Landlords could face annual property tax under Burnham
8:59 AM, 28th August 2026, 3 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
1:45 PM, 28th August 2026, About 3 days ago
Reply to the comment left by [email protected] at 28/08/2026 – 13:21
With non-benefit tenants If the landlord passes on the increase which is being levied on the landlord in increased rent then presumably they won’t notice it because it just replaces the council tax they were previously paying, give or take?
Member Since April 2022 - Comments: 145
2:15 PM, 28th August 2026, About 3 days ago
I am guessing that any abolition of stamp duty would still leave the 5% surcharge, otherwise flipping properties might actually be viable again for those of us that build/refurbish.
Also, if stamp duty was abolished and an annual tax brought in would I get any discount for the nearly £90000 stamp I already paid buying my house ten years ago, or would I simply be effectively double taxed? Oh yeah, wait, this is Labour and the Uk, of course I would be double taxed.
Member Since October 2013 - Comments: 1725 - Articles: 3
2:46 PM, 28th August 2026, About 3 days ago
Reply to the comment left by JamesB at 28/08/2026 – 14:15
You cannot replace something which has already been paid (unless you are Rayner), unless HMRC repays it, then applies the new tax going forward.
I realise this is Labour ideological tax policy, but surely, there would be huge legal challenges.
Member Since January 2017 - Comments: 129
2:47 PM, 28th August 2026, About 3 days ago
When these rumours get reported, it make people re-consider their plans. I have already given one of my tenants notice to leave on the back of previous CGT increases that may or may not happen.
If I’m going to be making less profit renting houses, then I’m going to need to look at moving money into other areas and or reducing down BTL mortgages etc.
I know a landlord who has sold 4 properties already on the back of the proposed EPC changes that may or may not come in. 4 Families who had been with him for years paying below market rents, now worse off not just financially due to “proposed” changes.
Member Since October 2017 - Comments: 112
3:11 PM, 28th August 2026, About 3 days ago
Yet another thing to exacerbate the uncertainty in the housing market. Why risk paying £1000s in SDLT when it might be changed as you won’t get that back.
Member Since October 2023 - Comments: 249
5:32 PM, 28th August 2026, About 3 days ago
Reply to the comment left by NewYorkie at 28/08/2026 – 11:43
In the social housing sector, tenants pay the rates monthly as part of the rent.
Member Since October 2023 - Comments: 249
5:34 PM, 28th August 2026, About 3 days ago
Reply to the comment left by [email protected] at 28/08/2026 – 13:21
Correct.
Its a nice little earner.
Member Since October 2023 - Comments: 249
5:40 PM, 28th August 2026, About 3 days ago
Reply to the comment left by DP at 28/08/2026 – 13:45
Unless…………they were already getting council tax relief (like if they were on some benefit or other)
That wont be passed on to the landlord, so he will have to add the cost to the rent, meaning poor tenants will lose out.
Its slight of hand.
Member Since October 2025 - Comments: 1
7:31 AM, 29th August 2026, About 3 days ago
Reply to the comment left by David100 at 28/08/2026 – 17:40
If this should ever apply,many landlords without any mortgage will leave their rental property empty pending a change of government.
Member Since October 2013 - Comments: 1725 - Articles: 3
8:07 AM, 29th August 2026, About 3 days ago
Reply to the comment left by DP at 28/08/2026 – 13:45
If this new tax includes an element for stamp duty, the landlord would need to know how much that element is because that can’t be passed on in rent.
It will be years before valuations can be reached and yet more years tied up in legal challenges. This bunch of financial illiterates should be long gone before then.