Angela Rayner has resigned from her posts as Housing Secretary, Deputy PM and Deputy Leader of the Labour Party following an investigation into her actions by Sir Laurie Magnus.
Sir Laurie looked into here purchase of a flat in Hove for £800,000, where she chose to pay the lower ‘main residence’ Stamp Duty rate (£30,000 instead of £70,000) after putting her northern family home into a trust.
Rayner, in a letter to the Prime Minister, said: "I deeply regret my decision to not seek additional specialist tax advice given both my position as housing secretary and my complex family arrangements.
"It was never my intention to do anything other than pay the right amount."
Magnus was appointed as the Prime Minister's Independent Adviser in December 2022 by Rishi Sunak, he concluded that she acted in ‘good faith’, but this wasn’t enough to save her role in Government.
Sir Laurie concluded: "The responsibility of any taxpayer for reporting their tax returns and settling their liabilities rests ultimately on themselves alone."
In addition to paying an extra £40,000 in stamp duty, Rayner could also face a possible HMRC fine of £12,000.
Industry Comment
Lawrence Turner, Director of Boyer, said: “Angela Rayner’s planning reforms rightly acknowledged the scale of the Housing Crisis and the urgent need for bold, decisive action. Her resignation must not become an excuse for delay. The new Secretary of State now bears the responsibility to continue to unlock delivery and work to win the support of local authorities to provide the homes and infrastructure communities desperately need.”
Colin Brown, Head of Planning & Development at Carter Jonas, said: “I think the industry will want to know that the changes the Government has made to the planning system will remain the focus for the incoming Secretary of State, and that there will be no rowing back. There is no doubt that publication of the revised NPPF in December 2024 and the introduction of the Planning and Infrastructure Bill have been important moments, pointing to a clear change in direction to build the homes the country needs.
“The resignation letter from the former Secretary of State and the response from the Prime Minister indicate this is still central to the Government’s thinking so reassurance can be derived from that. What we would still like to see is the use of more tools to support the demand side for new housing especially with affordability remaining challenging and we hope the new Secretary of State will focus on that, together with continuing better resourcing for local planning authorities.”
Maria Harris, Chair of the Open Property Data Association (OPDA) said: “On 9 February, Angela Rayner set out a clear commitment to digitising homebuying, recognising the urgent need to modernise the process and improve outcomes for consumers. Losing that advocacy at such a pivotal moment is disappointing for everyone working to deliver much-needed change in the housing market.
“We are on the cusp of the biggest digital transformation the homebuying process has ever seen, with open data standards set to speed up transactions, reduce fall-throughs and deliver better outcomes for consumers. To make that happen, it is vital that the next Housing Secretary steps up to provide the leadership and stability required to carry this work forward and ensure the momentum behind digitisation is not lost.”
William Nichols, Regional Director of Lanpro, said: “Angela Rayner’s resignation, after last night’s revelations, became inevitable. It is also regrettable: she had been at the forefront of some bold housing and planning policies.
“The immediate question for the industry is who now carries the baton at MHCLG. Matthew Pennycook would be a logical choice – he has shown a strong grasp of the issues and would offer continuity. But continuity is not always what’s needed. This moment could be an opportunity to rethink aspects of policy that have been less successful, particularly the emphasis on local government reorganisation.”
Paul Rickard, Chief Executive at Pocket Living, said: “It is vital that the next Secretary of State for Housing continues with their predecessor’s commitment to reforming the planning system and getting Britain building again. With housing starts at near record lows, only by taking decisive action on the barriers to delivery and by utilising all those within the housebuilding industry willing and able to build homes, will government be able to start to see new homes come forward. The SME housebuilding industry has a critical role to play in this and we would urge the new Secretary of State to be even bolder in supporting this area of the industry most likely to be able to get homes built.”
