Andy Burnham is on track to become the next prime minister in a matter of days, but the housing crisis he inherits is the worst in more than a century. The median average price of a British home in 2025 was 7.6 times the median annual earnings of a full-time employee – a ratio not seen since the 19th century, when property ownership was largely the preserve of the gentry and aristocracy. For young people, the consequences are stark: the most common living arrangement for a young man in Britain is now with his own parents.
Burnham, the Makerfield MP and former Greater Manchester mayor, is currently the only candidate in the Labour leadership contest to replace Sir Keir Starmer. He has been backed by 322 out of 403 Labour MPs and is expected to get the keys to No 10 on 20 July. But questions remain over what his premiership will mean for finances – and whether he will dare to contemplate a wealth tax to fix the affordability crisis.
“Andy Burnham set to become PM as housing affordability hits 7.6 times earnings, sparking wealth tax debate.”
In the 20th century, the house price-to-earnings ratio was consistently around four times average earnings, except for a few short spikes. That made it possible to save a deposit with one income over a few years and buy with a mortgage – a social contract that has broken down. As the New Statesman put it: "If an Englishman's home is his castle, then, increasingly, modern men are peasants in someone else's keep."
The article that poses the question – "Will Andy Burnham dare to contemplate a wealth tax to fix it?" – captures the scale of the challenge. With house prices now 7.6 times earnings, returning to the historic norm of 4 times would require a dramatic intervention. Whether Burnham is willing to take that step remains unknown, but the pressure is mounting as he prepares to enter Downing Street.
