Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Burnham’s Property Tax Proposals Add to Market Uncertainty
Property sales and mortgage approvals declined in May 2026, with activity expected to remain subdued over the summer as buyers face economic pressures and political uncertainty. Audit, tax and business advisory firm Blick Rothenberg has stated that the housing market is unlikely to see significant improvement in June, July, or August, following weaker-than-expected mortgage lending and approval figures from the Bank of England.
Blick Rothenberg highlighted that uncertainty surrounding reported property tax proposals linked to a potential Andy Burnham government is adding to buyer caution. Reports indicate that allies of Burnham are examining reforms to capital gains tax and other property-related taxes, prompting questions over the future tax landscape. Some prospective buyers and investors are expected to delay decisions until there is greater clarity.
The latest Bank of England data showed both net mortgage borrowing and approvals for house purchases fell in May. Specifically, HMRC’s May 2026 property statistics recorded 98,450 sales, down from 101,030 in April 2026. The Bank of England reported that mortgage approvals in May 2026 decreased to 56,200, below the previous six months’ average of 63,300. Blick Rothenberg said this combination of softer lending activity, affordability pressures, and uncertainty over future government policy is likely to weigh on transaction levels in the coming months.
Heather Powell, a partner at Blick Rothenberg, noted that Andy Burnham’s proposals for the abolition of Stamp Duty Land Tax (SDLT) and Council Tax, and the introduction of an annual property tax, are creating uncertainty for homeowners and those considering buying their first home. Powell also referenced Burnham’s announcement of plans to increase investment in Council Homes, supported by the release of surplus government-owned land, but said delivering a significant number of new Council Homes within the current parliament would be challenging.
Simon Gerrard, chairman of Martyn Gerrard Estate Agents in north London, commented that London has experienced one of the most pronounced downturns in the housing market.
These developments are relevant for UK letting agents and inventory clerks, as ongoing uncertainty and subdued market activity may impact rental demand, property turnover, and the volume of new instructions in the coming months.
Source: Property Industry Eye