Andy Burnham’s Housing Plans: What Could They Mean for Homeowners and Buyers?

Updated: What has changed under Andy Burnham’s administration?

Since this article was first published, Andy Burnham has become Prime Minister and has placed the cost of living at the centre of his government’s agenda. Housing reform remains one of the key areas expected to shape the property market over the coming years, with proposals aimed at increasing affordable housing, supporting first-time buyers and reforming property taxation.

What could these reforms mean for the property market?

Since taking office, Burnham has argued that the UK’s housing shortage is contributing to the wider cost of living crisis. Rising house prices, together with sustained demand in the private rental sector, have created a market where many first-time buyers continue to struggle to afford a home. This has also created a bottleneck for existing homeowners looking to move up the property ladder, prompting the Government to consider a range of housing reforms.

How could Burnham’s proposals help first-time buyers?

Burnham has acknowledged that without enough affordable homes, many people will remain reliant on the private rental sector and housing support. He has therefore pledged a large-scale council housebuilding programme, drawing comparisons with the post-war expansion of social housing.

By increasing the supply of affordable homes, the Government hopes to reduce pressure on the private rental market, create more opportunities for first-time buyers and lower housing benefit expenditure. Burnham has also suggested raising the personal tax allowance, which could help prospective buyers save more towards a deposit.

What could this mean for homeowners and landlords?

Greater participation from first-time buyers could eventually increase demand for homes being sold by existing owners. However, Burnham has also indicated that some of the cost of these reforms could be met through changes to the tax system.

One proposal under consideration is replacing Stamp Duty and Council Tax with a Land Value Tax (LVT), based on the value of the land a property occupies. While no final details have been announced, questions remain over how any new system would affect homeowners, particularly those who are asset-rich but income-poor.

Higher Capital Gains Tax on investment properties has also been discussed, potentially increasing the tax burden for landlords and owners of second homes when they sell.

Burnham has additionally supported stronger protections for tenants. Following the introduction of the Renters’ Rights Act, tenants now benefit from greater security of tenure and restrictions on no-fault evictions, while rent increases are more tightly regulated. Together with an increase in affordable housing, these measures could encourage some landlords to review their property portfolios.

What should homeowners, buyers and landlords do?

Many of these proposals remain subject to consultation or future legislation, meaning there is still uncertainty about how and when changes could take effect. However, they point towards significant reforms in the way property is bought, owned, taxed and sold.

Whether you’re a first-time buyer, homeowner or landlord, seeking legal advice before making important property decisions can help you prepare for any future changes.

Updated by Iris Morton and Joanne Debenham sourced via gov.uk

How could Andy Burnham’s housing plans affect property owners?

Housing policy and property taxation are expected to remain key areas of debate, with Andy Burnham’s proposals placing a strong focus on increasing housing supply, improving affordability and reforming how property is taxed.

For homeowners and buyers, potential changes to Stamp Duty, Council Tax and housing development could have a significant impact on the future property market.

However, these ideas remain proposals rather than confirmed government policy, meaning the detail of any possible reforms is still uncertain.

Increasing housing supply and affordable homes

A key part of Burnham’s approach is expanding the number of affordable homes available.

He has supported a major council house building programme, with greater focus on social housing rather than other forms of affordable housing. He also supports higher-density development in towns and cities to create more homes while protecting green spaces.

Increasing supply could help improve affordability and support first-time buyers over time, although funding and delivery details have not yet been confirmed.

Could Stamp Duty be replaced with a Land Value Tax?

One of Burnham’s most significant property proposals is replacing Stamp Duty with a Land Value Tax (LVT).

Stamp Duty Land Tax is currently paid when buying residential property in England and Northern Ireland above certain thresholds. For many buyers, it adds a significant cost at a time when they are already managing deposits, mortgages and moving expenses.

Burnham has criticised Stamp Duty for many years, previously describing it as:

“A tax on the aspirations of young people to put down roots.”

His proposal would see Stamp Duty abolished and replaced with an annual tax based on the value of land.

What is a Land Value Tax?

A Land Value Tax is an annual charge based on the value of the land a property sits on, rather than the value of the building.

Supporters argue that this could:

• remove the large upfront cost of moving home;
• encourage people to move when their housing needs change;
• create a more efficient housing market.

Unlike Stamp Duty, which taxes property transactions, a Land Value Tax would apply to land ownership itself.

However, introducing such a system would raise practical questions, including how land values would be calculated and how homeowners would be protected from significant increases.

Why is Stamp Duty criticised?

The Institute for Fiscal Studies has criticised Stamp Duty because it can discourage people from moving home.

The argument is that high transaction costs may prevent people from downsizing, moving closer to work or finding a property that better suits their needs.

A Land Value Tax is often suggested as an alternative because it would not create the same barrier to buying and selling property.

Could Council Tax also change?

Burnham has also called for reform of Council Tax, which is still based on property valuations from 1991.

Critics argue that the system is outdated because property values have changed significantly since then. Possible reforms could include updating valuations or introducing a different form of annual property taxation.

What remains uncertain?

Although these proposals could have a major impact on the property market, many details are still unclear.

Questions remain over:

• how a council house building programme would be funded;
• whether Stamp Duty would definitely be abolished;
• how a Land Value Tax would work in practice;
• whether Council Tax would be replaced or reformed.

Any changes would require new legislation and consultation before becoming law.

What could this mean for homeowners?

Andy Burnham’s plans suggest that housing and property taxation could undergo significant changes in the future.

If introduced, reforms to Stamp Duty, Council Tax and housing supply could reshape the way people buy, sell and own property in England.

Housing policy changes can create uncertainty for homeowners and buyers. If you are considering buying, selling or transferring property, our experienced property team can help you understand the legal steps involved.

Contact Attwells Solicitors today for clear, practical guidance tailored to your circumstances.