UK Leaders Update: How will new appointments affect the property sector?

UK Leaders Update: How will new appointments affect the property sector??

Autumn?2022 is already proving to be full of interesting developments as several prominent UK leaders have been?displaced, disposed or replaced, foretelling change on the horizon...?

There’s a new Monarch, a new Prime Minster, and a new Levelling Up Housing & Communities Secretary – An interesting turn of events that have shaken the UK to its core as the UK?begins to wonder what is in store over the coming months.??

With the new appointments all being made within 7 days of each other, the newcomers will be looking to make their mark in British history, so no doubt we will see the business and domestic landscape change as the new leaders begin to push their agendas and forge the future of the country.??

These changes come at such a critical and testing time for the UK economy, so one thing is for sure, the new leaders will need to settle into their new positions with haste. Failing to do so, could result in dire consequences for the nation and delays in progress already made by their predecessors as they attempt to continue existing commitments while adjusting to their new positions. The new appointments’ trial by fire has now begun with?each one of them is at risk of being overwhelmed with the demand for their time – All during a period where clear direction and decisive action are needed the most.?

In the property sector, many homeowners, tenants, landlords, building companies, and housing associations are already suffering in the uncertain climate as they push back against the added strain from the impact of the cost-of-living crisis, economic downturn, energy price rises, house price rises, and more.??

To lessen the blow and provide some much-needed clarity on what to expect next as well as how it will impact the property industry. Previous comments, campaigns, causes, and predictions have been laid out below. Nothing is set in stone as of yet, but if we can get a good idea of where we are heading if we consider what each of these newly appointed leaders has already said or been working towards...?

New Monarch: King Charles III?

Queen Elizabeth II passed away on Thursday 8th September 2022. The nation experienced a 10-day mourning period and King Charles addressed the nation to honor her Majesty. As Britain’s longest reigning monarch, there won’t be many who remember a time when our late Queen didn’t sit on the throne. Now, at 73 years of age, Charles will be attempting to fill those shoes.?

In his lifetime, Charles has supported many initiatives to build a stronger economy and support learning and development. Most notably for the property sector is The Prince’s Accounting for Sustainability Project, which aims to inspire positive action by finance leaders to work towards stronger business models, and the Prince’s Trust which provide support for individuals and organisations in learning and development through apprenticeships and inclusion projects, as well as providing financial assistance across the UK.?

Concerning property, the closest correlation to current issues is the skill shortage within the construction sector. Efforts are currently being made to address skill gaps and encourage more young people to start a career in a trade. With Charles's background, efforts to address these concerns from within the building industry should benefit from his extensive experience in managing related projects through The Prince’s Trust.??

Furthermore, the ex-Prince of Wales has also played a leading role in creating and developing the Foundation for the Built Environment and spoken about sustainable housing that helps to meet the requirements of modern households and extended communities, giving particular emphasis on where sustainability and tradition meet.??

Charles has outlined a belief that simply adding technology and gadgets to modern homes isn’t enough to create a building environment where the needs of homes and businesses are met on a fundamental level. He denotes that the changes needed to address concerns within the industry go back to the very core of the building and the planning of new development sites. This includes building design, and community layouts, and even stems back to the viability of materials selected and educating workforces to create a landscape where progression and growth are proactively supported.?

New Prime Minster: Liz Truss?

Just two days before the death of Queen Elizabeth II, Liz Truss was appointed as the new leader of the Conservative Party and is now the 56th Prime Minster of the UK. This shake-up comes after an intense leadership battle with opponent Rishi Sunak following Boris Johnson stepping down as PM on 6th September 2022.??

Taking decisive action to address concerns about the cost-of-living and energy supply crisis, the new Prime Minster has already laid out her first objectives as the new leader stating that she intends to reinstate an energy price cap and tackle the excessive price rises that are the result of the ongoing conflict between Russia and Ukraine.??

“I will deal hands-on with the energy crisis forged by Putin’s war. I will take action this week to deal with energy bills and secure our future energy supply…By delivering on the economy, on energy, and on the NHS, we will put our nation on the path to long-term success,” - Liz Truss, UK Prime Minster?

The recent removal of the energy price cap by Ofgem, which has resulted in gas and electricity bills rising by as much as 80%, is set to affect businesses and individuals from across the UK meaning that many households and organisations are concerned that they won’t be able to light and heat their properties in the coming months. To combat this, the new PM has already outlined her plans to cap household energy bills at ￡2,500 for two years.?

Furthermore, Liz Truss has also previously shown support for calls to free up land within a half-mile radius of railway stations so that the land can be used to develop new homes to address the UK housing shortage. An idea that was adopted by Miss Truss after the release of a paper by, the now Levelling Up Housing & Communities Secretary, Simon Clarke in 2018. Liz Truss argued that supporting this move could help the government to free up land to build as many as one million new homes near London alone.?

New Levelling Up Housing & Communities Secretary: Simon Clarke?

Following the appointment of the new Prime Minster, a new cabinet was assembled and new roles were allocated, including the role of Levelling Up Housing & Communities Secretary which was awarded to Simon Clarke. The role has been filled by Simon after serving as Chief Secretary in the department for the last year under the leadership of Rishi Sunak and Nadmin Zahawi.??

The new Levelling Up Housing & Communities Secretary has previously had a lot of involvement in the property sector by supporting proposed reforms to planning systems. Back in July 2021, he even took to Twitter to urge parliament to support the reforms that would have meant councils are given set housing targets and told to select areas that were to be given automatic planning permission for developers:?

“England’s housing crisis is a problem of land supply, and until we become serious about tackling this, too many people will continue to be excluded.”?

He went on to state: “Sensible planning reform, allowing communities to protect areas they cherish while designating others for good-quality development, with strict design codes, can break the deadlock and ensure we don’t continue to prioritise the interests of those who have homes over those who don’t.”?

As the author of a paper calling for green belt land within half a mile of railway stations to be freed up for the development of housing, which was supported by Liz Truss at the time of release, Simon stated the following:?

“Across England, this small release of land would create enough land supply for at least 1.5 million new homes – and potentially many more were the radius to be widened even slightly – while leaving 98% of all existing green belt land entirely untouched.”?

“We should unleash a home ownership revolution across England by developing new criteria to require local planning authorities to release green belt land that is not worthy of the name.”?

The aim of this was to address issues regarding access to viable building land to make room for developments to address the housing shortage. Perhaps contradictorily to this, Simon Clarke does not appear to be a supporter of the targets to build 300,000 new homes every year by the mid-2020s – plans that were originally laid out to address the crisis by previous Prime Minster, Boris Johnson.?

Mr Clarke has also proven to be an avid supporter of cutting carbon, managing to successfully lead a cross-party campaign calling for a legally binding net zero target to address the impacts of climate change. As a result, he managed to secure backing from 192 MPs, who signed a letter in support of the campaign, which eventually resulted in net zero legislation being passed in June 2019.?

It would also appear that Simon Clarke can be very determined in enforcing his strategies. He has previously been accused of leaning on the Bank of England attempting to prevent interest rate rises, as well as his comments to Michael Gove regarding the cost of updating cladding, which gave him the green light to effectively threaten companies into submission. In a leaked letter he told Gove:?

? “You may use a high-level threat of tax or legal solutions in discussions with developers as a means to obtaining voluntary contributions from them”.?

This interesting array of characters is now settling into their new positions. Right now, it’s anyone’s guess what tangible impact each new appointment will have in the long-term future. However, if their previous statements and activities, both political and otherwise, are anything to go by, they would seem to make for a positive foreshadowing in the construction and property sector.??