"We hope the next Secretary of State will continue Angela Rayner’s robust support for the builders not the blockers but will also take the opportunity to rethink policies which are damaging confidence such as the surprise ban on upward only rent reviews and the delayed homes penalty"
- Melanie Leech - British Property Federation
Angela Rayner has resigned from her positions as Deputy Prime Minister, Housing Secretary, and Deputy Leader of the Labour Party after an independent inquiry concluded she breached the ministerial code by underpaying approximately £40,000 in stamp duty on her recent property purchase.
The controversy stems from Rayner's acquisition of an £800,000 flat in Hove earlier this year. She admitted to underpaying stamp duty due to receiving incorrect legal advice regarding her eligibility for the higher rate of tax on second homes. She acknowledged the error and took full responsibility, stating she should have sought more specialised tax advice.
Today's resignation marks the eighth ministerial departure from Prime Minister Keir Starmer's cabinet, compounding the government's challenges. Starmer expressed his sadness over her departure, praising her political contributions and integrity.
As housing secretary, Rayner was vocal about the government’s ambition to build 1.5 million new homes over this parliament. In May, she told the industry “to get on and build”, launching the government’s consultation on implementing measures to improve build-out transparency, which closed on July 7.
In September 2023, she became the shadow levelling up secretary and shadow deputy prime minister and had been deputy prime minister and housing secretary since Labour came to power in July 2024.
Rayner joined the Labour Party in 2015. She has also resigned as deputy Labour leader, having held this position since April 2020.
Implications for the UK property industry
Rayner's resignation has significant implications for the UK property market, particularly concerning stamp duty policies. As Housing Secretary, Rayner played a pivotal role in shaping housing policies, including tax regulations affecting property transactions.
The controversy surrounding her stamp duty underpayment has brought renewed attention to the complexities of property tax laws. Experts have described the stamp duty system as a "confusing mess," highlighting the challenges individuals face in navigating the rules.
The incident may prompt a reevaluation of stamp duty regulations and their enforcement, potentially leading to reforms aimed at simplifying the system and ensuring greater transparency. Such changes could impact property buyers, investors, and the broader housing market landscape.
Industry reactions
Melanie Leech CBE, Chief Executive, British Property Federation, said: ”Now more than ever business and investor confidence in the UK matters if we are to grow the economy, create jobs, and deliver the modern infrastructure we need."
"Such changes at the top of Government do little to reassure those looking to invest and looking to deliver, especially within our sector which relies on stability. We hope the next Secretary of State will continue Angela Rayner’s robust support for the builders not the blockers but will also take the opportunity to rethink policies which are damaging confidence such as the surprise ban on upward only rent reviews and the delayed homes penalty."
"Most urgently, however, the new Secretary of State must work with the sector to tackle viability issues and ensure barriers to delivery are addressed. This includes a laser focus on resolving delays at the Building Safety Regulator, which are having a chilling effect on new development across the country.”
Lawrence Turner, Director of Boyer, said, “Angela Rayner’s planning reforms rightly acknowledged the scale of the Housing Crisis and the urgent need for bold, decisive action. Her resignation must not become an excuse for delay. The new Secretary of State now bears the responsibility to continue to unlock delivery and work to win the support of local authorities to provide the homes and infrastructure communities desperately need.
"For plan-making, continuity here is critical. Local authorities must receive clear assurance from Government that the 30-month local plan timetable remains in place and better guidance on when and how to prepare their new Plans. Without this, plan-making risks stalling at the precise moment when momentum is most needed.
"Secondly, the new SoS must act swiftly to remove two major barriers to housing delivery: nutrient neutrality and water scarcity. While the Nature Restoration Fund announcements were a welcome start, they must be accelerated to provide certainty for developers and local authorities and to have any real impact.
"Thirdly, Planning departments need proper resourcing. Councils should be allowed to retain 100% of planning fees, enabling investment in staffing and the recruitment of new planners to speed up decision-making. In addition, greater urgency is needed behind the delivery of new towns and major growth areas. These strategic projects offer the scale of housing and infrastructure that piecemeal development cannot achieve, but they require more work to increase momentum through direct government support, infrastructure investment, and clear direction to unlock land quickly.
"The new Secretary of State will be judged not by words, but by outcomes. If they can build consensus across local authorities and drive real progress on housing delivery, there remains a genuine opportunity to “turbo-charge” house building within this Parliament.”
