If you own a Buy-to-Let (BTL) or a second home and you have seen the headlines about possible future prime minister Andy Burnham scrapping stamp duty, you are probably wondering one thing. Would replacing it with an annual property tax save me money or cost me more?
That is the question the news coverage skips. This article answers it with real figures, explains who wins and who loses, and tells you what to do now. If you simply want today's stamp duty bill on a purchase, our SDLT calculator will answer that faster than this article. But if you hold property for the long term and want to understand your exposure to Andy Burnham’s possible stamp duty reform, read on.
Key Takeaways
- Andy Burnham has not scrapped stamp duty; he has released no official plan, policy or position
- Burnham does favour replacing the Stamp Duty Land Tax with an annual land value tax; instead of paying SDLT when you buy, homeowners would pay an annual land value tax, with the Fairer Share campaigning advocating for a rate of 0.48% a year, rising to 0.96% for second homes, empty homes and overseas-owned properties
- Stamp duty is paid once, an annual property tax is paid every year you own; this is why, for a buy-and-hold landlord, it can overtake a one-off SDLT bill within a handful of years
- Portfolio landlords, second-home owners and non-residents would be the most affected; these groups would face the proposed higher annual rate of 0.96%, making them the biggest losers if the reforms are introduced
- The right response to the present headlines is to model your exposure, not react; no purchase, sale or restructure should be driven by an unlegislated proposal
Will Andy Burnham Scrap Stamp Duty?
No, not immediately.
Andy Burnham is expected to become Prime Minister following the Labour Party’s leadership contest, with nominations closing on 16 July 2026, confirmation as Labour leader expected on 17 July 2026, and his appointment as Prime Minister anticipated on 20 July 2026. However, he has not announced any policy to abolish Stamp Duty Land Tax (SDLT).
What Burnham has consistently supported, dating back to 2010, is the broader idea of replacing one-off property transaction taxes with an annual property tax. In a 2010 Guardian article, he argued that introducing an annual land value tax could allow stamp duty to be abolished. He reiterated this position during his May 2026 leadership campaign, describing Council Tax as “highly regressive” and again backing a land value tax.
That said, supporting the principle of annual property taxation is not the same as introducing legislation. Any proposal would still need Treasury backing, parliamentary approval and public support. As a result, most commentators believe that, even if Burnham pursues reform, any replacement of stamp duty is more likely to be considered after the next general election, currently expected in 2029, rather than in the immediate future.
What is a Land Value Tax & How Would It Replace Stamp Duty?
A land value tax (LVT) is an annual tax on property ownership rather than a one-off tax paid when you buy a property. Traditionally, an LVT is charged on the value of the land, excluding any buildings on it.
However, the model most closely associated with Andy Burnham is the proportional property tax model proposed by the Fairer Share campaign. Under that proposal, homeowners would pay 0.48% of a property's value each year, replacing both SDLT and Council Tax. The rate would increase to 0.96% for second homes, empty homes and overseas-owned properties.
If enacted, this proposal would change when property owners and investors pay the tax. Stamp duty is a transaction tax. You pay it once when purchasing a property and, in most cases, never again. A proportional property tax is an annual tax. You will continue to pay it for as long as you own the property. If the property's value increases, your annual tax bill could increase as well.
In other words, instead of paying a large upfront tax when buying, property owners would make ongoing annual payments for the duration of their ownership.
Would An Annual Land Value Tax Cost More Than Stamp Duty?
For many buy-and-hold landlords, the answer is yes.
Stamp duty is a one-off cost paid when you buy a property. By contrast, the Fairer Share proportional property tax (PPT) would be an annual charge that continues for as long as you own the property. Over time, those yearly payments can exceed the upfront SDLT bill.
The comparison below illustrates how the two systems differ. It compares today's SDLT with the proposed 0.48% annual PPT. These figures are illustrative and compare SDLT only. In practice, the PPT proposal would also replace Council Tax, reducing the overall difference for many owner-occupiers. Landlords, however, would typically pay the proposed 0.96% rate, making the long-term cost significantly higher.
Property Value | SDLT Now (Home Mover, One-Off) | SDLT Now (BTL/Second Home, +5%) | Annual PPT at 0.48% | Annual PPT at 0.96% (BTL/Overseas) | Years for 0.48% PPT to Equal Home-Mover SDLT |
|---|---|---|---|---|---|
£300,000 | £5,000 | £20,000 | £1,440 | £2,880 | ~3.5 years |
£500,000 | £15,000 | £40,000 | £2,400 | £4,800 | ~6.3 years |
£750,000 | £27,500 | £65,000 | £3,600 | £7,200 | ~7.6 years |
£1,000,000 | £43,750 | £93,750 | £4,800 | £9,600 | ~9.1 years |
Worked Example: A Manchester Landlord Holding for the Long Term
David lives in Greater Manchester and already owns three Buy-to-Lets. In 2026, he buys a fourth – a £280,000 terraced house near a commuter line – intending to hold it until he retires in 15 years. Here is how the two systems treat him.
- Under Today’s SDLT System - As this is an additional dwelling, David pays the 5% surcharge on top of standard rates – £6,250 on the first £125,000, £8,750 on the next £125,000, and £3,000 on the final £30,000. This is a total of £18,000, paid once. Over his 15-year hold, that is the entire purchase tax he ever pays on the property.
- Under A 0.96% Proportional Property Tax - As an investment property, the £280,000 house attracts the doubled rate – £2,688 in year one, and more each year as the property appreciates. Even holding the value flat, that is roughly £40,000 across fifteen years.
For David, Burnham’s tax proposal would turn a fixed, known £18,000 into an open-ended charge that scales with time and house price. He would recover the equivalent of his old stamp duty bill in under seven years, and pay it several times over across a normal hold. For a landlord who buys to hold, the annual model is materially worse, and it lands whether or not he ever buys or sells again.
Who Wins & Who Loses Under the Property Tax Proposal?
Under the proposal, owner-occupiers in lower-value areas and people who move home frequently are expected to benefit, while landlords, second-home owners, overseas owners and owners of high-value properties are likely to pay more.
Broadly speaking, owner-occupiers in lower-value parts of the North and Midlands could benefit because they would avoid paying a large upfront stamp duty bill every time they move. Those who buy and sell homes more frequently would also be less affected by transaction taxes.
By contrast, owner-occupiers in higher-value areas, particularly in London and the South East, are likely to pay more over time. This could also affect asset-rich but cash-poor retirees, who own valuable homes but have relatively modest incomes.
For property investors, the outlook is generally less favourable. Portfolio landlords, second-home owners and overseas owners would typically pay the proposed 0.96% annual rate, creating an ongoing cost that reduces long-term rental yields. Overseas owners could also face further charges in the future, as the separate “mansion tax” on residential properties worth more than £2 million, expected from April 2028, is also considering additional charges for non-resident owners.
What Should You Do About Stamp Duty Reform Now?
Nothing. Do not accelerate a purchase, sell a property or restructure a portfolio on the strength of a proposal that is nowhere close to becoming official policy. Reacting to media headlines costs more than it saves.
What is worth doing is understanding your exposure. If your portfolio's economics depend on low holding costs, model what a recurring 0.96% charge would do to your yield, and whether your ownership structure (personal name, partnership or limited company) is still the right one. Stamp duty is charged under the Finance Act 2003 (Part 4), with the additional-dwellings surcharge in Schedule 4ZA. The interaction between SDLT, Income Tax and any future holding tax is precisely where structure decisions are won or lost.
Conclusion
If you are holding property for the long term, scrapping SDLT in favour of an annual land value tax could become expensive. After all, it replaces a tax you pay once when you buy with one you pay every year you own the property. As David's case shows, that can turn a known £18,000 bill into a £40,000-plus liability over a hold period, and it hits leveraged and non-resident landlords hardest.
This is not a decision a calculator alone can resolve. The right answer depends on your yield, your holding period and your ownership structure, and getting it wrong in either direction is expensive. The sensible move is not to react, but to know exactly where you stand.
Stress-Test Your Portfolio Against Property Tax Reform
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FAQs
Not immediately. He has confirmed no plans and made no indication that he’ll scrap Stamp Duty Land Tax (SDLT). While he has supported replacing stamp duty with an annual property tax, he has not announced any formal policy. It looks like stamp duty rules will remain in force for the near future.
Andy Burnham is proposing that property should be taxed annually rather than at the point of purchase. He has consistently supported the principle of a land value tax and has endorsed the Fairer Share campaign's proportional property tax, which would replace both SDLT and Council Tax with an annual charge based on a property's value.
Yes. For most long-term landlords, an annual property tax would likely cost more than today's one-off stamp duty. Instead of paying SDLT once when buying a property, landlords would pay an annual charge for as long as they own it.
Potentially, yes. Although there are no confirmed changes to stamp duty for non-resident landlords, proposals to replace SDLT with an annual property tax would generally subject overseas owners to a higher annual rate. Separate government proposals have also explored additional taxes on high-value residential properties owned by non-residents.
No. There are currently no confirmed plans to abolish stamp duty or introduce an annual property tax, so delaying a purchase based purely on speculation is not wise. If you're concerned about how future tax reforms could affect your purchase, seek professional advice based on your individual circumstances rather than waiting for potential policy changes.
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