Government moves swiftly to replace Angela Rayner, who resigned following stamp duty scandal

The Government has acted with speed to fill the vacancy left by Angela Rayner, who resigned as Deputy Prime Minister, Deputy Leader of the Labour Party, and Housing Secretary following a property tax scandal that rocked Westminster and prompted a major Cabinet reshuffle.
Ms Rayner’s departure came after an inquiry into her underpayment of stamp duty on an £800,000 flat in Hove, East Sussex. She paid £40,000 less than the required surcharge, having declared the property as her main residence rather than a second home. In her statement, Ms Rayner cited the “significant toll” the episode had taken on her family, and said she took “full responsibility” for the error.
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Her resignation is a significant loss for Labour at a time when the party faces increased scrutiny over its approach to housing and taxation. The episode has also triggered a wider reshuffle, with Prime Minister Sir Keir Starmer seeking to “reset” his government’s agenda and restore confidence among voters and industry stakeholders.
In the wake of this political turbulence, Steve Reed has been appointed Secretary of State for Housing, Communities and Local Government. His appointment comes at a pivotal moment for the property and mortgage sectors.
A career of reform and advocacy
Reed brings decades of experience in both local and national government, as well as the private sector. He began his professional life in educational publishing, working for Routledge, Thomson International, the Law Society, and Sweet & Maxwell.
Reed entered politics through local government, being elected to Lambeth Council in 1998. He became leader of Lambeth Council in 2006, where he was widely credited with turning around one of London’s worst-performing boroughs. He also held senior roles as Deputy Leader of Local Government Labour and Deputy Chairman of the Local Government Association, and was recognised as one of the most influential council leaders in the country.
Elected to Parliament for Croydon North in 2012, and later representing Streatham and Croydon North from 2024, Reed has held several shadow cabinet positions, including Shadow Secretary for Communities and Local Government, Justice, and Environment, Food and Rural Affairs. He served as Secretary of State for Environment, Food and Rural Affairs from July 2024 to September 2025, before taking on the housing brief.
Reed is known for his advocacy on social issues, most notably his work on mental health reform—championing “Seni’s Law” to limit restraint in mental health units—and for pioneering cooperative council models to empower local communities.
Reed is openly gay and married his partner in July 2022. He was appointed Officer of the Order of the British Empire (OBE) in 2013 for services to local government, and was sworn into the Privy Council in July 2024, granting him the title “The Right Honourable” for life. He is known for his commitment to diversity and inclusion, and has been an active promoter of equality throughout his career.
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A new direction for housing policy?
As Housing Secretary, Reed is tasked with delivering on Labour’s ambitious housing targets and reforms, including changes to the planning system and tackling homelessness. While his personal views on property taxation have not yet been widely reported since his appointment, his record suggests a firm approach to council tax obligations—he once argued that councillors who refused to pay council tax should be barred from voting on financial matters.
The reshuffle has prompted speculation across the mortgage and property sectors, with industry figures eager to see whether Mr Reed’s appointment will herald a fresh approach to longstanding challenges, such as housing supply, planning reform, and support for first-time buyers.
Anthony Emmerson, of Trinity Financial, said: “I do think Labour needs to rethink its position on private landlords, as it will soon find that a private rental sector is essential for a prosperous economy and for social mobility. If the Government simply got Britain building and provided sufficient housing for the population, most of these issues would resolve themselves. Lack of supply is at the heart of most of the UK’s housing problems.”
The National Residential Landlords Association (NRLA) welcomed Mr Reed’s appointment, with chief executive Ben Beadle urging him to prioritise the Renters’ Reform Bill, which aims to overhaul England’s private rented sector by abolishing section 21 “no-fault” evictions and introducing stricter rules for landlords.
He said: “We welcome Steve Reed’s appointment as Housing Secretary. At a time of substantial change for the rental market, we look forward to working constructively with him. Top of the agenda must be ensuring the smooth implementation of the Renters’ Rights Bill. Alongside this, there is a pressing need to support long-term investment in new, decent-quality homes to rent and to ensure the private rented sector operates on the basis of trust and confidence between landlords and tenants.”