Housing sector responds to Keir Starmer’s resignation

During his address, Sir Keir mentioned the introduction of the Renters’ Rights Act.

New powers in the legislation kicked in for councils today, enabling them to be able to issue fines of up to £7,000 if private landlords fail to fix problems like severe damp and mould.

The prime minister’s resignation also comes days after a campaign group urged him to personally intervene in the building safety crisis to address the “glacial progress, blame game and buck-passing”.

What next for housing?

After Andy Burnham won the Makerfield by-election last week, he has now confirmed that he will run to become leader of the Labour Party and prime minister.

Some reports have said Mr Burnham could run unopposed in any leadership challenge, but other MPs are rumoured to run.

A prolonged election would create more uncertainty, and Reform UK has already called for a general election. The Liberal Democrats have said the public is “sick” of constantly changing prime ministers.

If Mr Burnham is crowned as leader, it could mean a cabinet shake-up that includes new MPs in the housing department and changes to Homes England’s Social and Affordable Homes Programme, which is already going through bids.

As mayor of Greater Manchester, Mr Burnham pledged to build 10,000 new council homes in the region by 2028. However, only 611 new social homes were completed between 2024 and 2025.

He also said the government has not gone further enough in its reform of Right to Buy and previously called for a complete suspension.

During Mr Burnham’s time as mayor, the Housing First scheme was introduced in Manchester, and one in six participants reported as sustaining a tenancy have moved home.

The voluntary Good Landlord Charter was also launched, which involves private and social landlords applying to become a member by showing they are meeting “legal minimum standards” for renting homes.

Initial sector reaction

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.” 

Mark Washer, group chief executive at Sovereign Network Group: “Whenever there is a change of political leadership, especially at the top of government, the leaders of organisations face an assessment of the changes it will bring and must anticipate what it will mean not just now but for decades to come.

“In recent years, these assessments have been coming thick and fast thanks to six prime ministers in less than 10 years (not to mention the number of housing secretaries and ministers), which is challenging for a sector like housing that thrives on stability.

“Through all the drama, often the overall difference of that change in leadership will be small, but some will leave a long legacy of either success or difficult choices.”

Mr Washer has written in Inside Housing about what the change political leader might mean, which you can read here.

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.”

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.

“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.”

Nathan Emerson, chief executive of Propertymark: “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.”

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.”