Earlier today, PM Keir Starmer announced he would be stepping down from his position and as leader of the Labour Party, following an extended period of unpopularity
Waves have been made in the construction industry by the prime minister’s announcement that he will resign.
In the past two years under his leadership, the industry has been rocked by several different events, including changes to the NPPF, the Planning and Infrastructure Bill entering law, energy subsidies given in the Industrial Strategy, and the setting of the 1.5m new homes target.
Besides that, we’ve also seen a new housing minister in Steve Reed after Angela Rayner stepped down, the conclusion of the long waited Grenfell Inquiry, and controversy after controversy after controversy regarding the HS2 project.
Below, we’ve compiled some reactions from industry leaders following the PM’s announcement to stand down.
The Royal Institute of British Architects
RIBA president, Chris Williamson, said: “Sir Keir Starmer’s service has made some positive changes to the UK and I wish him and his family well. But any leadership change creates uncertainty at a critical time for the built environment sector, as we continue to face urgent housing, climate and cost of living crises.
“Strong leadership is needed to provide the stability and focus needed to realign national priorities and accelerate action to address them.
“We’ll be keeping a close eye on potential leaders priorities and engaging with our stakeholders to ensure the built environment remains a core focus of the UK’s future and encouraging the use of our industry’s expertise.”
Real Estate: UK
Vanessa Hale, chief executive of RE:UK, said: “The resignation of Sir Keir Starmer as Prime Minister and the prospect of our seventh Prime Minister in the last ten 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 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.”
The Royal Town Planning Institute
Rachel Fisher, chief executive of the Royal Town Planning Institute, said: “Sir Keir Starmer took office with a clear economic mission: to reform the planning system and get Britain building. Under his leadership, planning has moved to the heart of England’s economic, housing and infrastructure ambitions, with major reforms introduced over the past two years.
“The RTPI has developed a great working relationship across the government, including work on the revised National Planning Policy Framework, Devolution and Community Empowerment Act, and Planning and Infrastructure Act.
“While we are entering a time of political uncertainty, what we need is policy continuity. Whoever succeeds Keir Starmer must provide planners, investors and housing developers with the certainty and clarity they need to deliver. That means fewer reforms, fewer policy tweaks, and a sustained focus on implementation. The priority now should be making the system work consistently and effectively, rather than continually redesigning it.”
The National Federation of Builders
Richard Beresford, chief executive of the National Federation of Builders (NFB), said: “Starmer was the first Prime Minister in some time that promised planning reform and acted on it. The early days saw reforms without consultation, a commitment in the face of critics and an unwavering dedication to ensuring Britain builds things again.
“His ambition must be recognised and credited; however, the pace of implementation, or rather the plodding nature of it, after a strong early showing is also part of his legacy.
“His successor must get back into the fast lane, ensuring further procurement reforms support local businesses. SME housebuilders get their medium sized site before broader planning reforms come in. And late payment is ended before the year end.
“They must also understand that construction is the key to growth, but the industry is not in a healthy place because of government policy. If the next PM does not understand that and seek to solve its challenges, any ambition to deliver housing, roads, rail, hospitals, commercial space for modern jobs, amenities, clean power or anything built, will see the zero-sum game of capacity and land use continue to hamper British growth and prosperity.”
Home Builders Federation
Neil Jefferson, chief executive of the Home Builders Federation (HBF), said: “The Prime Minister deserves credit for the ambition he and his Government have shown in seeking to increase housing supply, particularly through the positive engagement with industry and the planning reforms announced during his tenure.
“While those changes were welcome, 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.”
The Federation of Master Builders
Brian Berry, chief executive of the FMB, said: “Over the course of Sir Keir Starmer’s time as Prime Minister it was welcome to see a pro-building agenda placed at the heart of his government’s plans. But 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. 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.”
Browne Jacobson
Peter Ware, partner and head of government at UK and Ireland law firm Browne Jacobson, said: “Sir Keir Starmer’s resignation will prompt a rush to define his legacy, but for those working in and with the public sector, there is a genuine record of structural ambition worth acknowledging.
“The English devolution programme has been one of the most significant shifts in local government architecture in a generation. The move from a two-tier to unitary authority structure, along with a greater number of mayoral strategic authorities, should unlock more place-based decision-making and give local areas real tools to shape their own economic futures.
“Arguably the most ambitious policy brought forward by this government is in planning reforms, featuring the Planning and Infrastructure Act as well as the most significant changes to the National Planning Policy Framework since its inception. While not without its challenges, this could be transformational in the long term for unlocking new housing and infrastructure development.
“Meanwhile, the commitment to social housing, backed by the largest public investment in half a century, offered a meaningful signal about where national priorities lie, even if the government has been slow in translating into completions on the ground.
“Whenever there is a change in leadership, there will always be concerns that long-term projects already underway could be undone. The damage this would create means it’s vital the next leader recommits to all these workstreams.
“The biggest challenge for this government has been the erosion of a coherent, communicable vision. What began as a bold mission-driven programme gradually lost its shape under the pressure of fiscal constraint and political turbulence.
“It’s therefore crucial the next Prime Minister sets out a new vision that goes further and faster, while giving the public and private sectors something tangible to get behind. This can’t just be a case of restating missions, but in creating the delivery architecture that makes them credible.
“Critically, this means honesty about the tools needed for government to succeed in its ambitions.
“If investment in social infrastructure such as hospitals, schools and transport projects is a priority, for example, then we need to acknowledge the role that can be played by modern public-private partnership models that learn the lessons from previous models such as PFI and PF2. The sooner that case is made clearly, the sooner the market can respond.”
Search Acumen
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.
“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.”
