Sunak becomes Prime Minister: property industry reacts

Rishi Sunak is the UK’s first British-Asian Prime Minister. But what does his appointment mean for the North West?

Sunak claimed the Conservative Party leadership crown on Monday after Penny Mordaunt MP dropped out of the contest. He takes over the role from outgoing Prime Minister Liz Truss, who announced her resignation from the post on Friday.

During Sunak’s campaign during the summer Conservative leadership contest, he had outlined a ten-point plan for the nation. This included crafting “a long-term plan to beat inflation”, investing in levelling up in Scotland, Wales, and Northern Ireland, and protecting the Green Belt.

Nearly everyone Place North West spoke to agreed that Sunak has a tough job ahead of him.

Here’s a taste of how the industry is reacting to future Prime Minister Sunak. Comments have been edited for brevity and clarity.

This could be bad news for Levelling Up

“Rishi Sunak has quite the list awaiting him when he arrives in Number 10.

“In the previous leadership race, [Sunak] made clear that he would be a fiscally cautious Prime Minister. So, we could see a reduction in the various levelling up funds across the region and another change of policy when it comes to Northern Powerhouse Rail.

“However, we would expect freeports to be placed higher up the agenda again. This was a key Sunak policy whilst he was chancellor, so I would expect some announcements on this soon.”

• Tom Morrison, strategic director of economic development at Copper Consultancy.

There are reasons to be positive

“Rishi finally gets the crown. Whilst he faces challenges on almost every front, not least in uniting his own party, there are reasons to be positive about this appointment. He is financially literate at a time when market confidence in UK PLC is essential.

“My hope is this will mean the rumoured £20bn in tax rises – including abolishing the stamp duty cut – that were coming in Jeremy Hunt’s ‘Halloween’ budget, will now be unnecessary.  If that proves to be the case, then there are some grounds for cautious optimism.”

• Paul Boyfield, group head of property at Lexington

We need stability and clarity

“Rishi clearly needs to deliver stability – political and economic – which is really the baseline condition we need to enable major investment decisions to move forward.

“In the short-term, there is also huge ambiguity over some significant public sector funding programmes – Levelling Up, Investment Zones, Brownfield Infrastructure Land funding – and a huge amount of time and money spent progressing projects and applications over the last few months. Clarity on these programmes moving forward and timescales for decision-making, drawdown and spending periods is really important.

“More widely and longer term, how does the assumed ‘Austerity Mark 2’ outlook align with national party politics and general election preparations? Can we leverage the much-needed investment we need in infrastructure, our ‘next stop on the line’ towns, and next-generation devolution in the North West and North more widely?

“There is a hugely important dynamic to be established between the new Prime Minister and our Metro Mayors that we will all be watching closely.”

• Nicola Rigby, principal at Avison Young

Here’s what Sunak needs to focus on

“Sunak has said previously that he would drop the national housing target of 300,000 new homes per year. At a time when there is an ever-growing need for new homes, removing this target would be a retrograde step and so a pledge to refocus on increasing delivery would be a step in the right direction.

“When it comes to planning, it’s important that his government helps facilitate growth using the existing legislative mechanisms in the planning system. Put simply, removing unnecessary barriers and oiling the wheels of the planning process would help boost growth without the need for further wholesale reform.”

• Bill Davidson, managing director of P4 Planning

We have questions

“From a regional perspective, we want to know about the government’s approach to issues like the Levelling Up agenda, the Northern Powerhouse vision and the sticky wicket of HS2.

“What we don’t need are rudderless promises or empty ambitions. Sunak needs to be forthright and upfront about what’s affordable and how it can be achieved. Once equipped with that information, we can prioritise the most important national projects.

“The stakes are simply too high for false promises now. Some issues, like green infrastructure and how we implement it, are time critical and require immediate action.

“What’s more, the issues facing Westminster could lead to a greater push for decentralisation and more power coming to our Northern cities. With clear accounts of what’s affordable coming from central government and an empowered North, Manchester, and Liverpool et al could be given the tools needed to lead the way on several matters of national importance.”

• Jeremy Hinds, director of national retail planning and the North planning team at Savills

Sunak’s government must be proactive

“Sunak’s mantra for taxation to be ‘affordable and deliverable’ is the same approach we need for the effective delivery of new homes. We, therefore, urge the new PM to reconsider the abolishment of five-year housing targets, and at the same time introduce incentives that reward pragmatic LPAs willing to embrace the growth agenda.  We need the carrot and the stick in order to get housing delivery moving.

“A turbulent economy and a shortage of labour could result in development slowing down. And yet we know that development is a key driver of economic growth so it’s imperative that the government proactively supports the planning system to deliver development.

“A core objective of Sunak’s new government should be – at the very least – to invest in LPA planning teams to unlock developments across the country.”

• Becki Hinchliffe, director at Eden Planning

Two changes Sunak must make

“After a prolonged period of political uncertainty, I very much hope that Rishi Sunak’s tenure as Prime Minister will mark the beginning of a more stable phase.

“The planning system, in particular, would benefit from a period of stability. New homes and the economic growth that comes with them will not be delivered unless we plan for them, but the planning system has all but ground to a halt.

“Sunak needs to finally conclude the planning reform debate – housing targets and all. The expectation of reform is the key reason a large and growing number of councils have – entirely rationally – decided to effectively stop planning. Just as importantly, he must make sure planning departments are properly resourced so that they can deal efficiently with the applications submitted to them.

“That would still leave much to be done, but it would be a good start.”

• Paul Smith, managing director of The Strategic Land Group

Planning cannot be forgotten

“Rishi Sunak has pledged to fix our economy and deliver on promises made in the Conservative Party’s 2019 manifesto. But he will need an effective and robust planning system to achieve these goals.

“Our members have shown resilience, and consistent dedication to their profession, but they are concerned that continued uncertainty will delay plans and projects their communities need.

“I have today written to the new Leader of the Conservative Party urging him to provide certainty on planning reforms, adequate funding for planning, and to give local communities a say on what happens in their area. We are actively working to engage government throughout this period of transition, to demonstrate that an effective and robust planning system can be an enabler of economic growth, delivering the affordable homes, public services and critical infrastructure that this country needs.”

•  Victoria Hills, chief executive of the Royal Town Planning Institute