The Intermediary – August 2026 - Flipbook - Page 81
R A P I D R E AC T I O N
Andy Burnham
If the Government can combine sustained
back to sweeping reforms and new taxes being
housebuilding with meaningful reform of
mooted through the press. This has a chilling
the transaction process and wider economic
effect not just on the housing market, but the
stability, it has an opportunity to create a
wider economy.
housing market that is not only larger, but
Burnham would have been far wiser to signal
significantly more fluid, resilient and better able
continuity and safety. Our revolving door of
to meet the changing needs of buyers and sellers
leaders keeps shaking everything up in a bid
across the country.
Jemma Hotta
partner in the property team
to solve our problems, when what the country
desperately needs is a steady hand on the
tiller to stay the course. Stability and certainty
would provide the foundation for confidence,
investment and economic growth. Mr Burnham
at Oury Clark
continuing with promises of radical change to
Council Tax is long overdue for reform. Basing
as every other time before.
cure all our woes is likely to have the same effect
local property taxation on 1991 valuations has
The abolition of Stamp Duty would be a
created clear distortions, particularly between
brilliant thing. The tax prevents people from
London, the South East and other parts of the
moving house, stops the property market
country, and few would argue that the current
functioning properly and leads to family
system accurately reflects modern values.
homes sitting empty instead of being freed up
There is also a strong case for replacing
Stamp Duty Land Tax (SDLT), which acts as a tax
for aspirational parents to have room for their
own children. However, all this talk about it
on mobility, discouraging people from moving
being potentially abolished is wreaking havoc
for work, downsizing later in life or upsizing as
on the property market. All this noise is not
their family grows.
The real debate is whether a proportional
property tax is the right replacement. Linking
boosting the economy and property market, it’s
destroying it.
Anyone who’s paid Stamp Duty on a property
annual tax bills directly to property values risks
prior to any land value tax should receive an
penalising homeowners whose properties have
exemption for an amount of time equivalent to
appreciated significantly but whose incomes
what they’ve already paid.
have not. This is a particular concern for many
The Government has a duty to instil
long-term homeowners in London and the
confidence and maintain stability that it has
South East who may be asset rich but cash poor.
completely forgotten. Imposing an annual land
Any transition would also need to be carefully
value tax could lead to catastrophe if it is not
managed. Homeowners who have recently paid
implemented correctly. Above all, there needs
substantial SDLT may reasonably question the
to be an appreciation that the London market
fairness of immediately replacing it with a high
is different from the rest of the country. If care
annual property charge without any transitional
isn’t taken, this could see property values in the
relief or credit.
capital and South East crash, mortgage-holders
Property taxation does need reform, but the
challenge is not whether to change the system –
it is how to do so without simply replacing one
set of unfair outcomes with another.
Simon Gerrard
chairman of Martyn Gerrard
Estate Agents
trapped in negative equity and families unfairly
hit with eye-watering bills.
There are also huge questions around
the logistics. It will take three to five years
to implement because every property across
the country will need to be valued. This
will be a hugely expensive and laborious
undertaking, which will outweigh any revenue
generated for the first few years. The knock-on
effects for the rental market also need to be
If Burnham’s assumption of office is meant to
usher in a new era, it’s begun with the same
old mistakes made by the short-lived leaders
seriously considered.
Other potential tax rises on Capital Gains Tax
or on wealth will backfire as previous attempts
of recent years. That is, with promises of big
have all done. All it will do is deter investment
disruptive change casting a cloud of uncertainty
and growth. If CGT becomes too high then it will
across the market.
We were supposed to enjoy a period of relative
undo much of the benefit of removing Stamp
Duty. Those risking large bills will simply avoid
political stability after the tumult caused around
selling and wait for the next Government to
the anticipated Budgets of last year. Now we’re
lower the tax again.
August 2026 | The Intermediary
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