The wider construction industry has responded after Sir Keir Starmer announced that he will step down as Labour leader and Prime Minister, triggering a leadership contest to select his successor.
He will remain in office until the contest is complete, with nominations opening on 9 July and a new leader expected to be in place before Parliament returns in September.
The decision follows growing pressure within the Labour Party after a series of poor election results and concerns over the government's direction. Attention will now turn to the leadership contest, with Andy Burnham widely regarded as a leading contender following his return to Parliament after winning the Makerfield by-election.
For sectors including housing, construction and the wider built environment, any change in political leadership can have a significant impact on policy priorities, investment decisions and long-term planning.
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.”
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.”
Meanwhile, Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said Sir Kier 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,” he continued.
“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.”
But RE:UK’s Chief Executive Vanessa Hale warned that the resignation and the prospect of a seventh Prime Minister in the last ten years is doing little to position the UK internationally as a stable location for investment.
There are concerns this lack of consistent leadership could hinder the UK’s ability 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,” she added.
The Royal Town Planning Institute (RTPI) also hopes for more stability and praised Sir Keir Starmer's contribution to planning reform, while urging his successor to prioritise certainty and stability for planners, investors and housing developers.
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."
