“Does he have ‘Big Beast’ credibility?” Real estate’s views on new housing secretary

Real estate experts have urged the government’s new housing secretary, Steve Reed, to prove his ‘big beast’ credentials as he takes the reins from Angela Rayner, who resigned over a stamp duty scandal. Reed, MP for Streatham and Croydon North, and a former leader of Lambeth Council, moved from his role as environment secretary, which he has held for the past 14 months.

Real estate leaders welcomed Reed’s built environment experience, including his co-chairing of the Vauxhall Nine Elms redevelopment while at Lambeth.

“He understands development from his time at Lambeth,” said Helen Gordon, chief executive of Grainger. “And [housing minister] Matt Pennycook is very experienced and has completely embedded himself in the residential market over the last year. Hopefully it’s a good combination.”

In a social media post, Richard Berridge, a consultant in the single-family housing space and a founding member of the BTR Alliance, said: “Steve Reed doesn’t have a standalone ‘housing secretary’ background, but his leadership in Lambeth and his shadow cabinet roles give him both practical experience in housing delivery and policy-level familiarity with housing and planning issues.”

However, Berridge added: “Does he have ‘Big Beast’ credibility? Not so sure that he can carry through all Rayner’s work with the same authority.”

Close engagement

Also on social media, Peter John, a civil law barrister at Five Paper who worked with Reed in his previous career in local government, said: “Steve gets politics – he has a feel for the zeitgeist and an ability to make a political point with strength and clarity. He will also get the need to continue to do all that he can to stimulate the housing market which faces so many challenges. He will be prepared to talk to the development industry and understand their problems.

“He has an incredibly full portfolio – not least with local government reorganisation. But his abilities as a political leader and considerable experience in local and national politics equip him for the months and years ahead. He is the perfect choice to lead at MHCLG.”

Melanie Leech, chief executive of the British Property Federation, said: “We look forward to working with [Reed] in his new role as secretary of state for housing to unlock investment, tackle viability challenges and make sure the legislative and policy framework supports the real estate sector to thrive and help to deliver the economic growth the UK so desperately needs.

“His predecessor made a bold start on reforming the planning system and empowering the English regions to strive for growth. We now need to collectively ensure that that agenda not only continues but that government works with the real estate industry closely to help deliver our collective ambitions.”

Mark Washer, group chief executive of developer SNG, said: “It’s good that housing has maintained its central place in the government’s agenda with a strong secretary of state in Steve Reed. He will need to make sure the department and its 1.5m home milestone carries the same weight in cabinet.

“The government’s message this week is that it is focused on delivery. For that to be a reality, it’s essential that Reed continues close engagement and listens to housing associations which can turn the progress of the last year in areas like planning into a sustainable future of good, affordable homes for the millions of people who need them.”

Rayner’s regrets

Rayner resigned as secretary of state for housing, communities and local government, also stepping down also as deputy prime minister and deputy leader of the Labour Party, after an ethics investigation found she underpaid stamp duty on a property purchase in Hove, East Sussex, by around £40,000.

Rayner admitted the error, citing flawed legal advice, and said she “deeply regrets” not seeking specialist tax counsel given her government role and personal circumstances. “I take full responsibility for this error,” she wrote, insisting it was never her intention to pay anything less than the correct amount.

Her resignation followed a report by independent ethics adviser Sir Laurie Magnus, who noted that while the stamp duty rules were “complex” and Rayner had been told twice in writing that she needed only pay the lower level, the advice explicitly did not constitute expert tax guidance.

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