Landlords could face annual property tax under Burnham
8:59 AM, 28th August 2026, 4 days ago
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Landlords could become liable for an annual property tax under proposals that would replace council tax and stamp duty with a charge paid by owners.
The Prime Minister Andy Burnham is facing pressure from Labour figures and left-leaning think tanks to consider the overhaul, although he has said major reform is not imminent.
The model previously backed by Mr Burnham would impose a yearly charge of 0.48% of a property’s value, The Standard reports.
Now one think tank is proposing a higher rate of 0.96% which would apply to second homes, empty properties and homes owned by non-residents.
The published plans do not say that every privately let property would automatically attract this rate.
Calls for reform
Michael Jacobs, an emeritus professor of political economy at Sheffield University, rejected claims that Mr Burnham would have to abandon policy ideas because of pressure on the public finances.
He told BBC radio: “That view is incredibly dangerous and is wrong.
“Abolition of council tax and stamp duty and their replacement by a proportional property tax.”
Oxford professor Ben Ansell said: “Our tax system has increasingly shifted responsibility towards younger workers.”
Bills move to owners
Under the ‘Fairer Share’ model, liability for the new tax would move from tenants to property owners.
A home valued at £250,000 would attract a £1,200 annual bill at 0.48%, while the charge on a £500,000 property would be £2,400.
At the higher 0.96% rate, the respective bills would rise to £2,400 and £4,800.
Estimates suggest that London’s homeowners would contribute an additional £7.5bn each year, with hundreds of thousands of residents facing increases capped initially at £1,200 annually.
Stamp duty remains
Mr Burnham has supported the principle of proportional property taxation but has made clear that an immediate overhaul is not planned.
Fairer Share would abolish stamp duty on owner-occupied homes, while retaining it for second home and non-resident buyers.
The campaign says more than 100,000 people have signed its petition calling for council tax and stamp duty to be replaced.
Its proposal also includes transitional protection and payment deferrals for homeowners who own valuable properties but lack the income to meet their bills.
Tags:
Andy Burnham property tax, Council Tax Reform, Landlord property tax, proportional property tax, stamp duty reform, UK Landlords
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Member Since April 2020 - Comments: 114
10:11 AM, 28th August 2026, About 3 days ago
Worth paying the early repayment charges to get out now if this is the case because what with Section 24, higher interest rates, the ever increasing cost of maintaining property and forthcoming EPC C legislation on older type property I am soon going to be subsidising tenants to live in my properties.
and just reading the headlines on some of the other articles posted on here ie rent freezes still being considered, Government admits no assessment of burden on landlords I think its time to wake up from this nightmare !
Member Since October 2023 - Comments: 48
10:19 AM, 28th August 2026, About 3 days ago
Yeah, let’s pay the rent too, so they can free load just like our benefit, give as much as you can system, nobody wants to work hard like we did. And charge more tax on the hard workings people. ( Morning moan over) 🥸
Member Since October 2023 - Comments: 249
10:24 AM, 28th August 2026, About 3 days ago
We already have this system of property tax here in Northern Ireland. This means that the landlords pay the tax (we call it rates) not the tenant.
The reason government are pushing this, is because they no longer have to pay council tax relief (unemployed, low income, pip) etc
Because landlords are not on benefits, we get no relief.
Member Since January 2015 - Comments: 1572 - Articles: 1
10:34 AM, 28th August 2026, About 3 days ago
The cynic in me thinks that Labour want all PRS landlords out so that Local Authorities can make use of all the tents they bulk purchased.
If Labour thinks that the Property Tax wont be added to the rent then they are more stupid than they look. But would it also be classed as an allowable expense against income from property tax? Just a thought.
Member Since February 2020 - Comments: 389
10:34 AM, 28th August 2026, About 3 days ago
Reply to the comment left by DP at 28/08/2026 – 10:11
I did originally plan never to sell my property.
But the returns after tax of putting funds in an ISA and Pension will be much better if they bring in this final nail.
The only reason I would keep my property is if the rents shot up by a much larger after this introduced.
Member Since May 2017 - Comments: 821
10:44 AM, 28th August 2026, About 3 days ago
‘A home valued at £250,000 would attract a £1,200 annual bill at 0.48%’
That’s £100pcm more on the rent then. Better move rent up as high as possible now while you’ve got a chance of an increase at tribunal and before rent caps come in
Dont any lefties dare complain rents are too high
Member Since October 2013 - Comments: 1725 - Articles: 3
11:43 AM, 28th August 2026, About 3 days ago
Reply to the comment left by David100 at 28/08/2026 – 10:24
Who pays the CT in the social housing sector?
Member Since April 2020 - Comments: 114
11:53 AM, 28th August 2026, About 3 days ago
Reply to the comment left by JB at 28/08/2026 – 10:44
Thats where the rent freeze comes in to counteract it, this just goes on getting worse and worse going to cut my losses and get out of this regime, enough is enough, fed up with being regarded as a
bottomless pit of finance for this government. It’s just an onslaught now.
Member Since April 2020 - Comments: 114
12:10 PM, 28th August 2026, About 3 days ago
Reply to the comment left by CP at 28/08/2026 – 10:19
The sad thing is that theres not much you can say or do that has not been said before, its like a gramophone needle thats got stuck and all the while there is any one individual who has had the temerity to have invested in property and let it out, regardless of how much they worked, risks they took, money they have lost through bad tenants, pension fund they thought they might have one day, this government will not stop until they have taxed us out of existence.
Member Since March 2021 - Comments: 15
1:21 PM, 28th August 2026, About 3 days ago
Reply to the comment left by David100 at 28/08/2026 – 10:24
That is a very interesting point you make. Basically after the landlord increases the rent by the extra amount they have to pay, the person on pip, unemployed etc will have to pay that and lose the relief that they previously received. Therefore the poor vulnerable tenant is being screwed by the government who will then blame it on the landlord.