Steve Reed has been appointed as the new Secretary of State for Housing, Communities and Local Government (MHCLG) following Angela Rayner’s resignation over a stamp duty underpayment issue.
Reed (main picture), previously the Secretary of State for Environment, Food and Rural Affairs, brings a wealth of experience to the role.
As a former leader of Lambeth Borough Council and a former portfolio lead for housing across London Councils, he has a deep understanding of local government challenges.
His tenure at DEFRA further adds to his diverse expertise, positioning him to address the ambitious target of delivering 1.5 million homes by 2029.
HUGE EXPERIENCE
Industry leaders have welcomed Reed’s appointment. Faraz Baber, Chief Operating Officer at Lanpro, says: “Steve Reed brings a huge amount of experience to his new role. As a former leader of a London borough, he has an excellent understanding of the challenges of local government.
“His experience will ensure the UK can meet its transition to green energy through new green infrastructure such as onshore wind and solar. Steve’s appointment at MHCLG is one which will ensure the pace of delivery can now accelerate.”
CRITICAL TIME
Reed’s appointment comes at a critical time when the housing sector is grappling with slowing planning approvals and a need for digital transformation in the homebuying process.
Maria Harris, Chair of the Open Property Data Association, says: “We are on the cusp of the biggest digital transformation the homebuying process has ever seen…
“To make that happen, it is vital that the next Housing Secretary steps up to provide the leadership and stability required to carry this work forward and ensure the momentum behind digitisation is not lost.”
COMPLEX BRIEF
Richard Donnell, Executive Director at Zoopla, says: “The new Housing Minister has a huge and complex brief, but their first priority must be to tackle the affordability crisis, which is one of the biggest property-related challenge facing the UK.
“It’s the root cause of so many other problems in the market, from limiting first-time buyers’ access to homeownership to putting intense pressure on the rental sector and pushing rents higher.
“The only long-term solution to truly meet demand and ease market pressures is to build a much greater volume of homes for both sale and rent with a mix of tenures and price points, including private and social housing.
“While ambitious targets like building 1.5 million homes over the course of this Parliament are unlikely to be fully met, the focus should be on creating the right conditions to reach that run-rate by the end of it. Planning reforms are a crucial part of this, as is securing the confidence of builders.”
SUPPORT FIRST-TIME BUYERS
And he adds: “The new Housing Minister will also need to address the uncertainty created by recent speculation over possible tax changes. This has created a ‘wait and see’ strategy among some buyers, with history showing that such speculation can impact market activity and buyer expectations.
“There must be a clear and steadying message to the market regarding any potential tax reforms if they are to avoid a period of prolonged stagnation and maintain consumer confidence.
“Finally, we must also continue the review of mortgage regulations introduced in 2015. While some easing has already begun, there is more work to be done to support first-time buyers, especially in southern England where affordability is most stretched.
“By building more homes and continuing to unlock the mortgage market, the new Housing Minister can create a market that works better for everyone, ensuring homeownership remains an achievable goal and that renters have more affordable options.”
CHALLENGES AHEAD
Nathan Emerson, Chief Executive of Propertymark, says: “With the announcement that Angela Rayner has stepped down from her position, we welcome Steve Reed as he steps into the role of Housing Secretary.
“With this change in positions coming at a time when significant challenges are ahead for the property sector as the implementation of the Renters’ Rights Bill, new Minimum Energy Efficiency Standards and planning reforms are due to come into play, there is a pressing need to ensure that this does not hinder the current understanding and shaping of ongoing legislation and that the UK Government looks to effectively remedy the nation’s housing crisis as an urgent priority.
“We look forward to working with Steve to ensure that future policies are pro-growth and work in practice, and hope he fully engages with the sector, as professionally regulated property agents can support these reforms.”
