The UK has a new Prime Minister. What key decisions have been made in his first week, and what could they mean for the sector?
Burnham has wasted no time since taken office, and already made a number of key decisions and policy announcements. Whilst there have been no direct policy decisions relating to the housing sector yet, his decisions so far give an insight into his direction of travel, and he has been outspoken of his focus on social housing. This commitment has seen a divided response from the political sphere, as numerous articles have warned of an incoming tax raid, and a recent research report urged the PM to abandon the plan for a council housebuilding boom.
Friday 24th July marks the christening of one of Burnham’s first major decisions, the creation of no.10 North. The previous Manchester mayor hasn’t been shy about his desire to devolve power away from Westminster, and Friday marks his first full day working from a new parliamentary base in the heart of his former stomping ground. This ambition to devolve powers away from central government and further into the hands of local authorities could bode well for housing output, as Manchester City Council recently published that they have built more homes than all 32 London boroughs combined in the past year.
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On his first address as Prime Minister, Burnhams made clear his first priority in government: ending rough sleeping. Tackling Britain’s rising homelessness crisis will not only prove a social good, but an economic one, at a time where more and more Britons are finding significant barriers to the world of work. Burnham indicated his desire for a housing first approach, a system that provides homes as the first point of rehabilitation, one that has seen meteoric success in other countries such as Finland. The success of such an approach will rely on Burnham’s delivery on his promise of mass council housebuilding, as well as investment into the correct support for those recovering from homelessness.
Burnham also announced his ministerial appointments, with the notable return of Angela Rayner as housing secretary. Rayner resigned last year following controversy surrounding underpaying stamp duty on a property purchase, a case for which she was cleared of any deliberate wrongdoing in May. Considering Burnham’s focus on expanding council housebuilding, the re-appointment of Rayner isn’t a massive shock as the importance of council and social housing has been a core pillar of Rayner’s political career.
Rick Henderson, Chief Executive of Homeless Link, who sits on the expert advisory group to the Inter-Ministerial Group on Homelessness and Rough Sleeping said:
“It is extremely encouraging to see housing and homelessness so high on the new Government’s agenda.
“We welcome the return of Angela Rayner as Secretary of State, and look forward to seeing her build on the foundations that were established in her previous tenure. Through the championing of the Renters Rights Act, the establishment of the Inter-Ministerial Group on Homelessness and Rough Sleeping, and starting the process that led to the National Plan to End Homelessness, we have already seen a commitment from Angela Rayner to tackling homelessness, and we now look forward to working with her to deliver on the much needed ambitions that the new Prime Minister has set out.
“Homeless Link’s member organisations – who provide vital services to people experiencing homelessness up and down the country – stand ready to help with long-term solutions to prevent and end homelessness for good.”
Other key decisions from Burnham include slashing business rates for pubs and restaurants, and launching a national £2 cap on bus fares, something he had previously rolled out in Manchester. Although these decisions are unrelated to the housing sector, they do indicate a direction of travel that is more closely aligned with Labour’s left wing philosophy, something many criticised previous PM Kier Starmer for seemingly abandoning. Burnham has branded himself a man of the people, with his priorities seemingly set on improving the living standards of the working class. Should this philosophy hold true during the course of his leadership, cutting down both the bloated social housing waiting list and the grotesque amount of households living in expensive temporary accommodation should be near the top of his priority list.
After just a week in power, Burnham appears to have a positive appetite for getting things done quickly. He has made a number of decisions that could provoke a feeling of cautious optimism, however, any speculation on the future trajectory of his decision-making as Prime Minister is purely superstition. Starmer also entered government talking of long-awaited change and record housebuilding levels, and we know how that story ended.
