Could Andy Burnham's proposed land tax force landlords to sell?

Could Andy Burnham’s proposed land tax force landlords to sell?

Leaflet about a proposed land value tax held in front of homes with a for sale sign, illustrating housing tax reforms.
9:33 AM, 24th June 2026, 3 weeks ago 87

Hello, Andy Burnham has been reported to be considering replacing council tax and stamp duty with a new tax based on property values.

Under the proposal, the tax would be paid by property owners rather than tenants. Owner-occupiers would reportedly pay 0.48% of the property’s value each year, while landlords, overseas owners and second-home owners could face a higher rate of 0.96%.

For a landlord with a property worth £250,000, that would mean an annual bill of £2,400. On a £500,000 property, the charge would rise to £4,800 a year.

Would landlords realistically be able to absorb another cost of this size?

Some may try to recover it through higher rents, but that may not be possible if mayors are also given powers to freeze or cap rents.

Even without rent controls, tenants may simply be unable to afford the increases needed to cover the tax.

I also wonder whether the higher rate would lead to an exodus of overseas landlords and second-home owners, while persuading more UK landlords that remaining in the private rented sector is no longer financially worthwhile.

Could this proposal reduce the number of homes available to rent and push rents even higher?

Would a property tax of this size be the final straw for you, or could it be a fairer replacement for council tax and stamp duty?

Thank you.

Altan


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Comments

  • Member Since October 2022 - Comments: 425

    8:33 PM, 8th July 2026, About 4 days ago

    Isn’t everyone missing the point which was made on a recent Lease Knowledge Partnership website of a report by an MP that digitisation by HMLR of Titles to Land ownership 30 years ago either does not contain relevant information or this relevant information is hidden.
    The report is complex in its examination of what appears to have been digitisation by incompetent government employees.
    So the issue is how can there be a tax on land when it’s not clear who owns it?

  • Member Since May 2015 - Comments: 2256 - Articles: 2

    9:00 AM, 9th July 2026, About 3 days ago

    Reply to the comment left by Kizzie at 08/07/2026 – 20:33
    Guess who owns the land, tax them and wait to see if they complain. Standard government tactic.

  • Member Since November 2018 - Comments: 42

    9:18 AM, 9th July 2026, About 3 days ago

    Land Tax the landlord = rent rise for tenants, fact of life
    2% rise in income tax for landlords from April 2027 = rent rise for tenants.
    Notably the government has not said if the 2% rise can be claimed against expenses items yet, we will see!!

  • Member Since October 2022 - Comments: 425

    9:21 AM, 9th July 2026, About 3 days ago

    The Maluku

    The point is that the identity of the true owner and other relevant information is not accessible to those for eg pursuing Due Diligence and the public.

  • Member Since May 2015 - Comments: 2256 - Articles: 2

    12:26 PM, 9th July 2026, About 3 days ago

    Reply to the comment left by Kizzie at 09/07/2026 – 09:21
    Point taken, my remark was strictly ‘tongue in cheek’.

  • Member Since May 2018 - Comments: 2206

    12:10 PM, 10th July 2026, About 2 days ago

    Reply to the comment left by Kizzie at 08/07/2026 – 20:33
    The proposal is for a tax on property value; but it’s still flawed, because property value isn’t clear either. The only time you really know the value of a property is when you sell it. At every other time a determination of price is highly subjective.

    A tax on the acreage of land would be less subjective but would be highly environmentally damaging and would cause a lot of other collateral damage. A tax on the square footage or metreage of residential accommodation under two metres in height and excluding garaging outbuildings, cellars, unconverted lofts etc. to REPLACE Council tax would be less subjective, arguably fairer, but still not necessarily ‘fair’ because the large house might be being provided with essentially the same services as the small house. But if that Council Tax Replacement Tax were to be introduced Council House and Social Housing owners should pay that too, on behalf of their subsidised tenants who may well already be paying far less than market rent for their properties and also have the right to buy their properties at a discount.

    But the real problems with all these proposals are that they are essentially an asset-grab under a left-wing government with a majority that collectively only care about who they can tax to pay for benefits. And just as what started out as a Rental Reform Bill, with some reasonable proposals, turned into the Labour Renters Rights Act, with damaging, inflationary consequences because of this left-wing majority, if this government were to do this it would be a disaster. Any new tax will become additional tax at a time when the tax take hasn’t been higher since just after the second world war and when the government has CLAIMED it wants economic growth, but pursues policies that damage growth in the economy.

    Andy Burnham hasn’t been elected. He doesn’t have a mandate for this left-wing c**p.

  • Member Since June 2026 - Comments: 5

    8:25 AM, 12th July 2026, About 3 hours ago

    The question of whether a land tax forces sellers is worth grounding in who is already primed to sell regardless. I run GalimAI, where we track UK property-holding companies against public financial and legal signals. Around 40,015 of them are ageing and shrinking at the same time, older directors sitting alongside contracting balance sheets. That cohort tends to exit on life-stage and finances rather than on any single policy, so a tax like this would not so much create the selling pressure as accelerate a wave already building underneath. The real question is what it does to the timing and the discount, not whether the stock eventually moves. Dror, GalimAI

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