Rail is moving forward as well, with a new station planned for Bradford at the Interchange site.
Manchester
Convatec will invest over £500 million over the next decade in a new global R&D hub in Manchester. Greater Manchester is also in the first wave of new Business Rates Retention Zones, and it’s one of the city regions receiving City Investment Funds to support denser city centre development.
Liverpool
In Liverpool, £20 million from the Growth Mission Fund will go towards restoring the long-derelict Littlewoods site and turning it into a 260,000 sq ft creative campus for film, TV, gaming and digital screen industries. Liverpool City Region gets its own Business Rates Retention Zone too.
Across the North
- Business Rates Retention Zones in the North East, Tees Valley, Hull and East Yorkshire, and York and North Yorkshire.
- A66: main construction starts in November 2026 on a continuous 50-mile dual carriageway between the M6 and A1(M).
- Sheffield and Doncaster: match funding for innovation space in the Don Valley corridor, and support for South Yorkshire’s plan to bring Doncaster Sheffield Airport into public ownership.
- Blyth: over £85 million for the Offshore Renewable Energy Catapult’s test facilities.
- Bury: £10 million for the town’s Indoor Market.
- Northern Olympics: £7 million for a feasibility study into a bid to host the Games in the 2040s.
Oxford to Cambridge Growth Corridor
Between Oxford and Cambridge, the Budget’s concern is space. It calls the corridor a “world-leading innovation hub” but says it needs more homes, offices and lab space to reach its potential, particularly as East West Rail comes through.
Vertex Pharmaceuticals will invest over £300 million in a new research facility in Oxford, and the government will launch a consultation on a development corporation for the city by the end of the year. In Cambridge, a pilot will give the Greater Cambridge Development Corporation direct access to government finance to assemble land and invest alongside private partners. If it works, the government plans to extend it to Oxford. Work is also continuing on a Business Rates Retention Zone for the Cambridge Biomedical Campus from 2028.
For Oxfordshire, and towns like Bicester on the East West Rail line, more research jobs alongside a shortage of homes is a combination that keeps rental demand strong. Our Oxfordshire Property Investment Guide looks at the county in more detail.
Elsewhere in the UK
Outside England’s main growth regions, the Budget also names projects in Bristol, London and the devolved nations.
| Area | What the Budget names |
|---|---|
| Bristol | £10 million to unlock private investment in Bristol Temple Quarter, a regeneration zone planned for tens of thousands of homes and jobs, plus £45 million for new homes at Brabazon |
| London | Tax Increment Financing at Euston to fund Underground upgrades, and a Business Rates Retention Zone at Stratford |
| Norwich | £424 million for the John Innes Centre and Sainsbury Laboratory at Norwich Research Park |
| Scotland | Up to £750 million for the national supercomputer in Edinburgh; the Lanarkshire AI Growth Zone has attracted £8.2 billion of private investment |
| Wales | £30 million to progress Cardiff Parkway railway station |
| Northern Ireland | £7.5 million for Queen’s University Belfast’s Cyber AI Hub |
What this means for property investors
When major employers arrive, people follow, and many of them rent while they settle in. The cities with new jobs, better transport and a plan for more homes in the centre are the ones best placed to see rental demand and values hold up over time.
That matters more after this Budget. From 6 April 2027, tax on rental income rises to 24%, 44% and 49% in England, Wales and Northern Ireland, which will reduce net rental returns. Capital Gains Tax on residential property stays at 18% and 24%, so with rent now taxed more heavily than gains, long-term growth makes up a bigger share of the return for many investors. If you’re weighing up where to invest in the UK, the growth prospects of each city now deserve a place near the top of the list.
Investing from overseas
The same applies if you invest from abroad. The new rental income rates cover non-resident landlords, rent is still paid through the Non-Resident Landlord Scheme, and the 2% Stamp Duty surcharge for non-UK residents hasn’t changed. Regional cities have long appealed to overseas investors because entry prices are lower than in London, and the Budget adds to the regeneration pipeline behind them.
Some caveats
- Not all of it is government money. Alstom’s £1 billion, Convatec’s £500 million and Vertex’s £300 million are private investments that the Budget welcomes.
- Much of it is conditional. Many projects are still “subject to business case” or “subject to final terms”, so timelines can move.
- Regeneration takes years. Birmingham East and Wolverhampton’s city centre plan run well into the 2030s and 2040s, which suits patient investors far more than anyone looking for a quick return.
FAQs
Which regions benefit most from the Autumn Budget 2026?
The Budget names projects across England, Scotland, Wales and Northern Ireland, with the most detail for the Midlands, the North and the Oxford to Cambridge corridor. Derby, Leeds and Liverpool have the most specific funding figures, while Birmingham and Wolverhampton are highlighted through existing regeneration plans.
Does the Budget include new money for Birmingham?
Not directly. It highlights the Birmingham East Mayoral Development Corporation, an £11 billion regeneration programme targeting 20,000 homes and over 50,000 jobs, along with the West Midlands Investment Zone and the Midlands Rail Hub, but it doesn’t attach a new funding figure to them.
What is a Business Rates Retention Zone?
An area where councils can keep 100% of growth in business rates above an agreed baseline for 25 years and reinvest it locally. The Budget sets out nine new zones, including Greater Manchester, Liverpool City Region, the East Midlands and the North East, subject to business cases and legislation.
Did the Budget change tax for property investors?
Yes. Tax on rental income rises to 24%, 44% and 49% from 6 April 2027, including for non-resident landlords, while Capital Gains Tax on residential property and the 2% Stamp Duty surcharge for non-UK residents are unchanged.
Can I invest in these regions from overseas?
Yes. Overseas investors can buy UK property, and many Joseph Mews clients invest remotely. Non-UK residents pay a 2% Stamp Duty surcharge, and rental income is paid through the Non-Resident Landlord Scheme.
Talk to our team
If you’d like to know which cities suit your goals after the Budget and what the tax changes mean for your plans, speak to one of our property consultants.
This article is for general information only and does not constitute financial, tax or legal advice. Figures are taken from HM Treasury’s Autumn Budget 2026 and the sources linked, and many projects remain subject to business cases and final approval. Property values can go down as well as up. Please seek independent advice before making any investment decision.