Updated 23/07
Andy Burnham became the UK Prime Minister on the 20th of July 2026. Naturally, this development is calling into question what changes Burnham plans to enact as PM. This blog reports on potential and unconfirmed reforms and what we may expect as tax changes in the future.
In the past, Burnham has lended his support to huge reform to property tax.
Going back as early as 2010, Burnham has expressed his wish to abolish stamp duty tax, the one-time property transaction tax, and replace it with a ‘land value tax’, an annual ongoing land tax based on the value of the land on which the property is situated as opposed to the building itself.
More recently, Burnham has supported Fairer Shares suggestion of PPT – Proportional Property Tax. This tax is proposed to replace council tax and stamp duty, the latter of which Burnham has labelled ‘highly regressive’. Burnham has criticised the fact that council tax bands in England are based on property valuations from 1 April 1991.
PPT would be calculated at a flat rate of 0.48% of the current value of the property, annually. For second homes, empty properties or overseas buyers, this percentage would rise to 0.96%. To help mitigate such a change, there would be an initial cap ensuring nobody pays more than £1200 per year above their usual annual council tax bill.
Fairer Share claim that this tax would benefit 18 million households, and that only property owners in London and the South East would be paying more long term.
In general, the tax would only be payable by property owners, meaning renters would no longer be obligated to pay council tax. This sounds positive but has potential to encourage increased monthly rent costs and a decline in the availability of properties on the rental market as landlords struggle to pay additional tax.
There would be no PPT on downsizing to a home with a lower property value, a proposal designed to encourage fresh opportunity for young buyers as older generations downsize.
The question of what technology would now be used to assess property value has been raised, as this would be a gargantuan project involving every single property in England, at the very least.
It is not currently clear how the proposal of such reforms involves Wales or Scotland, but it is unlikely to be the same UK-wide.
The Wales Act 2014 and Wales Act 2017 devolved taxation to the Welsh government, giving the Senedd the power to set Welsh property taxation rates. On 1 April 2018, the property transaction tax in Wales changed from stamp duty to LTT – Land Transaction Tax, reflecting the fact that Wales is now operating separately to the rest of the UK in relation to property tax. In addition, Wales was exempt from the recent rent reforms actioned in England.
First minister of Wales and leader of Plaid Cymru, Rhun Ap Iorwerth, has announced plans to meet very soon with Andy Burnham to discuss how to further the process of devolution for Wales.
The introduction of a land value tax or proportional property tax is still unconfirmed, and we await further clarification from the government. Such developments are not imminent and may take a long time to be implemented, should they be confirmed.
Whatever may happen in the future with property tax reform, our conveyancing team is here to guide you through every step.
What we know about Andy Burnham’s policies – BBC News
Andy Burnham’s Potential Policies: What They Could Mean For Homeowners – HomeOwners Alliance
Will Burnham cut stamp duty? Here’s what could change for property tax