Landlord tax changes are back under scrutiny following Keir Starmer's resignation as Prime Minister on 22 June, with tax advisers reporting a marked increase in landlords, developers and business owners seeking advice on their financial position.
Andy Burnham, the former mayor of Greater Manchester, has emerged as the clear frontrunner to succeed Starmer after winning a by-election back into parliament in Makerfield. Labour's leadership nominations open in just two days, on 9 July, and close on 16 July, meaning Burnham could become prime minister as soon as 17 July if no rival candidate secures sufficient support.
The prospect of a Burnham premiership has drawn particular attention because of his record on landlord regulation and property taxation. As mayor of Greater Manchester, he oversaw a 43% increase in fines issued to rogue landlords.
He has also spoken previously about reforming how property is taxed, describing council tax as "highly regressive" during his Makerfield campaign and criticising its valuations, which still date back to 1991.
- Burnham supports a proposal from campaign group Fairer Share that would replace stamp duty and council tax with an annual levy equivalent to 0.48% of a property's value
- He has floated equalising Capital Gains Tax with income tax rates
- He has previously discussed introducing a national land value tax
Tom Bill, head of UK residential research at Knight Frank, suggested a future Labour leadership contest could revive debate around shifting the tax burden from property transactions to property ownership. He noted that annual revaluations under such a system would effectively turn ongoing house price growth into a recurring tax liability rather than a one-off cost paid at the point of sale, with the impact likely to be felt most acutely in London and the south east.
None of this amounts to confirmed policy. Burnham has not published a tax manifesto, has not been confirmed as prime minister and has not personally endorsed any specific rate for Capital Gains Tax. However, the gap between rumour and reality has not stopped landlords acting.
Tax advisers say they've seen a marked rise in landlords, developers and business owners asking whether they should crystallise gains ahead of a budget that has not yet been scheduled, let alone announced.
For context, Capital Gains Tax on residential property currently sits at 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers, following changes introduced in the October 2024 Budget. The annual tax-free allowance has also shrunk sharply, falling to £3,000 for the 2026/27 tax year, down from £12,300 as recently as 2022/23.
Advisers are urging caution rather than panic. Landlords already selling for other reasons are being encouraged to seek professional advice on timing rather than assume current rates will still apply by completion, given the existing 60-day reporting and payment window for UK residential property disposals.
The consistent message across the advice being given is that newspaper speculation about unconfirmed policy shouldn't drive irreversible decisions, such as selling a property that would otherwise have been retained.
This latest bout of uncertainty comes on top of pressures already reshaping the private rented sector since the Renters' Rights Act came into force on 1 May, including tighter possession rules, rising compliance costs and the ongoing timeline for energy efficiency requirements.
For landlords weighing an exit, the prospect of a change in Capital Gains Tax adds a further incentive to act sooner rather than later, purely to avoid the risk of selling into a higher rate later on.
Whether Burnham's tax instincts translate into government policy remains to be seen, and any concrete proposals would likely need to pass through a budget process that has not yet been scheduled.
For now, the direction of travel is being shaped as much by speculation and advisory caution as by any confirmed changes to the rules landlords currently operate under.
