What does a change in leadership mean for the housing market?
Wed 24 Jun 2026
Hugh Frost-Wellings, RICS Director
Monday's announcement that Keir Starmer will step down as Prime Minister has inevitably generated plenty of headlines and speculation.
Political developments are always closely watched by the property market, as changes in leadership can influence everything from mortgage rates to future housing policy. On a positive note, the immediate reaction from financial markets has been relatively measured, reflecting the fact that the prospect of his resignation had already been widely anticipated and factored in by investors. This calm response is significant as stability in financial markets tends to support confidence and continuity across the housing market.
As Mark Davidson, director at DFW, explains: "The housing market has always responded best to stability, which is why periods of political uncertainty are often watched closely by buyers, sellers and landlords alike. However, it’s unlikely yesterday’s news came as a surprise to many home movers, and we don't expect it to materially alter market activity in the short term. The fundamentals remain unchanged, and those with plans to move are likely to continue with them."
Attention will now turn to Labour's leadership contest, with Andy Burnham currently expected to be the frontrunner, although nominations do not open until 9th July and close on 16th July. The bigger question for the property market is not simply who takes over, but what policy direction the new leadership chooses to pursue.
Hugh Frost-Wellings, director at DFW, comments: "The key issue for property owners, buyers and investors will be the clarity that emerges around taxation and housing policy in the months ahead. While it remains too early to know exactly what a new leadership’s priorities might be, there have already been suggestions that Andy Burnham could pursue reforms to property taxation - including changes to council tax. He has also previously indicated support for replacing stamp duty with an alternative form of land taxation. At this stage, however, these remain proposals rather than policy commitments.”
The good news is that greater clarity is expected relatively quickly, with new leadership in place by Parliament’s return in September. While markets rarely welcome uncertainty, they do tend to respond positively when there is a clear timetable for answers, and we expect the housing market to remain resilient while the political picture develops.
If you're looking to discuss how the latest political changes may affect your property plans, get in touch with one of our experts on 020 8954 8806.
Political developments are always closely watched by the property market, as changes in leadership can influence everything from mortgage rates to future housing policy. On a positive note, the immediate reaction from financial markets has been relatively measured, reflecting the fact that the prospect of his resignation had already been widely anticipated and factored in by investors. This calm response is significant as stability in financial markets tends to support confidence and continuity across the housing market.
As Mark Davidson, director at DFW, explains: "The housing market has always responded best to stability, which is why periods of political uncertainty are often watched closely by buyers, sellers and landlords alike. However, it’s unlikely yesterday’s news came as a surprise to many home movers, and we don't expect it to materially alter market activity in the short term. The fundamentals remain unchanged, and those with plans to move are likely to continue with them."
Attention will now turn to Labour's leadership contest, with Andy Burnham currently expected to be the frontrunner, although nominations do not open until 9th July and close on 16th July. The bigger question for the property market is not simply who takes over, but what policy direction the new leadership chooses to pursue.
Hugh Frost-Wellings, director at DFW, comments: "The key issue for property owners, buyers and investors will be the clarity that emerges around taxation and housing policy in the months ahead. While it remains too early to know exactly what a new leadership’s priorities might be, there have already been suggestions that Andy Burnham could pursue reforms to property taxation - including changes to council tax. He has also previously indicated support for replacing stamp duty with an alternative form of land taxation. At this stage, however, these remain proposals rather than policy commitments.”
The good news is that greater clarity is expected relatively quickly, with new leadership in place by Parliament’s return in September. While markets rarely welcome uncertainty, they do tend to respond positively when there is a clear timetable for answers, and we expect the housing market to remain resilient while the political picture develops.
If you're looking to discuss how the latest political changes may affect your property plans, get in touch with one of our experts on 020 8954 8806.