Published on 24 June 2026
“The current suggestion from campaign group Fairer Share is that property is taxed annually at 0.48 per cent of its market value for owner-occupiers and 0.96 per cent for second home or foreign owners. The initial phase would have a transition period for existing homeowners and would be capped at £1,200 per year above current council tax rates. There is no transition or cap for second home or foreign owned homes.”
Mr Curran calculates that the taxes would be the equivalent of £9,600 a year for a £2m Chelsea home or £24,000 a year for a £5m home. For second-home or foreign owners, they would work out at £19,200 and £48,000 respectively.
However, that should be offset against the fact that stamp duty would not be charged when a house was bought. Over 10 years, the tax on the more expensive property could amount to almost £90,000 more than under the current system. However, if you own the home for longer, then the benefit disappears and homeowners would pay more.
Mr Curran said that, as the tax is not part of the Labour manifesto, it is unlikely to be implemented before the next election, should Labour win, but it gives some flavour as to where Mr Burnham is likely to focus his policies.
“We believe that lower taxes are essential to stimulate the economy and the removal of Stamp duty and council tax to be replaced with a 0.48 per cent annual tax is probably not a bad idea. It will however create a real incentive not to sell for those who would benefit from the transition period which may well cause an initial spike in property prices as domestic vendors, if unable to meet the higher charge, may well end up sitting in their properties even if they are no longer appropriate.
“However, we would also expect to see a large number of foreign owners sell to avoid this tax, which may well counter the lack of sales from domestic vendors. If foreign vendors sell in droves, this will outweigh the domestic vendors, then prices will fall, and potentially quite significantly. A £10 million home owned by a foreign or second homeowner would attract £92,832 in annual taxes under this regime or a 2,930 per cent increase over today with no transition period.”
He said that if the scheme were to be introduced, it would lead to many legal challenges as the valuation of a home would become all-important.
“Tinkering with taxes is dangerous as no one invests in tax uncertainty. May we encourage Mr Burnham to consider not only the vast resources foreign buyers bring to the UK and the benefit that brings to the economy, but also the benefits of a strong private rental market, where landlords are not penalised by further tax increases. and the benefit that this brings to the economy but also the benefit of a strong private rental market where landlords are not penalised via further increased taxation.”
Read the Full Article in The National