July 2026 Roundup: A New Prime Minister and the Potential Implications for Housing

July brought a significant change at Westminster, with Andy Burnham becoming Prime Minister on 20 July 2026 following the resignation of Keir Starmer.

While the political circumstances surrounding the change fall outside our area of expertise, a new Prime Minister inevitably raises questions about future housing, taxation and property policy. At this stage, however, it is important to distinguish between confirmed announcements, previous policy positions and wider speculation.

Property taxation

Before becoming Prime Minister, Andy Burnham had supported reform of the property taxation system, including changes to Council Tax and Stamp Duty Land Tax. However, he has since ruled out replacing Council Tax and Stamp Duty with a single annual property tax at this stage. It has also been confirmed that Stamp Duty reform will not form part of this year’s Budget. The immediate position for buyers and homeowners therefore remains unchanged. Purchasers should continue to calculate their costs using the existing Stamp Duty rules, while Council Tax remains based upon the current system.

There has been speculation about possible future changes affecting higher-value properties, including the threshold for the proposed High Value Council Tax Surcharge, sometimes referred to as a “mansion tax”. No confirmed change has yet been announced.

Possible reforms to Capital Gains Tax and Inheritance Tax have also been discussed. These remain potential policy areas rather than confirmed government measures, and the detail of any changes would need to be considered once formally announced.

Housebuilding and social housing

The new Prime Minister has stated an intention to deliver the largest council housebuilding programme since the Second World War. One suggestion is that the existing £39 billion affordable housing programme could be directed more heavily towards homes for social rent. Further information will be required to understand how this might affect other affordable housing routes, including shared ownership. There has also been support for higher-density residential development within towns. If implemented through planning policy, this could encourage further housing around existing centres, transport links and local services while seeking to reduce pressure on undeveloped land. As with any major housebuilding programme, the eventual effect will depend upon planning delivery, infrastructure, funding and the availability of suitable land.

The private rented sector

Tougher standards within the private rented sector have also been identified as a priority, although detailed proposals have not yet been published. Landlords should continue to follow existing requirements and monitor future announcements relating to property condition, energy efficiency and tenant protections. Any new measures will need to be assessed once the relevant legislation and implementation dates are available.

Energy costs and homelessness

The Government has announced that VAT will be removed from domestic electricity bills for six months from 1 October 2026. The temporary measure applies to electricity rather than gas. The Prime Minister has also pledged to end rough sleeping, supported by a proposed additional £340 million of funding over five years. Further details will be needed regarding how this funding will be distributed and how the programme will operate nationally.

What does this mean for the property market?

For the time being, there has been no immediate change to the principal taxes affecting most property transactions. Buyers, sellers and homeowners should therefore continue to make decisions based on the rules currently in force. Mortgage rates are not set directly by the Government. However, wider economic policy, public borrowing and market confidence can influence financial markets and, in turn, the cost of mortgage funding. The clearest housing proposals currently relate to council housebuilding, homelessness and standards within the rented sector. Many of the reported tax changes remain unconfirmed.

At Navah Consulting, we will continue to monitor confirmed housing and property announcements and consider their practical implications for homeowners, purchasers and property professionals.

Please note - This article is based on information available at the date of publication and is intended for general information only. It does not constitute financial, tax or legal advice.

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