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Category: government and politics

Angela Rayner’s sudden resignation from all of her government positions made national headlines last week. Steve Reed has already been appointed as her successor in the role of Housing Secretary.

Will this change in leadership bring significant change to the housing sector, and what does it mean for private landlords specifically?

Background

Rayner found herself at the centre of an official investigation into her failure to pay the correct amount of stamp duty land tax on a property she purchased in Hove. She paid the lowest “main residence” stamp duty rate after placing her actual family home into a trust.

Although Rayner attributed this mistake to poor legal advice she had received, she took full responsibility after Sir Laurie Magnus found that she had breached ministerial code.

Many anticipated her resignation – either voluntary or forced – from the role of Housing Secretary in light of this controversy. Fewer expected that she would also willingly resign from her more prestigious positions as Deputy Prime Minister and Deputy Leader of the Labour Party. 

This dealt a huge blow, both to her own political career, and to her party’s cohesion and credibility. Whether Rayner intentionally used loopholes to avoid paying more tax, or made a genuine mistake, is still a subject of debate. In either case, her decisions were seen to have undermined Labour’s positions on tax policy.

Since her appointment into the Housing Secretary role, Rayner, often photographed in a hi-vis coat and yellow hardhat, has been the public face of Labour’s big ambitions for housebuilding and private rental sector (PRS) reforms. 

Even if Labour’s plans for tackling the housing crisis are not significantly impacted by her departure, the loss of her as a figurehead for their movement is a heavy one.

Revolving doors

Throughout the entire period of the Conservatives being in government, turnover for MPs in important positions was staggeringly high. This was partially caused by disagreements over leadership, as well as the divisive and all-consuming topic of Brexit. 

In particular, reports of housing ministers passing the baton were alarmingly frequent. In a span of only 13 years, there were approximately 16 different housing ministers appointed, which averages out to more than one new minister per year.

This high turnover greatly hampered the Tories’ long-term strategy for the PRS. Attempts to introduce new regulations into the PRS were constantly disrupted.

The Tories’ own precursor to the Renters’ Rights Bill, known as the Renters (Reform) Bill, faced much internal scrutiny in parliament, including from the Tories’ own numbers. In particular, their proposal to abolish Section 21 eviction notices never came to pass.

Private landlords, however, benefited from this gridlocked situation. It meant that government’s intended intervention in the PRS was significantly delayed, allowing landlords to carry on with their business uninterrupted.

In contrast, Starmer’s Labour government has managed to maintain a united front with fewer high-profile sackings or resignations in their first year in power, compared to the Conservative government. 

While this is good news from a public image standpoint, it has also meant that Labour’s controversial PRS reforms have been pushed through parliament at a much faster pace. 

Considering Labour’s firm agenda and the strong alignment of their MPs towards the same goals, Rayner’s resignation may only represent a minor stumbling block.

The new secretary

Steve Reed, MP for Streatham and Croydon North, has been appointed as the next Labour Housing Secretary. He was formerly the Environment Secretary, a role that also focused on large-scale reform.

Housing minister Matthew Pennycook was notably passed over for this role, despite his central role in pushing the Renters’ Rights Bill through the House of Commons.

With the Renters’ Rights Bill being very close to becoming law, Reed has joined at a pivotal time. He will be expected to work closely with Pennycook to ensure that Labour’s planned reforms pass through the last stages of parliamentary debate.  

With this handover still so recent, we have yet to see what specific strategies Reed may bring to the table. We will keep you closely updated on how this develops over the coming weeks.