Labour Party pressure group Compass has called on Prime Minister Andy Burnham to introduce a 100 per cent tax on the purchase price of second homes, as part of a wider set of policy recommendations aimed at tackling Britain's housing crisis.
The proposal is included in a report outlining 100 policies for the new prime minister's first 100 days in office. Compass, headed by Neil Lawson, who also co-founded the Burnham-backed faction Mainstream Labour in August 2025, warns that there is "record second-home ownership while working people struggle for housing".
Emergency action on climate and housing
Alongside the second home tax, Compass has called for "emergency decarbonisation action" in response to the escalating impacts of the climate crisis. The group warns that the scale of the crisis means "emergency action is needed to reach Net Zero by 2040".
On housing, the report argues that the current system of property taxation is "Britain's most unfair and economically damaging taxes". It points out that council tax is still based on 1991 property values, while stamp duty "penalises people for moving, downsizing, upsizing or relocating for work".
Review of council tax and stamp duty
Compass suggests that Mr Burnham should launch a "full independent review" of both council tax and stamp duty within his first 100 days. The aim would be to replace both with a fairer property tax based on current values, protecting those who cannot pay, cutting bills for most households and unlocking a more mobile housing market.
The BBC has previously speculated that replacing stamp duty and council tax with an alternative property tax could be on the table. Higher rates on capital gains tax, which is paid on the profit when selling assets such as property outside a primary home as well as some shares, could also be introduced to bring them in line with income tax rates.
Mixed reactions to tax proposals
Opinion is divided on whether these are sensible building blocks for the economy which allow living standards to improve, or a "dysfunctional" economic straitjacket. Rachel Vahey, head of public policy at investment platform AJ Bell, said: "The [resulting] rummage down the back of the sofa for loose change has hit personal finances hard, changed the tax landscape, and makes it more challenging for people to save for their future."
The report comes as the government faces increasing pressure to address housing affordability and climate change, with Compass urging swift action in the first 100 days of Mr Burnham's premiership.
