Property professionals have begun responding to Sir Keir Starmer’s announcement that he will step down as prime minister and Labour Party leader, with industry figures calling for political stability and continued progress on housing reform.

The resignation, which comes amid mounting pressure within the Labour Party, has prompted questions about the future direction of government housing policy, including planning reform, housebuilding targets and measures aimed at improving affordability.

Estate agents, developers and property organisations have urged whoever succeeds Starmer to maintain momentum on key housing initiatives and provide certainty for consumers and businesses operating in the market.

Industry reaction: 

Becky Fatemi, executive partner at United Kingdom Sotheby’s International Realty: “Starmer’s departure creates a fresh layer of uncertainty for the property market. Buyers and investors can cope with almost anything if they know what they’re dealing with. What they dislike is uncertainty.

“Whether Labour opts for a leadership contest or Andy Burnham is effectively crowned as Starmer’s successor, the market will immediately start assessing what it means for wealth, property and investment. We saw this ahead of last year’s Budget, when transactions slowed and many buyers chose to wait for clarity.

“A prolonged contest risks putting the market into a holding pattern once again. At the top end, where purchases are often discretionary, confidence is everything.

“There is also the prospect of a double whammy: uncertainty over future policy, followed by concern about the policies themselves. If Burnham becomes Prime Minister, many buyers will question what his long-standing support for property tax reform means for higher-value homes. The concern is simple: higher costs make the UK less competitive, reducing investment and encouraging globally mobile wealth to look elsewhere.”

Jamie Freeman, director at Haringtons UK: “Buyers, sellers and investors simply want to know where they stand, what the rules are and what the likely direction of travel is over the next few years. 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.

Property decisions, particularly at the upper end of the market, are often delayed simply because buyers become nervous about making long-term commitments during periods of political instability. If a leadership contest drags on for months, there is a genuine risk that 2026 becomes yet another year where the market is waiting for clarity rather than moving forward.”

Adam Feather, managing director, Robert Anthony Estate Agents: “The housing market tends to respond best to stability and clear policy direction. As attention turns to Labour’s leadership contest, it is important that housing remains high on the political agenda. The industry will be looking to the next prime minister to provide certainty around planning reform, housebuilding and support for homeownership, all of which are critical to maintaining market confidence and increasing housing supply.”

Susannah Streeter, chief investment strategist, Wealth Club: “Andy Burnham looks set to become Britain’s seventh prime minister in around a decade, a remarkable level of political upheaval for a developed economy. Combined with the lingering effects of Brexit, the revolving door at Number 10 has tarnished the UK’s reputation as a stable place to do business and made it harder to attract the long-term investment needed to drive stronger economic growth.

“His [Keir Starmer’s] resignation has kicked off another round of speculation about the direction of policy ahead. The pound is languishing at multi-month lows, borrowing costs remain highly elevated, and the domestically focused FTSE 250 has sunk further into the red. While some uncertainty may be easing as Burnham’s path to Number 10 appears increasingly clear, he’s an unproven economic force and so uneasiness looks set to linger.

“Andy Burnham has tried to reassure markets by signalling that he will largely stick to fiscal rules and take a more cautious approach to spending. He also appears willing to tackle the UK’s large benefits bill, arguing that welfare reform should focus on helping more people into work. Investors will also be scrutinising how Burnham’s interventionist instincts translate into national economic policy.”

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.

“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.

“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.”

This article is being updated. 

EYE NEWSFLASH! Prime minister Sir Keir Starmer resigns as leader of the Labour Party