UK housebuilder shares rallied by as much as 4% on Monday after Greater Manchester mayor Andy Burnham, currently the leading candidate to replace Keir Starmer as Labour leader, set out an expansive housing programme that market participants say could alter demand dynamics for new homes.
Burnham could assume the premiership on July 20 if no other member of parliament challenges his bid for the Labour leadership. He has not yet published a formal manifesto, but on June 29 he positioned housing at the centre of governmental priorities, saying: "Everything starts with a good home, and this country finally has to put that at the top of its priority list."
The policy package he described includes what he termed "the biggest programme of council house building since the Second World War" and a series of far-reaching changes to property taxation. Among the funding ideas he has floated is redirecting an existing £39 billion affordable housing programme so that it is devoted entirely to homes for social rent. The Homeowners Alliance warned that such a reallocation could materially affect shared ownership schemes.
On tax reform, Burnham is reported to favour a plan advanced by campaign group Fairer Share to abolish both council tax and stamp duty and replace them with an annual levy calibrated at 0.48% of a property's current value, according to reporting in the Times. Under that proposed model, a home valued at £300,000 would face an annual charge of £1,440. Properties that are second homes or left empty would be subject to a higher annual rate of 0.96%, a rate that would also apply to homes owned by overseas buyers.
He has also indicated support for lowering the threshold for the High Value Council Tax Surcharge, commonly referred to as the mansion tax, from £2 million to £1.5 million. That change is estimated to bring roughly 150,000 additional households within the surcharge's scope. The surcharge is scheduled to begin being collected alongside council tax from April 2028.
Beyond fiscal measures, Burnham said he would promote higher density residential development in town centres. He framed this as a dual objective: increasing footfall to high streets while maintaining protections for green spaces.
Burnham's record as Manchester mayor formed part of the narrative supporting his housing credentials. During 2024-25, the city delivered 3,864 new homes, a rise of 28% compared with the previous year. As of 2025, approximately 12,000 homes were under construction across Manchester, with an additional 7,500 units holding planning permission.
Contextual note: The proposals remain at the proposal stage. No formal manifesto has been released and the leadership outcome is contingent on whether Burnham faces any parliamentary challengers before July 20.