Land value tax: what Burnham's property tax plans mean for land owners and buyers
Council tax and stamp duty could be replaced by an annual property tax, or a land value tax on the land itself. See what the proposals would mean with our calculator, updated as the story develops.
Status: proposal under discussion, not law. There is no legislation, no confirmed rate and no start date. The figures quoted in the press come from the Fairer Share campaign, which the Prime Minister has backed, not from HMRC. Last updated: 26 July 2026. We update this page as the story develops.
Andy Burnham's government is openly exploring the biggest shake-up of property tax in a generation: replacing council tax and stamp duty with an annual charge based on what a property is worth today. Further down the line, a land value tax is also on the table. That would be charged on the land itself rather than the buildings standing on it.
Most coverage looks at what this means for homeowners. This page looks at the question our readers actually have: what would it mean for people who own land, or are about to buy some?
Frequently asked questions
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Is the land value tax now law in England?
Would I pay a land value tax on a field, paddock or woodland?
What would a land value tax do to land prices?
Does the 0.48% proposal apply to land purchases?
What is actually on the table
Two distinct ideas are being discussed, and coverage often blurs them together.
1. A proportional property tax. The model the Prime Minister has previously endorsed comes from the Fairer Share campaign: a single annual charge of 0.48% of a home's assessed value, rising to 0.96% for second homes, empty homes and overseas buyers. It would replace both council tax and stamp duty. On a £300,000 home that works out at £1,440 a year. Cheaper areas, where council tax is high relative to house values, would generally pay less. Expensive areas would pay more.
2. A land value tax (LVT). Burnham has described himself as "long persuaded of the argument for a land value tax": an annual levy on the value of the land beneath a property, ignoring the buildings. This is the older and more radical idea, long favoured by economists. Land cannot be moved or hidden, and taxing it does not discourage building. If anything, it encourages land to be put to use.
Neither is government policy yet. What exists today is strong signalling, a campaign model with worked numbers, and active exploration inside government.
What would the 0.48% proposal mean for a home?
Based on the Fairer Share model the Prime Minister has backed. A proposal, not law.
Proposed annual charge (0.48%)
£1,440
£120 a month
Vs your council tax
—
enter your bill to compare
Stamp duty on this home today
£5,000
abolished under the proposal
Figures use the Fairer Share campaign's published model (0.48% of assessed value, 0.96% for second, empty and overseas-owned homes, replacing council tax and stamp duty). No rate, valuation method or start date has been set by government. Stamp duty shown at standard England main-home rates.
Why land owners should pay closer attention than homeowners
Council tax is charged on dwellings. If you own a bare field, a paddock, woodland or a building plot, you currently pay no annual property tax at all on it. That is exactly what a land value tax would change.
- A carrying cost on bare land for the first time. An LVT would attach an annual bill to land whether or not anything is built on it. Holding land idle would stop being free.
- Land banking becomes expensive. Sitting on a plot waiting for planning costs nothing today beyond the money tied up. An annual percentage of land value changes that arithmetic, which is partly the point of the policy.
- The scope question decides everything. Most countries that levy land taxes relieve or exempt working farmland. Whether agricultural land, amenity plots and paddocks would be in scope in England is completely undecided. It is the single biggest question for small landowners, nobody can answer it yet, and you should be suspicious of anyone who claims to.
What it would do to land prices
Economists broadly agree on the direction of travel, and it is worth understanding before you buy or sell.
- Annual land taxes tend to lower purchase prices. A buyer facing a £1,000-a-year land tax bill forever will pay less up front for the same plot, because the tax gets priced in. Existing owners at the moment of introduction bear that adjustment.
- Scrapping stamp duty works the other way on activity. Stamp duty is a tax on moving. Removing it makes buying and selling cheaper and tends to increase the number of transactions. For sellers of land and property, more liquidity is generally good news.
- Development land is the wild card. An LVT assessed on land's potential value, rather than its current use, would push owners of consented or developable land to build or sell rather than hold. Assessed on current use value, the effect is far milder. This design choice, not the headline rate, is what would move the market most.
What to do about it now
Honestly: nothing dramatic. Proposals like this have surfaced repeatedly for decades, and the distance between a campaign model and an Act of Parliament is long. But two things are genuinely sensible.
- Know what your land is actually worth. Every version of these proposals starts from an up-to-date valuation. Our free land valuation tool gives you an evidence-based range from real HM Land Registry sales, a sensible baseline whether or not any of this happens.
- If you're buying, buy on fundamentals. Access, planning constraints, flood risk and designations decide what land is worth under any tax system. A Plot Report checks all of it against official data before you commit. Policy risk is one more reason not to overpay for hope value.
Development log
- 26 July 2026. Page published, with the property tax calculator added. Verified status: the 0.48% and 0.96% figures are the Fairer Share campaign's model, which Burnham has publicly supported; he has separately voiced long-standing support for a land value tax. No legislation, rate or timetable exists. Sources: Withers, HomeOwners Alliance, The Negotiator, UK Property Accountants.
We will add dated entries here as the story develops. Use the box at the top of this page if you want an email when that happens.