This article looks at the effects the new Prime Minister, Andy Burnham, is likely to have on the property market across the UK – given that he has some widely publicised views which may be different to his predecessor Sir Keir Starmer.
It touches on the areas of tax policy, social housing and the private rental sector.
The blog will take around three minutes to read.
This month a new Prime Minister took office – promising ‘more breathing room’ for Britain, and more ‘stable and responsible politics.’ But what will his views and policies mean for the housing market? Maunder Taylor, who take a keen interest in all property news and issues, have been taking a closer look.
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Property Tax
Andy Burnham said he wanted a reform of council tax during his by-election campaign, when he successfully stood as Labour’s candidate in Makerfield, Greater Manchester. Mr Burnham called the current system “highly regressive” and its 1991-based valuations “not justifiable”.
Any future reform could include new valuations, new council tax bands, and a completely different property tax model. According to one national newspaper, Andy Burnham is said to be a fan of a proposal put forward by the campaign group Fairer Share, which wants to replace stamp duty and council tax with an annual property tax equivalent to 0.48% of a home’s value.
Another national newspaper has reported Mr Burnham could potentially lower the threshold at which people start to pay the incoming Mansion Tax (scheduled to begin in 2028) from £2million to £1.5m. This could have implications for London and the South-East. (For a full breakdown of the mansion tax as it currently stands, check out our previous blog post here.)
Social Housing
The Labour government had promised to build 1.5million new homes in England over the course of this Parliament – but there are signs that it is already falling behind on this target.
Mr Burnham, the former Mayor of Greater Manchester, has been credited by his supporters as revitalising the city’s home-building programme. He has said in a speech in June that housing should be at the centre of Government policy, and that “everything starts with a good home”.
He also wants to see “the biggest programme of council house building since the Second World War”. He suggested this could be funded by diverting the existing £39 billion affordable housing programme entirely to social rent homes.
If he wants local authorities to directly build all the new homes he has promised, they would be required to construct tens of thousands a year, when many have not built any for decades. It would also probably require a considerable increase in council budgets.
The Private Rented Sector
The Government has already introduced the Renters’ Rights Act, which has seen an end to ‘no-fault’ evictions, and introduced greater protections for tenants against rent increases, among other measures.
Mr Burnham was fully supportive of the Act – and he may wish to strengthen it even further. While Mayor, he introduced a Good Landlord Charter to drive up standards in rented accommodation and employed 10 specially recruited enforcement staff to tackle poor quality private rental housing and to take action against landlords who do not maintain their properties appropriately.
What Will the Effects Be?
Any changes in Government policy tend to result in a temporary slowdown in the housing market. Transactions may be paused until full details are finalised. Much will depend on the new Chancellor of the Exchequer, John Healey and the Housing Secretary, Angela Raynor.
Contacting Maunder Taylor
You can call Maunder Taylor’s main office on 020 8446 0011, or email enquiries@maundertaylor.co.uk. If you have any residential block management enquiries, then call 01707 665 666
FAQs
Q: How long would it take Mr Burnham to bring in any new tax changes?
A: Changes to tax rates or minor adjustments to existing Stamp Duty thresholds can be announced in an upcoming Fiscal Statement or Budget. While the announcement happens within months, implementation usually aligns with the start of the next tax year (April 2027).
Replacing Stamp Duty with an alternative transaction mechanism requires a Finance Bill, which usually takes between six months to a year to pass into law after consultation.
Q: What about any other measures?
A: Standardising private rented sector rules or expanding local authority licensing powers (similar to the Good Landlord Charter model) requires primary legislation. Drafting the bill, completing public/industry consultations, and passing through the Commons and Lords typically takes between nine and 14 months.