Andy Burnham, the Labour MP and former mayor, has endorsed a land tax proposal that would impose a £1,200 annual charge on homeowners with properties valued at £250,000. The plan, put forward by the campaign group Fairer Share, would introduce a flat tax rate of 0.48 per cent on property values, effectively replacing the current council tax system.
Details of the Proportional Property Tax
Under the Fairer Share proposal, homeowners would pay 0.48 per cent of their property's value each year. This means a property worth £100,000 would incur a £480 bill, while a £250,000 home would cost £1,200. For comparison, the average band D council tax in 2026-27 is £2,392, meaning the new tax would be almost half that amount for a £250,000 home.
Impact on Higher-Value Properties
The tax scales with property value: a £500,000 home would pay £2,400, a £750,000 home £3,600, and a £1 million home £4,800. For high-value properties, charges rise steeply: £9,600 for a £2 million home, £24,000 for £5 million, and £48,000 for a £10 million property.
Expert Reactions and Concerns
Rob Dix of Property Hub commented: "With Burnham, I think the real issue is the ability to get any big, ambitious changes through. We've seen from past attempts that anything around property taxes can quickly become unpopular – so whatever his preferences, I can't imagine we'll see anything radical unless he's returned to power with a big majority after the next election."
Jonathan Hopper of Garrington Property Finders raised concerns about valuation accuracy: "At present, we don't have the capability to value every single property, so this has the potential to upset people. While automated valuation models can be relied on for uniform flats or urban houses that are identical, it does not take into account those that have converted lofts or done extensions. In more rural markets or with bigger properties, the accuracy of valuations can be poor."
Political Context
Burnham's support for the tax comes after his by-election win in Makerfield, positioning him as a potential future Labour Prime Minister. The proposal aims to reform council tax, which critics argue is outdated and regressive. However, implementing such a change would require significant political capital and a strong parliamentary majority.
