Overview
Andy Burnham, the Greater Manchester mayor and frontrunner to replace Keir Starmer as prime minister, outlined an ambitious housing agenda on June 29 that could reshape the market for new homes. He pledged what he described as the biggest programme of council house building since the Second World War and proposed sweeping property‑tax reforms. The announcement led UK housebuilder stocks to rise as much as 4% on Monday.
Funding and Tax Reform Details
Burnham suggested funding the council‑housing drive by redirecting the existing £39 billion affordable‑housing programme entirely to social‑rent homes. On property taxation, he is reported to favour a proposal from the campaign group Fairer Share that would scrap both council tax and stamp duty and replace them with an annual levy equal to 0.48% of a home’s current market value. Under this model a £300,000 home would incur an annual charge of £1,440, with no upper limit on liability. Second homes, empty properties and homes owned by overseas buyers would face a rate of 0.96% of their current value.
High‑Value Council Tax Surcharge Changes
Burnham could also lower the threshold for the High Value Council Tax Surcharge (often called the mansion tax) from £2 million to £1.5 million. The Treasury estimates that this change could bring an additional 150,000 households into the surcharge pool. The surcharge is slated to be collected alongside council tax beginning April 2028.
Additional Housing Initiatives
He pledged to bring higher‑density residential development to towns to increase high‑street footfall while protecting green space.
Manchester Record as Mayor
During his tenure as Manchester mayor, Burnham oversaw the construction of 3,864 new homes in the fiscal year 2024‑25, representing a 28% increase over the previous year. As of 2025, approximately 12,000 homes were under construction in the city, with a further 7,500 homes holding planning permission.
Political Context
Burnham could become prime minister on July 20 if no other Member of Parliament enters the Labour leadership contest as a challenger. No formal manifesto has been published at this stage.