Burnham’s Property Tax Plans — What’s Confirmed vs Speculation

Since Andy Burnham became Prime Minister on 20 July 2026, landlord forums have been full of alarming claims about property taxes. Some of it is accurate. A lot of it is not.

The confusion comes from three separate things being blurred together: measures the Government has actually confirmed, ideas Burnham has personally supported in the past, and legislation that was already passed before he took office. Treating those as one thing produces the panic currently circulating.

Here is each category, separated out.

Category 1: Actually confirmed

The list is short.

VAT removed from domestic electricity, 1 October 2026

VAT on household electricity in Great Britain drops from 5% to zero for six months from 1 October 2026, saving roughly £45 a year on the average cap.

Why landlords should care: if you let properties with bills included — HMOs, all-inclusive lets, serviced accommodation — this is a direct reduction in your operating cost for those six months. If bills sit with the tenant, it reduces their outgoings, which marginally helps affordability and arrears risk.

It is temporary. Budget for it ending in April 2027 unless extended.

Category 2: Ruled out (for now)

Replacing council tax and stamp duty with a property tax

This is the one that caused the panic, and it is the one that has been most clearly shut down.

Following press reports that the Government was considering replacing both taxes with a single annual charge based on property value, Burnham was asked directly whether buyers could be reassured no such move was planned. His answer: “Yes, I can say that quite clearly. That won’t be happening.”

He added that it was not the case that plans on that scale were being brought forward at this time, and questioned where the stories had come from. Downing Street separately dismissed the suggestion that removing council tax was under consideration, describing the reports as not true.

Stamp duty will not be reformed in this year’s Budget.

The wider context: the Fairer Share campaign proposes a proportional property tax at 0.48% of value annually, with a higher rate for landlords and second homes, shifting liability from occupier to owner. Burnham has praised this model in the past as a mayor and candidate. He has not committed a government to it.

Note the qualifier though: “at this moment in time” is not “never”. He continues to argue the system is unfair, pointing out that council tax bands still rest on 1991 valuations. Reform of some kind remains live. Wholesale replacement does not.

Category 3: Already law before Burnham

Several things being attributed to the new Prime Minister were legislated under the previous government. Blaming him for these is misplaced, but they still cost you money.

High Value Council Tax Surcharge — April 2028

Properties valued over £2 million face an annual surcharge of roughly £2,500 to £7,500 on top of standard council tax, using 2026 valuations. If you let such a property, you pay it.

This affects a small number of landlords, and it was confirmed before Burnham took office.

Making Tax Digital for Income Tax

Live since April 2026 for landlords with qualifying income over £50,000, dropping to £30,000 in April 2027 and £20,000 in April 2028. Quarterly digital reporting replaced the annual return.

The Renters’ Rights Act

Royal Assent October 2025, main provisions live 1 May 2026. Section 21 abolished, periodic tenancies, rent increase limits. Nothing to do with the current Prime Minister.

Section 24 mortgage interest relief

Fully phased in years ago. Still the single biggest tax burden on higher-rate individual landlords, and still frequently misattributed to whoever is currently in office.

Category 4: Speculation — treat with caution

These appear in headlines but are not policy.

• Mansion tax threshold dropping from £2m to £1.5m. Reported speculation ahead of the Autumn Budget. Not announced.
• Capital Gains Tax rises on residential property. Rates were unchanged as at late July 2026. Some in Cabinet have argued for taxing gains at income tax rates. Talk, not policy.
• National Insurance on rental income. Floated by commentators. No proposal published.
• A wealth tax. Discussed. Nothing announced.
• Rent controls. Burnham sought powers for these as Mayor in 2023. Nothing has been proposed nationally.

The threshold freeze running to April 2031 is worth noting as a real if quiet cost: rising rents drag more of your income into higher bands without any rate changing.

What the direction of travel suggests

Setting aside individual measures, some signals are worth reading.

• Angela Rayner has returned as Housing Secretary — the most significant appointment for the property sector.
• Burnham has framed his administration as a “cost of living government”, with early moves on energy bills.
• He has pledged the biggest council house building programme since the Second World War and to end rough sleeping.
• Fiscal devolution is his stated priority — giving mayors a share of nationally raised tax, rather than a new national property tax.
• He has previously advocated tougher enforcement against substandard rented homes, including an independent inspection regime and stronger compulsory purchase powers for councils.

For compliant landlords, that last point is arguably more consequential than any tax speculation. The likely direction is more enforcement and higher standards rather than a new headline tax.

What to actually do

1. Do not restructure your portfolio on speculation. Incorporating or selling in response to a tax that has been explicitly ruled out is an expensive mistake.
2. Watch the Autumn 2026 Budget. That is where real decisions land, not in weekend headlines.
3. If you have bills-included lets, factor in the VAT change from October, and remember it is temporary.
4. Check your MTD position. This is a confirmed obligation with penalties, unlike most of what is being discussed.
5. Get compliance genuinely in order. The clearest signal is more enforcement, and that is within your control.
6. If your portfolio is substantial, speak to a property accountant about your overall exposure — not about headlines.

Frequently asked questions

Is the 0.48% property tax happening?

Not currently. The Prime Minister has ruled out replacing council tax and stamp duty with a single property tax at this stage. The 0.48% figure comes from the Fairer Share campaign’s modelling, not from government policy.

Will landlords pay council tax instead of tenants?

No. Liability is unchanged. In standard single-household tenancies the tenant remains liable. HMO landlords remain liable as before. See our full guide to landlord council tax liability.

Should I sell up?

That is a personal financial decision and this is not advice. But making it on the basis of a tax that has been publicly ruled out would be reacting to something that has not happened. If you are weighing it seriously, take proper advice on your actual numbers.

When is the Autumn Budget?

A date had not been confirmed at the time of writing. Watch for the announcement — that is when speculation becomes policy or disappears.

Does any of this apply outside England?

Tax measures such as VAT and MTD apply UK-wide or GB-wide. Council tax operates differently in Scotland, and Northern Ireland uses domestic rates. The Renters’ Rights Act applies to England only.

Related guides

• Are landlords going to pay council tax instead of tenants?
• Landlord compliance deadlines 2026–2030
• The PRS Database explained
• How Landlords Can Avoid Paying 40% Tax On Rental Income In 2026
• Is Buy-To-Let Still Worth It In 2026? An Honest Landlord Guide
• Making Tax Digital For Landlords — Everything You Need To Know In 2026
• Can Landlords Be Liable For A Tenant’s Council Tax Debt?
• Semi-commercial property: the tax saving and the catch