A New Prime Minister – A New Vision for Development?
As Andy Burnham appears increasingly likely to enter No 10, his vision for devolution, housing, planning reform and regional regeneration could have major implications for the property industry.
This week the mist is likely to lift and we should know if there is to be a Labour leadership election. Parliamentary Labour Party nominations open for would-be new Prime Ministerial hopefuls between 9th and 15th July, with candidates requiring the support of 20% of the PLP.
In reality, for Labour, the choice is this: let Andy Burnham be leader uncontested, ending the limbo-land of a Prime Minister fatally wounded and hobbling on in office on 17th July, or prevent future internal party accusations of a “coronation” by putting up a stalking horse candidate so the disaffected can have a voice, continuing the limbo-land in No 10 until the end of August.
With “silly season” about to arrive, it seems highly likely Burnham will be moving into No 10 this month. The markets are watching and waiting to see what changes a Burnham government will bring. The Prime Minister-in-waiting attempted to give a steer in a speech at the Labour History Museum in Manchester at the end of June.
Burnham’s Vision
In his Manchester speech, Burnham spoke about a 10-year economic plan with devolution at its heart. He promised to keep to the fiscal rules to reassure the markets, as failure to do so would force up borrowing costs.
There would also be a new radical approach, moving power away from Whitehall to local areas and empowering mayors and local authorities. A new No 10 office in Manchester would be created to oversee devolution and ensure every part of the country received its fair share.
It would be responsible for essential utilities like water, as well as reindustrialisation and the regeneration of local places. Housing, transport and energy would also be devolved.
Housing and Development
Burnham’s vision included a “Housing First” philosophy, learning from a programme successfully pioneered in Finland. He saw providing a good home as the top of his priority list, arguing: “If you don’t give people a good home, what chance have they in having a good life?” He linked this directly to outcomes in health and education.
Burnham has long argued for the building and refurbishment of council houses and committed himself to the biggest council house building programme in the post-war period. There was also a commitment to bring “higher density residential development to our towns to turn around our High Streets and local centres and increase footfall.”
This has been witnessed in Manchester under his mayoralty, as well as under his predecessors, and in other cities like Liverpool, where local authorities have encouraged developers to come up with plans for new homes which regenerate centres and boost the local economy.
London and the South East
Burnham referenced London many times in his speech. Doing well in the capital is important for Labour’s electoral fortunes, and the party did not do so in the 2026 borough elections.
He was keen to allay fears that his agenda would give to the North at the cost of London and the South. He would give London more powers over education and housing so that it could “remain the world’s greatest capital city”.
He said that the growth of national government had left local government threadbare, which was bad for the people councils serve. In his view, “the whole country suffers when the regions and nations are not meeting their potential and Londoners are left with an overheated economy and overcrowded housing market”.
Where Does Burnham’s Vision Leave the Property Industry?
At first glance, Burnham’s ideas seem good news for developers and house builders. Burnham’s vision for growth may do some tweaking to Starmer’s vision, but “build” is still at its heart.
His desire to build and refurbish council houses, regenerate centres, coastal and rural areas, and bring higher density residential development to our towns should provide opportunities for the construction industry. New building projects could be given a green light to aid the national economic growth Burnham is talking about.
Education reforms also come into this longer term. A greater emphasis on technical skills will, in time, increase the workforce needed for a boosted building programme, filling the gap between a lack of skilled labour and new demand.
Planning Reform and Delivery
The current government’s planning reforms will start to take effect in the autumn, with radical changes to the planning system. The view is that this will speed up the planning application process, with policy-compliant applications being decided through delegated decisions by planning officers and planning chairs rather than planning committees.
There is bound to be conflict between national priorities and local objections, particularly on housing quotas and developments. But the planning reforms have already closed many of the access points NIMBYs have used to block and slow down development.
Final Thought
Above all, for a new Prime Minister moving into No 10 in weak economic times, when it comes to development the critical question is: who pays?
Private sector development and homes for sale do not cost central and local government money. They stimulate growth while keeping to the fiscal rules.
Key Takeaways
- Andy Burnham appears increasingly likely to move into No 10 this month
- His vision places devolution, regional regeneration and local empowerment at the centre of economic policy
- Housing First, council housebuilding and higher density town-centre development are likely to be major priorities
- London and the South East would remain central to his agenda, with more powers over housing and education
- For developers and house builders, Burnham’s approach could create opportunities, but the key question remains who pays
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