Industry rallies as former whip takes housing post

After two years courting former housing minister Christopher Pincher, residential investors and the build-to-rent industry are braced for a change in leadership. Former whip Stuart Andrew, who has no background in the sector, was appointed housing minister on Wednesday, making him the fifth housing minister in as many years. Andrew takes the post at a critical time for the industry – as the Department for Levelling Up, Housing and Communities prepares to roll out its flagship Levelling Up strategy, with rental reform, planning reform and cladding remediation all on the agenda. The Rental Reform Bill seeks to abolish “no fault” section 21 evictions and rewrite tenancy and eviction policy, while the government is also pursuing a new Decent Homes Standard and funding from developers to foot a cladding remediation bill topping £4bn. Institutional investors had previously worked closely with the department and Pincher on proposed taxation that was subsequently changed to exclude BTR. The former housing minister had also praised the sector and encouraged growth. Ian Fletcher, director of policy at the British Property Federation, said Pincher “grasped the important contribution build-to-rent is making to housing supply and delivering quality homes”. He added: “Whilst we suspect many members would have liked to have seen some continuity in the housing minister post, the new minister Stuart Andrew comes with our welcome as somebody who will appreciate the important contribution that the private sector can make to our great regional cities and housing their communities.” Grainger chief executive Helen Gordon also acknowledged strides taken by Pincher to understand BTR and its fundamental differences compared with housebuilders, and added it was “obviously frustrating” to have yet another housing minister. Andrew has been deputy chief whip for the past two years, after holding the government whip role for six months, and was parliamentary under secretary of state (minister for defence procurement) between 2018 and 2019. He previously voted against an amendment to the Housing and Planning Bill in 2016 that would require landlords to keep homes fit for human habitation. He has also consistently voted in favour of charging a market rent to high earners renting council homes, and supported phasing out secure tenancies for life. Gordon added: “As a sector, we welcome the opportunity to work with the new housing minister Stuart Andrew in an equally positive manner, especially at such a pivotal point in our growth and maturity, and we remain committed to continue to educate wider government on the benefits this sector brings, both in terms of housing supply and also rental standards.” Co-founder of Assael Architecture, Russell Pedley, said: “Without a chapter defined by long-standing ministerial leadership, and with policy like the planning white paper which hasn’t stuck, we must be careful not to fall back to square one with every new rotation of the revolving door.” He added: “At a time when the government’s approach to building safety, housing affordability, and actioning the levelling up agenda remain remarkably unclear, confidence that the government has control at the helm will be essential to chart a course through these choppy waters.” The industry will continue to focus on engagement with the Department for Levelling Up, Housing and Communities, but also the Treasury, as it navigates the upcoming Building Safety Levy and proposed Orphan Fund, alongside wider investment challenges. Tracy Blackwell, chief executive of Pension Insurance Corporation, which has a number of social housing and BTR investments, has long called for reform of Solvency II to unlock billions of investment of this kind in the UK. “The government cannot level up the UK alone, but it will have to work in partnership with the private sector and with long-term investment from the financial services sector,” said Blackwell. “However, to enhance this flow the government needs to ensure that financial regulatory reform doesn’t end up slowing or stopping the flow of investment into our cities and towns and draining the life from the levelling up project.” To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews Photo: UK Parliament