Implications for our coverage – London weighting increases taxation risk

Research evidence excerpt

Implications for our coverage – London weighting increases taxation risk

Global Research

22 June 2026ab

UK Real Estate Equities

Europe including UKProperty Tax Reform on the Agenda

Real Estate

Zachary Gauge

Successor to Kier Starmer to be appointed by September - at the latest Analyst

Following Keir Starmer's resignation as Labour leader and, by convention, Prime zachary.gauge@ubs.com

Minister, the party has begun a leadership contest that will conclude before Parliament +44-20-7901 5534

returns in September. At present, Andy Burnham is the only candidate to have formally Charles Boissier, CFA

put himself forward in the contest. While Burnham has yet to articulate a detailed Analyst

national policy platform, his record potentially suggests a greater emphasis on regional charles.boissier@ubs.com

powers, public service provision and cost-of-living interventions. The key macro question +44-20-7568 4415

is whether this translates into a meaningful shift in the government's fiscal stance. On Nadir Rahman

the fiscal rules, Burnham's more recent remarks that he "supports the rules" suggests Analyst

some softening in his stance from comments made in 2025 that the Labour party should nadir.rahman@ubs.com

not be "in hock" to bond markets. Bond markets have remained relatively calm through +44-20-7567 1750

the day's developments. Following Wes Streeting's decision not to enter the leadership

contest and instead back Burnham, 10-year gilt yields compressed by c.5bps, suggesting

investors may have taken some comfort from the reduced likelihood of a protracted

leadership battle and an extended period of policy uncertainty.

Property taxation potentially in focus

The policy area with the greatest potential relevance for real estate is any potential