Brokers react to Deputy Prime Minister's resignation as exit casts a shadow of uncertainty over housing policy and mortgage market
Angela Rayner’s resignation as Deputy Prime Minister and Housing Secretary leaves the Government’s housing agenda in a state of uncertainty, just as the sector had been bracing for an ambitious programme of reform.
Ms Rayner stepped down today after an inquiry concluded she underpaid around £40,000 in stamp duty on the sale of a second home in Hove. While the ethics adviser found she had acted in good faith, her failure to seek proper guidance was deemed incompatible with continued office. She has relinquished all ministerial responsibilities.
Sir Laurie Magnus, the independent adviser on ministerial ethics, explained why he concluded that the ministerial code had been breached. He outlined how, having sold her share in the family home, Ms Rayner technically ceased to own the property. However, because it was held in trust and the beneficiary was under the age of 18, it was deemed that she still had an interest in the property and was liable for the additional stamp duty. Critically, while she was advised that the lower rate of stamp duty was applicable, this advice was qualified by the fact that it was not expert tax advice, which she then failed to seek.
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David Titherington, of The Mortgage Station, said she was right to step down but, upon reflection, believes the case is not as straightforward as first reported.
“I was pretty outraged initially when this story first broke,” he said. “It sounded as if she had purchased a new property and expanded her portfolio, and therefore the additional stamp duty should be due. However, having read the report sent to the Prime Minister by Sir Laurie Magnus, it does appear genuinely complex.”
He added: “I am not defending her, and she is right to step down for not seeking further tax advice as suggested. I also think the story is not as black and white as it is made out to be. I wonder how many advisers would have got the SDLT correct if presented with this as a fresh case?”
Her departure now creates a vacuum at the heart of housing policy. Labour’s flagship pledge to deliver 1.5 million new homes within five years was already facing questions of feasibility; now its future looks still less assured. For mortgage lenders, brokers and housebuilders, the immediate concern is whether a reshuffled Cabinet will bring clarity - or drift.
Policy uncertainty at a delicate moment
Regardless of Rayner’s fate, change is in the air ahead of the Autumn Budget, with national insurance on rental income, capital gains tax changes on primary residences, and stamp duty reform just a few of the ideas being floated as the Government looks to address an alarming budget deficit.
Adrian Anderson, of Anderson Harris, believes Rayner’s position was untenable but could spur meaningful and positive change around stamp duty policy.
He said: “[Rayner’s resignation] demonstrates the need for consumers to seek specialist tax advice and seek out a decent specialist firm for this advice. If the secretary of state for housing could not understand the tax due for her property purchase, could this incident be a silver lining for the property industry to help make stamp duty more straightforward?”
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Titherington agreed: “There is talk of a [stamp duty] overhaul anyway. Maybe this will highlight and hit home that there really are issues with the current system. Hopefully it drives change for the better.”
The industry has also been awaiting further details on reforms to the private rental sector, particularly proposals that could tighten landlord obligations and reshape buy-to-let demand. Without Rayner at the helm, momentum may falter. Any delay risks prolonging ambiguity for lenders exposed to the landlord market, while also unsettling tenants who had expected stronger protections.
Housebuilders, already under pressure from higher borrowing costs and labour shortages, are unlikely to welcome further policy instability. Mortgage market participants know well that construction delays cascade through the lending chain: fewer completions reduce volumes, constrain remortgage activity and stall first-time buyer pipelines. Rayner’s departure risks reinforcing the perception that delivery targets may quietly be softened.
Anthony Emmerson, of Trinity Financial, said: “I do think Labour needs to rethink their position on private landlords, as they will soon find out that they need a private rental sector to have a prosperous economy to have social mobility. If they just got Britain building and we had sufficient houses for the people, most of these issues will sort themselves out. Lack of supply is the crux of most of the UK housing problems.”
A chance to reset - or retreat
The government may use the moment to recalibrate expectations. A new Housing Secretary could adopt a more cautious stance on targets, prioritising credibility over ambition. While that may frustrate campaigners for affordability, mortgage lenders may welcome a more measured policy environment - provided clarity is restored quickly.
For now, lenders and brokers must contend with heightened uncertainty. Developers may defer major projects until they see the direction of travel, and investors will look closely at whether Labour can present a coherent replacement strategy. In the short term, this could dampen confidence in housing supply growth and temper lending projections.
Rayner’s resignation has injected volatility into an already fragile housing agenda. For the mortgage industry, the challenge is not just whether Labour’s headline pledge of 1.5 million homes can be delivered, but whether policymakers can restore confidence swiftly enough to keep the housing and lending markets moving.
