New Prime Minister, New Direction?
The UK has a new Prime Minister, with Andy Burnham taking over from Keir Starmer after two years of Labour government. While a change in leadership doesn’t automatically mean lower mortgage rates, it can bring significant changes to housing policy, planning rules and the wider property market.
If you’re buying your first home, remortgaging or investing in property, here’s what you need to know.
What Changed Under Keir Starmer?
During Keir Starmer’s time as Prime Minister, housing was one of Labour’s biggest priorities.
His government focused on:
- Reforming the planning system to speed up housebuilding.
- Delivering 1.5 million new homes during this Parliament.
- Increasing affordable and social housing.
- Reforming leasehold rules.
- Strengthening renters’ rights through the Renters’ Rights Bill.
- Improving energy efficiency in homes.
While these policies aimed to improve housing supply over the long term, mortgage rates continued to be driven largely by inflation, swap rates and decisions made by the Bank of England.
What Could Change Under Andy Burnham?
Andy Burnham has made housing one of the centrepieces of his leadership campaign, with a stronger emphasis on affordability and local control. Although many proposals still require legislation, several themes have emerged.
A Major Council House Building Programme
Burnham has pledged what he describes as the biggest council housebuilding programme in decades, giving local authorities greater responsibility for delivering new homes rather than relying heavily on private developers.
If successful, increasing housing supply could help ease affordability pressures over time.
Reforming Stamp Duty and Council Tax
One of Burnham’s most talked-about proposals is replacing the current council tax system—based on 1991 property values—with a fairer property-based system.
He has also previously supported replacing Stamp Duty with a form of land value taxation, although no final policy has yet been confirmed.
For buyers, this could eventually reduce the upfront cost of moving, although any changes are likely to take time.
More Power for Local Areas
Having served as Mayor of Greater Manchester, Burnham has consistently argued that councils should have more control over housing, transport and planning.
His vision includes devolving more decision-making away from Westminster, allowing local areas to tackle housing shortages in ways that suit their communities.
Will Mortgage Rates Fall?
This is the question everyone wants answered.
The reality is that the Prime Minister does not set mortgage rates.
Mortgage pricing is influenced by:
- Bank of England Base Rate
- Inflation
- UK government borrowing costs
- Financial markets
- Competition between lenders
However, political stability can improve market confidence. Equally, if investors become concerned about future government borrowing or spending plans, mortgage pricing can move in the opposite direction.
What Does This Mean for First-Time Buyers?
Regardless of who’s in Number 10, the fundamentals remain the same.
Lenders will still assess:
- Your income
- Your deposit
- Your credit history
- Your monthly affordability
If future tax reforms or housing initiatives are introduced, they may make buying easier over time, but most buyers shouldn’t delay purely because a new Prime Minister has arrived.
What About Landlords?
Landlords should continue watching government announcements closely.
While Burnham has focused heavily on increasing housing supply and supporting affordable homes, any wider changes to property taxation or planning could also affect buy-to-let investors over the coming years.
Our View at HTG Mortgages
Governments come and go, but the right mortgage advice never goes out of fashion.
Whether you’re buying your first home, moving house or expanding your buy-to-let portfolio, your mortgage should be based on your financial goals—not political headlines.
At HTG Mortgages, we’re a whole-of-market mortgage broker. We search across a wide range of lenders, explain everything in plain English, and do the hard work so you don’t have to.
Frequently Asked Questions
Has Andy Burnham changed mortgage rules?
Not directly. Mortgage lending rules remain the responsibility of regulators and lenders, although future housing and tax policies could influence the wider market.
Will mortgage rates fall because there’s a new Prime Minister?
Not necessarily. Mortgage rates are mainly influenced by inflation, the Bank of England and financial markets rather than the Prime Minister.
Could Stamp Duty change under Andy Burnham?
Possibly. Burnham has previously backed replacing Stamp Duty with a land value tax, but no legislation has yet been introduced.
Should I wait before buying a house?
For most people, buying when you’re financially ready is a better strategy than trying to time political events. The right mortgage product and expert advice will usually have a bigger impact than waiting for policy announcements.