Andy Burnham looks to be trying to oust Starmer – what his ambitions could mean for the property market
The Mayor of Greater Manchester, Andy Burnham, has again found himself at the centre of speculation over Labour’s leadership. In interviews yesterday he has declined to rule out challenging Sir Keir Starmer, prompting Westminster chatter about whether the “King of the North” is preparing a return to Parliament.
For mortgage professionals, the significance lies less in the drama of internal Labour politics than in the fiscal direction Burnham might pursue if elevated to leader – and potentially prime minister. He has long been a critic of the current council tax system, describing it as outdated and regressive. Speaking to the Daily Telegraph, he said: “If you look at London, I think there are people in homes that are even in double-figure millions paying less council tax than people [in Manchester]. It’s just not justifiable … where something is like that, it needs fixing.”
This echoes earlier positions in which Burnham backed a move to property-value-based taxation that would shift the burden from modest homes in northern cities to high-value property in the South East. In the New Statesman, he argued there had been a “huge underpayment of tax that should now be corrected” because valuations are still pegged to 1991 levels.
For lenders and brokers, such reforms could reshape affordability calculations in prime London postcodes while easing pressure on borrowers in lower-value markets. However, a revaluation exercise could trigger political upheaval and inject volatility into already fragile housing sentiment.
Burnham has also set out ambitions for a large-scale council housebuilding programme funded by £40 billion of government borrowing. If delivered, this would represent one of the largest state-led interventions in housing supply for decades. For the mortgage sector, the knock-on effects could be significant: downward pressure on rents, stronger competition for private developers, and potential recalibration of loan-to-value assumptions in the affordable segment.
He has also spoken in favour of land-value capture mechanisms to ensure local authorities share in the uplift from development – a move that could alter the economics of site acquisition and lending for housebuilders.
Burnham’s willingness to “get beyond this thing of being in hock to the bond markets” has raised eyebrows among investors. Comparisons with the fallout from the Truss mini-Budget are not far-fetched. For mortgage markets, any whiff of fiscal instability risks repricing in the gilt market and renewed volatility in swap rates, with obvious consequences for fixed-rate mortgage pricing.
Not all in Labour are welcoming Burnham’s interventions. Thangam Debbonaire told Sky News she wished he would “stop sticking his oar in”, adding that Sir Keir “is our prime minister”. Yet Burnham has made clear he still harbours leadership ambitions, telling The Guardian: “I stood twice to be leader of the Labour Party. And I think that tells you, doesn’t it?”.
Should Burnham seize the leadership, property taxation and housing policy would move closer to the heart of Labour’s economic platform. A mansion tax, reworked council tax, and large-scale public housebuilding could reshape the housing landscape in ways unseen since the post-war period. For mortgage professionals, the message is clear: monitor developments closely, as the political calculations in Westminster may soon translate into fundamental shifts in property values, borrower affordability, and regional lending patterns.
