Reports suggest Andy Burnham's team is examining a proportional property tax that would replace both council tax and stamp duty.
Andy Burnham is reported to be considering a proposal, based on campaign group Fairer Share's proportional property tax model, that would replace council tax and stamp duty with an annual charge of 0.48% of a home's value, rising to 0.96% for second homes, empty properties and overseas-owned homes. No formal policy has been announced.
TL;DR
Council tax bands are still based on 1991 property values. Burnham has backed a Fairer Share-style land value tax that would replace council tax and stamp duty with a flat percentage charge on current property value. The idea remains a proposal, not a confirmed policy, and would require legislation to implement.
What is being proposed
Under the Fairer Share model that Burnham has previously endorsed, owner-occupiers would pay an annual charge equivalent to 0.48% of their property's current value, replacing both council tax and stamp duty. Second homes, empty properties and overseas-owned homes would face a higher 0.96% rate. The charge would fall on owners rather than tenants.
KEY FACTS
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Why it is being discussed now
Burnham has long argued that council tax is regressive because it is based on outdated 1991 valuations, meaning a high-value London property can attract a similar bill to a much cheaper home elsewhere. The November 2025 Budget already introduced a separate high-value council tax surcharge on homes worth £2 million or more from April 2028, a narrower measure that analysts note raises comparatively little revenue against the scale of a full property tax overhaul.
What it could mean for homeowners
Supporters of the Fairer Share model argue most homeowners outside London and the South East would pay less than under current council tax. Critics, including some property industry analysts, have raised concerns about annual revaluations turning house price growth into an ongoing tax liability, and about the impact on asset-rich but cash-poor homeowners who would face a bill tied to a value they have not realised in cash.
Related Guides: How council tax bands work, Stamp duty land tax explained, Guide to the 2028 high-value council tax surcharge.
Disclaimer: This article summarises reported policy proposals that have not been confirmed as government policy and may change or be dropped entirely. It is for general information only and does not constitute tax or financial advice.
Has this proposal been confirmed as government policy?
No. As of publication, this is reported to be under consideration rather than a confirmed policy, and would require primary legislation and a valuation exercise before any implementation.
Would tenants pay the new property tax?
Under the model reportedly being examined, the tax would be paid by property owners rather than tenants directly, though analysts have noted landlords may seek to recover some of the cost through rents over time.
Sources: House of Commons Library briefing on mayoral tax powers, gov.uk council tax and stamp duty guidance, Fairer Share proportional property tax proposal.
