Rishi Sunak will become Prime Minister after former PM Boris Johnson and Penny Mordaunt dropped out of the latest Tory leadership contest
Rishi Sunak will become the first British Asian prime minister and the third Conservative party leader in seven weeks.
Current PM Liz Truss resigned last week after a tumultuous forty four days in office, in which time her mini-budget caused an unprecedented economic downturn and devalued the pound, inflating mortgage rates in the process.
A relatively short but eventful career in politics
As chancellor of the exchequer during the COVID-19 pandemic, Sunak oversaw significant economic measures such as the furlough scheme and Eat Out to Help Out to support the ailing hospitality industry.
It was the resignation of Sunak and then-health secretary Sajid Javid that led to the goverment collapse preceding Boris Johnson’s resignation.
He has also faced criticism on the tax status of his wife Akshata Murty, a billionaire. Labour leader Keir Starmer has accused Sunak of being ‘completely out of touch‘ in the face of an increasing cost-of-living and energy crisis.
Industry reactions to Rishi Sunak becoming prime minister
Ben Woolman, director at Woolbro Group
“Rishi Sunak must now work at pace to undo the damage that Kwasi Kwarteng’s mini-Budget inflicted on the housing market.
“The scale of the challenge ahead of him in tackling Britain’s housing crisis is enormous, however, things are already looking up for the new PM.
“Firstly, mortgage rates fell for the first time since the start of September on Friday, though they are still uncomfortably high at 6.55% for an average two-year fixed rate deal.
“And following Jeremy Hunt’s scrapping of most of the tax breaks announced in the mini-Budget, Mr Sunak’s background in finance could serve as an additional calming influence on markets. This, subsequently, should eventually bring mortgage rates closer down to earth again.
“However, the former chancellor must still exercise caution when planning his next move to tackle Britain’s housing crisis.
“While his pledges to scrap the Government’s 300,000 homes-a-year target and block greenbelt development would have resonated with Tory voters during his leadership bid this summer, they would have done little to help struggling first-time buyers in reality.
“Mr Sunak should therefore be mindful that 2024’s general election will come around quickly – and many voters still struggling to get a foot onto the property ladder will be unlikely to show their support at the polls.
“First and foremost, Mr Sunak must get long-overdue reforms of Britain’s planning system over the line once and for all. It is unquestionably the greatest barrier to delivering the new homes this country needs and, therefore, tackling our housing crisis.”
Melanie Leech, chief executive of the British Property Federation
“The last few months have damaged the UK’s international reputation and economic standing, the country urgently needs strong and competent leadership to rebuild confidence. The new Prime Minister needs to confirm their leadership team as soon as possible and provide clarity on their strategy for stabilising the economy and their policy priorities.
“The property industry stands ready to work with Rishi Sunak in creating a thriving economy and addressing regional inequalities through the delivery of new homes, work and leisure spaces that are essential to revitalising our towns and high streets.”
Simon McWhirter, director of communications, policy & places, UK Green Building Council
“This is a chance for a fresh start at the top of government and to put in place the strategic, long-range policies that can turn around the UK’s fortunes on energy security and cost of living; address the threats to climate and nature head-on; and turbocharge our economic recovery.
“In his last campaign to become PM, Rishi Sunak rightly promised to lead a national effort to cut energy waste and insulate millions of homes. That would help tick every box. Our industry is ready to support him to deliver on it.
“The new PM also has an opportunity to ditch controversial and unwise policies, such as the recently mooted Investment Zones, where planning and environmental protections were set to be torn up. This was a recipe for more conflict and delay over new home and building developments. Businesses don’t want a race to the bottom. Instead, they need certainty and ambition to deliver much-needed green growth and investment. That’s why our planning system needs to be overhauled to bring it into line with the UK’s legally binding climate and nature commitments.
“Greening homes, offices, public buildings and infrastructure is a massive growth opportunity for UK PLC and one the new prime minister can’t afford to miss as he seeks to steady the ship of government and charts a fresh course.”
Eddie Tuttle, policy, research and public affairs director, Chartered Institute of Building
“Levelling up, net zero and energy efficiency in existing and new housing remain key issues we’d like the new PM and their cabinet to focus on in relation to their immediate priorities, which will clearly be the economy and cost of living crisis.
“The levelling up agenda provides significant opportunities for the construction sector, through local job creation and stability, while property retrofit schemes to improve energy efficiency, for example, will further boost the sector and go some way to helping residents mitigate rising energy costs.
“Long-term infrastructure and capital investment planning is also very much needed to provide a level of assurance and confidence for the industry and its supply chain, together with the need to address the current delays in the planning system, which are constraining supply.”
High Blaza, senior consultant at Sandstone Law
“So what will be different from the Truss ‘blink and you’ve missed it’ premiership. How could we know? Not a single speech from Sunak throughout the campaign and so we find ourselves with a new PM elected by fewer than 200 people and with no discernible mandate. During his summer jousts with Truss, Sunak adopted the ‘triple repeat’ approach, believing (presumably) that if he said the same word more than twice, it would be remembered as if it had been carved into tablets of stone.
“But does anyone still recall the ‘brownfield, brownfield, brownfield’ mantra Sunak trotted out to reassure the Conservative shires that their green belts would (despite the sacrifice of them in so many already adopted local plans, not to mention that little parcel of agricultural land he needed to accommodate his new swimming pool) be safe?
“And what of charter cities where planning laws may become a distant memory? And then there’s the ‘bonfire of regulations’ which look destined for the shredder as a result of The Retained EU Law (Revocation and Reform) Bill 2022?
“The trouble is, no-one, least of all the tiny handful of people who supported Truss, then Johnson, then Mordaunt, then Sunak himself knows or cares. The best we can take from the past 4 months is that we are that much closer to a General Election when the politicians who want our votes will need to put their cards on the table. Until then, it’s the wild west out there.”
