Sir Keir Starmer has announced his resignation as prime minister after facing calls from within Labour to resign.
Andy Burnham, who won the Makerfield by-election last week, has confirmed that he will run for the top job, with some reports suggesting that he could run unopposed. Starmer announced that he will remain in the position until the party finds its new leader, with the leadership contest set to start on 9 July. Starmer’s resignation will mean that the country will now have its seventh prime minister since 2016, and likely another shake up of the key positions in cabinet.
Here’s how the news has been received across the housebuilding industry:
Vanessa Hale, chief executive of Real Estate:UK, said: “The resignation of Sir Keir Starmer as prime minister and the prospect of our seventh PM in the last ten years is doing little to position the UK internationally as a stable location for investment, and subsequently to be able to continue to attract the global capital required to build the homes, infrastructure, and economic growth that the country desperately needs.”
“Given that viability challenges have effectively stalled building activity across the country, it is vital that the governing party moves quickly to identify a successor to Sir Keir and restore a more stable, predictable policy environment, so that we can work together across the public and private sectors to support delivery of new homes, grow the economy and revitalise town centres.”
Andy Hill, CEO and founder of The Hill Group, commented: “The resignation of the prime minister marks a significant moment, but the priority for whoever takes on the role must be clear, delivering growth and tackling the challenges facing communities across the UK.”
“For housing, this means creating the conditions for a stronger market by ensuring more homes are delivered and stimulating demand so that more people, particularly first time buyers, can access and purchase new homes.”
“The government and the housebuilding industry must work together to tackle the barriers holding back the market, including affordability and access to finance, while supporting confidence for buyers.”
“At Hill, we remain committed to working collaboratively on practical solutions that improve access to homeownership and help deliver the homes that people need.”
Paul Rickard, chief executive of Pocket Living, said: “Over the coming weeks, much will be written about the legacy of Sir Keir Starmer as prime minister, but for the housing and development sector, his government was one which finally grasped the need for a radical reform of the planning system and the political imperative of building new homes. While challenges around viability and broader economic headwinds have made the latter increasingly challenging, we can start to see the positive impacts of planning reform starting to emerge. In seeking to build upon this, we would urge that Sir Keir’s successor continues to focus on addressing the barriers to get Britain building, as well as maintaining a positive investment climate for all types of housing.”
Simon Cox, managing director of Walter Cooper, commented: “Keir Starmer’s resignation will inevitably create further uncertainty at a time when the property sector needs more stability than ever. We’ve already seen significant political churn in recent years, making it difficult for any prime minister to deliver the long-term planning and policy consistency required to unlock development.”
“Whoever succeeds Starmer must understand the critical role that housing plays in driving economic growth. It’s important to support prosperity across all regions of the UK – a strong housing sector creates confidence, investment and economic activity that benefits the whole country.”
“For the land market, certainty is critical. Landowners, developers and investors need confidence that planning reforms, housing targets and infrastructure commitments will remain on course. Without that, land transactions slow and much-needed development is delayed.”
“The industry has no shortage of ideas on how to boost housing delivery and stimulate growth, but what we need, above all, is certainty. The next Prime Minister must provide clear leadership, stand firm against internal rebellions and create the stable policy environment that businesses and investors need if we’re going to tackle the UK’s housing challenges and unlock much-needed development.”
Dean Leslie, director at GLPG, said: “The resignation of Keir Starmer comes at a critical time for the UK housing market. You cannot tax, regulate and burden your way to more housing, yet that is exactly how many residential developers feel today.”
“It will be interesting to see how financial markets react over the coming days. Any political uncertainty has the potential to influence gilt yields and swap rates, which were already elevated and volatile due to ongoing tensions in the Middle East. Given the importance of borrowing costs to both developers and homebuyers, market reaction will be closely watched across the sector.
“Developers are doing everything they can to remain positive, buy sites, raise finance and deliver new homes, but the UK is becoming an increasingly difficult place to develop residential property. At times, it feels as though government policy is focused on adding costs and complexity rather than helping the sector deliver the homes the country desperately needs.
“High interest rates, rising build costs, Section 106 obligations, Community Infrastructure Levy charges, Biodiversity Net Gain requirements, the forthcoming Building Safety Levy and an increasingly complex regulatory environment are all putting enormous pressure on viability. For taller schemes above 18 metres, the Building Safety Regulator gateway process has introduced further cost, delay and uncertainty. While each measure may be justifiable in isolation, the cumulative effect is significant, and many developers are now being forced to sit on their hands, not because they lack ambition or confidence, but because too many schemes simply do not make financial sense in the current environment.
“The biggest issue, however, remains demand. We need end-user buyers back in the market. Developers will build homes if people are buying them, but right now, there is very little in government policy aimed at stimulating demand. A meaningful reduction in stamp duty or the introduction of a new Help to Buy style scheme would make a world of difference, giving buyers the confidence to move, increasing transaction volumes and unlocking developments that are currently stalled.
“The affordable housing sector is beginning to see increased activity following the new Affordable Homes Programme, but the traditional build-to-sell market remains under significant strain. If the next prime minister is serious about increasing housing delivery, they must focus not only on planning reform but also on creating the conditions that encourage people to buy homes.
“Developers are ready to invest, ready to take risks and ready to build the homes this country desperately needs. The private sector is willing to do its part. The real question is whether the next prime minister is prepared to do theirs.”
Scott Clay, a director at specialist mortgage lender, Together, commented: “With Starmer’s resignation, the UK holds its breath over the leadership race – a lot of eyes are drawn north given Andy Burnham’s strong track record as Mayor of Greater Manchester.”
“That said, any successor would still face the same economic challenges. Delivering wide-scale housing, regeneration and investment will be vital to build a stronger national economy. It’ll also be particularly interesting to see how gilt markets respond to any political turbulence, as movements in gilt yields directly influence mortgage pricing. At a time when borrowers are hoping for greater stability and lower rates, markets will look closely for signs of fiscal discipline and policy continuity.”
