In the wake of Keir Starmer’s departure, housing and development experts have called for housebuilding to remain at the centre of the next government’s agenda.
This morning (22nd June), Sir Keir Starmer announced his resignation outside 10 Downing Street, a move that follows Andy Burnham’s recent by-election victory. In a heartfelt address, he described leading the country as the ‘proudest moment’ of his life.
Reflecting on his time as Labour leader, Starmer said he inherited a party that was ‘politically, financially and morally bankrupt’ and one that he had been told ‘time and time again’ was ‘finished’.
Among his achievements, Starmer highlighted the introduction of the Renters’ Rights Act as one of the government’s biggest successes. His resignation also comes on the same day new powers under the legislation came into force, allowing councils to fine private landlords for failing to address serious hazards.
The announcement comes against a backdrop of mounting pressure over building safety, with campaigners this week urging Starmer to personally intervene in what they described as ‘glacial progress, blame game and buck-passing’ affecting residents living in unsafe homes.
Starmer revealed he had already spoken to the King and said that, should a leadership contest take place, a new Labour leader would be in position before parliament returns in September.
What’s next for housing?
While the industry waits with bated breath for a new prime minister, it has shared its views on what the next leader should prioritise, which can be read below.
Gavin Smart, chief executive of the Chartered Institute of Housing (CIH)
‘CIH recognises Sir Keir Starmer’s service and his leadership in keeping housing high on the national agenda.
‘His focus on increasing supply, strengthening renters’ rights and championing the role of social housing has been important at a time of significant challenge for the sector.
‘As a new prime minister is appointed, it is vital that this momentum continues and that housing remains a top priority.’
Andrew Lloyd, managing director at Search Acumen
‘The biggest risk from any leadership upheaval isn’t politics itself, it’s the uncertainty that follows. We’ve seen an immediate drop in the value of the pound against the dollar, with markets already reacting to possible changes in fiscal policy.
‘House builders, investors and lenders can adapt to almost any policy framework, but they can’t invest confidently if they don’t know whether that framework will still exist in six months’ time.
‘Andy Burnham has shown that smart intervention can unlock growth. Manchester’s record-breaking city centre regeneration proves what can be achieved when government works in partnership with the private sector.
‘If Andy can’t help fix Britain’s housing crisis, it’s difficult to see who can. But the 1.5 million homes pledge was always a unicorn, and as the clock ticks, it still looks more like a headline than a housing pipeline.
‘The good news is that we’re finally seeing signs of real delivery. The move towards AI-assisted planning and digital infrastructure points to a government that understands that growth requires modernisation. Technology isn’t a silver bullet, but a faster, more predictable planning system is exactly the kind of reform house builders and investors have been calling for.
‘The danger now is that political drift stalls momentum just as the foundations for growth are being laid. Investors don’t need another reset; they need delivery. The next prime minister must focus relentlessly on execution, doubling down on the built environment investment needed to unlock private capital.’
Paul Rickard, chief executive of Pocket Living
‘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.’
Jamie Freeman, director at Haringtons UK
‘The risk with the Labour leadership change is not necessarily who replaces Keir Starmer, but the possibility of a prolonged period of political limbo while different candidates position themselves with increasingly headline-grabbing policy ideas around wealth, taxation and property.
‘The market has already spent the better part of two years in a holding pattern because of elections, budgets, policy leaks and constant speculation. Every time confidence starts to return and people feel there is finally a clear runway ahead, something else arrives to create hesitation again.’
Vanessa Hale, chief executive of Real Estate:UK:
‘The resignation of Sir Keir Starmer as prime minister and the prospect of our seventh prime minister in the past 10 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.’
Charlotte Kennedy, chartered financial planner at Rathbones
‘A departing prime minister rarely changes your finances overnight, but political upheaval can create uncertainty that affects markets, confidence and expectations.
‘While Andy Burnham appears to be in pole position to take the helm, whoever ultimately takes power will inherit the same difficult fiscal backdrop and quickly discover there are no easy wins. Sluggish growth, stretched public services and strained public finances mean difficult choices have been deferred, not avoided.’
Image: Shutterstock
Other features:
What Andy Burnham’s victory could mean for housing and planning
Affordable housing: councils have the will, now they need the way
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