​Sector ‘looking for confidence’ as Starmer resignation clears way for fifth PM in four years

Keir Starmer has announced that he will resign as prime minister, with new Makerfield MP Andy Burnham widely expected to succeed him. 

In a tearful address outside Downing Street this morning, the prime minister said he had “heard the answer of my parliamentary party” on the question of whether he was the right person to lead Labour into the next general election.

He set out a timetable which would see nominations for a new party leader open on 9 July and be completed by the summer recess in mid-July.

Former Greater Manchester mayor Burnham, whose by-election victory against Reform UK last week precipitated Starmer’s fall, has already announced he will put himself forward for the leadership, while his most likely rival Wes Streeting has said he will not.

If no other contender emerged, this would mean Burnham could become prime minister next month. If there is a contest, the timetable would mean a new leader was in place before the return of parliament in September.

“I will remain in post as prime minister until the contest is complete, and I will do everything I can to ensure an orderly handover of power,” said Starmer.

Reflecting on the prime minister’s coming departure, Neil Jefferson, chief executive at the Home Builders Federation, said Starmer “deserves credit” for the government’s ambition to increase housing supply, adding the “positive engagement with industry and the planning reforms announced during his tenure”. 

But he said that “increased taxes and policy costs on development, alongside a lack of support for buyers, have constrained house building and created an increasingly challenging environment for the industry that a new leader needs to address if we are to increase supply”.

Richard Steer, chair of Gleeds, warned that markets “tend to adapt quickly to political change” but are “less tolerant of uncertainty”.

“With preparations underway for a new Budget, this is a moment when stability and clear decision-making are particularly important,” he said.

“The built environment sector is looking for confidence around infrastructure investment, housing delivery and planning reform. 

“Whatever the political outcome, the priority should be maintaining momentum on policies that support long-term economic growth and investment.”

And Gavin Smart, chief executive of the Chartered Institute of Housing, said his organisation “recognises” the outgoing prime minister’s service, as well as “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,” he said.

“As a new Prime Minister is appointed, it is vital that this momentum continues and that housing remains a top priority.” 

Paul Rickard, chief executive of affordable developer Pocket Living, spoke positively of Starmer’s efforts in the housing sector.

“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,” he said.

“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 Reynolds, chief executive at RLB UK & Europe, said that while changes in government leadership “inevitably” bring “a degree of uncertainty to the market”, the announcement of Starmer’s resignation “brings to an end a period of speculation, which in itself provides greater clarity for UK plc”.

He said what was needed now for the built environment was “policy stability, swift decision making and long-term certainty”.

Reynolds added: “A new administration also presents an opportunity to restore market confidence and to demonstrate how our sector can act as a catalyst for productivity – through sustained investment in housing, infrastructure and regeneration, driving increased output and economic growth.”

Recruitment and Employment Confederation chief executive Neil Carberry said: “More change in Whitehall could be a challenge to the stability firms need, but business are adept at getting on with it.

“Whoever is Prime Minister, one thing will remain true though: only private sector growth can address the fiscal challenges the government faces and put money in the pockets of people across the country.”

Carberry said firms need a government that does not make trading more difficult by “heaping up ever more regulatory and taxation costs” and urged “pragmatism” on what he described as ”the unworkable approach to guaranteed hours set out by the Employment Rights Act”.

Brian Berry, chief executive of the FMB, said that with Starmer as PM it was “welcome to see a pro-building agenda placed at the heart of his government’s plans” but that “words only go so far, and ambition has not yet resulted in delivery on the ground”.

“Small builders continue to face tough trading conditions, with rising costs, employment troubles, planning delays, weak consumer confidence and stalling housing numbers all holding back growth,” he said.

“The next Prime Minister must keep the nation’s small builders at the heart of the Government’s work. They will need a much stronger focus on delivery, cutting barriers to building, and creating the conditions for small local firms, who make up the majority of the industry.”