Housing sector calls for stability on housing policy after Starmer resignation 

Housing sector leaders have called for stability and continued focus on housing delivery following Sir Keir Starmer’s resignation as prime minister. 

Sir Keir Starmer has announced his resignation as prime minister, saying a new Labour leader would be in place before parliament returns in September if a leadership contest is held. 

His departure comes as key housing commitments remain in progress, including the Renters’ Rights Act and the government’s pledge to deliver 1.5 million homes during this parliament. 

Inside Housing reported that Starmer referenced the Renters’ Rights Act during his resignation speech. New powers under the legislation have also come into force for councils, enabling them to issue fines to landlords who fail to fix serious problems such as severe damp and mould. 

Sector leaders responding to the resignation have said housing and investor confidence should remain high on the political agenda.  The Chief Executive of the Chartered Institute of Housing said Starmer’s focus on increasing supply, strengthening renters’ rights and championing social housing had been important at a challenging time for the sector.  

The Chief Executive of Propertymark has said housing must remain at the heart of the political agenda, with landmark reforms continuing to progress through Westminster, while other commentators raised concerns about the impact of political uncertainty on investment and delivery.

Savills predicts new homes delivery to fall below government’s 1.5 million target 

New homes delivery in England is expected to fall short of the government’s target to deliver 1.5 million homes over five years, according to forecasts from Savills. 

The real estate group estimates that around 189,000 new homes were built in 2025/26. However, it expects delivery to fall to just over 150,000 homes in both 2026/27 and 2027/28. 

Overall, the research predicts England will deliver an average of 167,500 new homes a year over the next five years to March 2030. This is below the 300,000 homes a year needed to meet the government’s 1.5 million homes target, although the forecast remains in line with the 20-year average for housing delivery. 

The forecast follows earlier warnings from the Home Builders Federation that the government could miss its 1.5 million homes target without stronger policy support to improve affordability and unlock stalled development. 

While the Savills research focuses on completed homes, Planning Portal Index data showed stronger early-stage activity in the housing pipeline, with Q1 2026 recording the strongest opening quarter for new housing applications since Q1 2021. 

However, the forecast points to the continuing gap between planning activity and completed homes, with viability pressures, construction inflation and delivery challenges still affecting the sector. 

According to the Financial Times, Savills said planning consents have fallen by 39%, while housing starts were down 31% in the three years to December 2025. 

Emily Williams, director of Savills residential research, said the number of new homes built was expected to “get worse before it gets better”. 

At this year’s UKREiiF, Planning Portal brought together senior leaders from across the built environment to discuss the rise in new home planning applications in 2025, what this means for housing delivery, and how the industry can work together to overcome viability challenges to turn approved schemes into homes on the ground. – You can read the full recap here. 

Northern home sales overtake London for first time in 20 years 

The value of homes sold in the north of England has overtaken London for the first time since records began in 2006, according to the The Times. 

Between April 2025 and March 2026, home sales across Yorkshire and the Humber, the North East and the North West were worth £68.8 billion. In London, residential sales were worth £67.9 billion during the same period. 

The figures point to a wider shift in the UK housing market. London has historically driven a large share of residential sales value, helped by faster house price growth than other parts of the country.  

However, Savills said the market has changed since the pandemic, with northern regions performing more strongly on both prices and transactions, saying the shift partly “reflects the legacy of the significant house price growth” seen in London before 2016. 

Savills added that this had left the capital more exposed to higher interest rates, made it harder for first-time buyers to get on the housing ladder and pushed some remaining buy-to-let investors to look north, where income returns are higher. 

Weaker price growth in London, particularly for flats, has also affected some homeowners’ ability to build enough equity to move up the property ladder. In parts of the north, stronger price growth has supported more activity among homeowners looking to move. 

The Times also reported that sales of high-value homes in London have slowed, with tax changes affecting demand from wealthy overseas buyers. Savills said this has had a disproportionate impact on the size of the capital’s housing market.