The resignation of Sir Keir Starmer is “no surprise” say property professionals, after the prime minister announced he would be stepping down with a leadership contest open for nominations on 9th July.
A new leader of the Labour party will be in situ ahead of the return of parliament after the summer recess, Starmer said in his resignation speech on the steps of Downing Street.
After a weekend of speculation, Sir Keir Starmer said he steps down having set about delivering a “fairer country, with dignity and respect, where everyone is seen, everyone is valued. Wealth and opportunity for all, not just the privileged few.”
Pointing to his successes, the prime minister said he had delivered “the biggest improvement in rights for workers and renters in a generation. The biggest uplift in defence spending since the Cold War. Small boat crossings falling, asylum hotels closing, protecting young people from social media, and half a million children being lifted out of poverty because of the choices that I made.”
Andrew Lloyd, managing director at Search Acumen, said: “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.
“Housebuilders, 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.”
Nathan Emerson, CEO at Propertymark, said: “Housing must remain at the heart of the political agenda. Landmark reforms continue to progress through Westminster, and they must deliver on their promises.
“We have seen some of the most significant changes to the rental sector in over 30 years with the implementation of the Renters’ Rights Act, alongside a commitment to build 1.5 million new homes to meet growing demand.
“Meeting future housing requirements requires clear political ambition and consistent leadership, especially as we embark on further reforms to the home buying and selling process.
“Propertymark will continue working closely with the UK Government to help deliver positive change for current and future generations. However, concentrating on the ‘here and now’ and ensuring consistency must be the core priority as any leadership transition proceeds.”
With newly-elected Makerfield MP Andy Burnham already announcing his plans to run for leadership, Jeremy Leaf, north London estate agent and a former RICS residential chairman., echoed shared similar concerns.
“I am sure what Andy Burnham and Keir Starmer could agree on is the importance of additional activity in the housing market, which is not only good for property but the wider economy in view of its multiplier effect.
“The key element which has been holding back activity has been lack of confidence and instability. After a promising start, unfortunately Starmer seems to have lost touch with what people on the ground want and need from their housing.
“What we are looking for is the shortest possible handover of power to reduce that instability and transition towards a more growth-orientated agenda where prospective owners and tenants can more readily aspire to homeownership and better rentals. Unfortunately, the lack of direction has prompted too many people to sit on their hands rather than getting on with their lives when it comes to their properties.”
Lloyd added: “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 housebuilders 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.
“The UK’s growth story will ultimately be judged not by political headlines, but by whether we can build more homes, attract more investment and create the conditions for businesses to scale. The next few months will determine whether confidence grows or fades.”
