Greater Manchester Mayor Andy Burnham has unveiled sweeping proposals for regional development and property tax reforms, including replacing council tax and stamp duty with a 1% annual land value levy.
The plan comes as he prepares for a potential transition to UK prime minister within weeks.
According to an analysis by The Telegraph, the new system would triple average housing bills in the South to £1,650 annually, while reducing them to £600 in the North.
Critics warn the tax shift could disproportionately impact certain homeowners.
Political and Industry Reactions
Shadow housing secretary Sir James Cleverly criticized the proposal, calling it a "garden tax" that would punish families who have invested in their homes.
"It is a tax on aspiration," he said, adding that it would hit families with gardens hardest and create pressure to carve up land for development.
Industry experts noted the housing market is already grappling with regional imbalances. Jonathan Hopper, chief executive of Garrington Property Finders, said the policy could widen the north-south divide.
"The south has been lagging behind the north for well over a year now, and this potentially puts more fuel into northern markets," he said.
Hopper also highlighted affordability pressures in southern regions, where high living costs have made housing unsustainable.
"The south has burnt bright for many years but arguably burnt itself out on the affordability side," he said.
The land value tax would shift liabilities from tenants to property owners, potentially straining rental supply.
Hopper warned it could trigger another wave of landlords leaving the market, reducing choice for tenants and driving up rents.
Propertymark Chief Executive Nathan Emerson noted that Burnham has consistently supported government intervention to address housing shortages and build more homes.
Business leaders in the East of England expressed caution but emphasized strong cross-regional partnerships.
Andy Williams, chairman of the Oxford-Cambridge Supercluster Board, said there could be short-term nervousness but that many investments were already secure.
Labour Ipswich MP Jack Abbott urged local authorities to proactively secure infrastructure commitments rather than waiting for top-down assistance.
"We can't wait for a prime minister to cast favour on us," he said, calling for a unified regional lobbying effort to demonstrate value to the government.
