Andy Burnham's Property Tax Reform: What High Net Worth Individuals Need to Know

With Andy Burnham emerging as the frontrunner to lead the Labour Party following Sir Keir Starmer's resignation, individuals with significant property holdings should be paying close attention. His long-standing commitment to overhauling property and land taxation could have material consequences for those at the upper end of the market.

The Proposed Reforms

Burnham has consistently advocated for replacing council tax and stamp duty with a land value tax — an annual levy charged on the value of the land itself, rather than the buildings on it. He has also previously expressed support for the Fairer Share model: a single annual charge of 0.48% of assessed property value, doubling to 0.96% for second homes, overseas buyers, and empty properties.

For context, a property valued at £3 million would attract an annual charge of approximately £14,400 under the standard rate — a significant uplift for those accustomed to council tax bills calibrated on 1991 valuations that bear no relation to current market values.

The Impact on London and Prime Property

The reforms are explicitly designed to redistribute the tax burden upwards. Modelling indicates that a proportional property tax could generate approximately £7.5 billion from London alone, with hundreds of thousands of households facing increases of around £1,000 or more annually. In the capital's highest-value areas — Westminster and Wandsworth among them — annual charges could increase by as much as fourfold or fivefold under a full land value model.

For those holding portfolios of high-value residential property, the effect would be compounded. Second homes and investment properties would attract the doubled rate, and there is a broader signal from Burnham's agenda — including openness to aligning capital gains tax with income tax rates and replacing inheritance tax with a care levy — that asset-rich individuals should expect to carry a greater fiscal burden under his prospective administration.

Practical Considerations

Property experts broadly expect that any reform would be targeted for the period following the next general election, anticipated in 2029. No legislation has been tabled and no formal policy document published. However, the direction of travel is clear, and some buyers are already factoring anticipated value corrections into offer prices.

For those likely to be impacted, now is the time to review property portfolios with an eye to long-term tax exposure, assess the treatment of second homes and overseas-held assets, and consider the interaction of any prospective property levy with broader estate and succession planning.