Andy Burnham's land tax ideas put council tax overhaul in focus

Last updated: 3 July 2026

Andy Burnham's long-standing support for replacing council tax and stamp duty with a land-based levy has moved to the centre of Britain's political debate this week. The immediate question for households is who would pay more, who would pay less and what a national change could do to the housing market.

The Full Story

Burnham has argued for years that private land is under-taxed and has backed replacing council tax and stamp duty with a land-based levy. Yet no final design has been published in the supplied reports. A Telegraph calculation modelled a 1% annual charge on private land, while City AM reported separate speculation about a tax of 0.48% of a home's current market value. Those are different models, and neither rate is presented as confirmed policy.

The debate is sharper because council tax still relies on property valuations dating back to the early 1990s. Supporters of change argue that a land or property-based system could shift more of the burden towards valuable assets and, if stamp duty were removed, reduce the cost barrier when people move. Critics say higher-value areas in London and southern England could face steep increases, especially households with expensive homes but limited cash income.

Housing conditions make the argument more politically charged. City AM reported that property values in the South, excluding London, rose only 0.1% in the second financial quarter, while growth in the North West accelerated to 3.9%. The Guardian also reported that private renters in London spend about 40% of their income on housing, against a national average of 36%, showing that high asset values do not mean every London household is comfortably off.

The tax argument is tied to Burnham's broader promise to rebalance power and investment. The BBC's account of his wider agenda points to devolution, transport investment and stronger public control of utilities. Burnham is expected to give a speech on devolution next week.

Who's Involved

Andy Burnham is the central figure because of his criticism of the current property-tax system and support for a land-based alternative. Sir James Cleverly, the shadow secretary of state for housing, communities and local government, attacked the idea as a burden on homeowners with gardens, while Prof David Miles of Imperial College London said a land tax could affect house prices.

Property-market figures are focused on knock-on effects. Jonathan Hopper, chief executive of Garrington Property Finders, warned that shifting property-tax liability towards owners could hit landlords in high-value southern markets and reduce rental supply. Nathan Emerson, chief executive of Propertymark, said reviewing stamp duty could reduce barriers to moving.

By the Numbers

• Under the Telegraph's hypothetical 1% land-value model, average annual bills were estimated at £1,650 in the South and £600 in the North.
• The same calculation put an average London bill at £2,172, up 36% from £1,596, excluding the Mayor of London's precept.
• Wandsworth was modelled at £2,958, a 472% rise from an average council tax bill of £517.
• City AM reported house-price growth of 0.1% in the South, excluding London, versus 3.9% in the North West.
• The Guardian reported 2025 London house prices at 10.6 times average earnings, compared with five times earnings in the North East.

These figures do not describe a final tax plan. They show how outcomes can change with the tax base, rate and local land or property values.

What This Means

For households across Britain, the dividing line is not simply North versus South. A land-based levy could lower bills for many owners in lower-value areas while raising them for people sitting on expensive land. Any workable design would depend heavily on reliefs, deferrals, valuation rules and how the switch was phased in; none of those details appears in the supplied reports.

Renters could also feel indirect effects. Hopper warned that higher annual liabilities could push some landlords out of the market, reducing choice for tenants, while Emerson argued that abolishing stamp duty could make it easier for owners to move.

What to Expect

The next concrete marker in the supplied reports is Burnham's expected speech on devolution next week. No source provides a confirmed date for a land-tax announcement, final rate, valuation method, exemptions, deferrals or transition timetable, so current bill estimates should be treated as scenarios rather than settled charges.

FAQ

What is Andy Burnham's land tax proposal?

Burnham has backed replacing council tax and stamp duty with a land-based property levy. The supplied reports do not contain a final design and discuss different possible models.

Would Andy Burnham abolish council tax?

He has previously advocated replacing council tax, alongside stamp duty, with a land-based system. No implementation timetable or final legislation is provided in the sources.

How much could homeowners pay under a land value tax?

A Telegraph model using a 1% annual charge estimated average bills of £1,650 in the South and £600 in the North. Those are hypothetical calculations, not confirmed charges.

Would London and the South pay more?

Under the Telegraph's 1% model, many southern areas would pay more because land values are higher. London was estimated at an average £2,172 a year, but the actual impact would depend on the final design.

Could a land tax affect renters and house prices?

Prof David Miles said a land tax could affect house prices, while Jonathan Hopper warned higher owner liabilities could push some landlords out of the market. Nathan Emerson argued that abolishing stamp duty could reduce barriers to moving.