Real estate calls for certainty and commitment as Boris Johnson quits

Real estate industry leaders have bemoaned the damage done to the UK’s  international reputation after turmoil in Westminster and today’s resignation of prime minister Boris Johnson. Johnson resigned as Conservative Party leader after close to 60 MPs stepped down in protest over his handling of scandals, including accusations of harassment levelled at former deputy chief whip Chris Pincher. Johnson said in his resignation speech that “in politics no one is remotely indispensable”, and that he would remain prime minister until his successor is appointed in the autumn. Ahead of his resignation, Johnson launched a cabinet reshuffle, including naming Greg Clark as secretary of state for levelling up, housing and communities following the sacking of Michael Gove. Stuart Andrew, who resigned this week as housing minister, had earlier urged the government to focus again on levelling up and the role of housing in that agenda. Here is how people in the real estate industry have reacted to the political events of recent days. Melanie Leech, chief executive, British Property Federation “The political climate of the past few weeks has damaged the UK’s international reputation and attractiveness to the global investment, which will be essential to the revitalisation of our towns and cities. “At home, millions of people are facing huge pressures on their family budgets and the economy is stalled and teetering on the brink of recession. “The next few weeks must bring a clear vision and decisive political leadership to tackle these challenges and to create the partnership between public and private sectors that can drive forward the critical agendas of delivering more homes and the decarbonisation of the built environment.” Giles Sutcliffe, head of affordable housing, Cluttons  “With a housing and affordability crisis right now in the UK, we need to have a housing minister that is committed and in the post for a strong tenure, rather than a revolving door. “As an industry, we are told housing is crucial but we need to see this in practice. It has only been a few weeks since changes were tabled to the way affordable housing might be provided. “The industry needs certainty so that we can plan ahead and work together across the public and private sector to deliver crucial and fit-for-purpose housing for the UK population.” Guy Horne, chief executive and co-founder, HSPG “It is vital that the importance of meeting urgent demand for housing, is not forgotten amidst the current political chaos. “As the 11th housing minister in 10 years, Andrew’s departure alongside the firing of Michael Gove represents further turmoil for UK housing, which is already in crisis. “Housing supply consistently remains below the government’s target of 300,000 new homes each year, with recent analysis finding the government missed housing targets by 40% in 2021. The next housing minister must not dismiss these targets as arbitrary figures. “As the government emerges from the current political unrest, the importance of addressing the chronic shortage of affordable housing and meeting housing demand must not be forgotten in the race to find the UK’s next leader.” James Blakey, planning director, Moda Living “The property industry – in particular the housing market – desperately needs stable, focused leadership from central government so that we can work together to address the dramatic shortage of homes across the UK. “There is an opportunity for the rental living sector to meet a significant portion of the demand and to deliver quality, sustainable homes for tens of thousands of people. But to realise this, it is vital that we have stability and a genuine desire to make meaningful change from government.” Matt Smith, director of asset management, letting and management, Allsop “We are going to end up with another housing minister, and I think that’s quite disappointing. It’s a shame that the disruption of uncertainty within a political party has impacted on something that has wider consequences for a lot of people. “[Government] seems to think of the role as a stepping stone. [It needs] someone who’s passionate about that role and really wants to make a difference. They really need to start thinking about these things as long-term positions.” Nick Leeming, chairman, Jackson-Stops “Another new housing secretary isn’t surprising as we all watch the turmoil of the past 24 hours in Westminster with more than 50 ministerial resignations. What is good about Greg Clark is that his previous stint on the front line as business secretary, as well having previously served as secretary of state for communities and local government, should put him in good standing when examining the deadlock between housebuilders and government to encourage rather than impede the swift delivery of new homes to meet rising demand. “The levelling up agenda under Gove was a clear Borism that he has since urged his successors to continue to pursue. But whether the Conservatives can retain power in the longer term is something that remains to be seen, with political posturing the course of the day. I hope minsters put the nation first at this critical time for the economy and for the housing market. Halifax reported yesterday that house prices increased 13% in the past year, the highest annual growth since 2004, with a mix of high inflation and rising mortgage rates pushing homeownership out of reach for many. “However, the rate of growth is slowing, with a much steadier outlook for the market likely to be reflected in next stream of residential transaction figures as the lag catches up. We need stability for the economy and housing market to thrive, and that is what many are predicting for the months ahead, so a quick return to business as usual is welcomed.” Russell Pedley, co-founder and director, Assael Architecture “The departure of Michael Gove is levelling up’s false start. Across the UK, in areas in desperate need of regeneration to promote social equality, housing growth and reanimate decaying town centres, the inconsistency of leadership raises questions about the support they can expect at a national level. “New legislation, including the Levelling Up and Regeneration Bill, is likely to be on hold. We can only estimate for how long. Private sector partnerships, to build more homes in the right places and level the playing field for areas in decline, will be more important now than ever.” Trevor Morriss, principal at SPPARC Studio “This latest disaster for the UK government is another setback for the housing sector. Without a consistent position held and plan in place, town centre regeneration and housing delivery will be sidelined to the detriment of people across the entire UK with perhaps the Midlands and the North most impacted.” Marc Vlessing, chief executive, Pocket Living “It is disappointing that a whole generation of younger people have had their hopes of owning a home and having a secure future as a reward for their hard work restricted by a Conservative Party which has torn itself apart over Brexit. “For the past 10 years, government policy has been characterised by at worst chaos and at best drift, leaving the 20-35-year-olds who drive our public services and have so much entrepreneurial spirit as victims of a housing crisis, a cost of living crisis and a political crisis.” To send feedback, e-mail newsdesk@eg.co.uk or tweet @EGPropertyNews Image © James Veysey/Shutterstock