Good morning,
As the dawn arrived this morning, the prime minister was still defying his party and clinging on to power, despite a wave of resignations and a very public power struggle with Michael Gove. The delivery boy for the PM’s flagship levelling up policy, Gove was unceremoniously sacked by phone last night after telling reporters that he had advised Boris Johnson to quit.
In addition to the resignations earlier in the day of housing minister Stuart Andrew, levelling up minister Neil O’Brien and communities minister Kemi Badenoch – just three of 48 resignations – the leadership of the levelling up department has been left in tatters, with no real suggestions of who might take the helm.
Whitehall sources told The FT (£) that some job offers were being turned down by Tory MPs.
After all, why settle for a cabinet post, when the top job(£) will soon be up for grabs?
The psycho-drama in Downing Street was largely ignored by European markets(£) yesterday, which staged a recovery(£) as the price of oil slipped below $100 a barrel.
Meanwhile, new chancellor Nadhim Zahawi has promised to cut taxes, potentially reversing the increase in corporation tax teed up by his predecessor. Zahawi has vowed to “get inflation under control and be fiscally responsible”.
But a positive spin can’t change the facts: we are entering a second-half slowdown. Runaway inflation, political turmoil and a growing risk of recession have taken the shine off the first quarter and have set a grim tone for the UK economy. Real estate is unlikely to escape the hurt.
The industry can’t close its eyes to the harbingers of falling values and flatlining rents, writes EG’s editor. But perhaps it is better to catch a falling knife than miss the catch entirely?
Still, it isn’t all doom and gloom! The fifth annual EG Tech Awards yesterday was brimming with positivity as we celebrated the innovators and leaders shaping the future of our industry.
And Greystar has raised an oversubscribed fund targeting residential rental accommodation in Europe, attracting €1.55bn from institutional investors looking for a hedge against rising inflation.
Meanwhile, LXi and Secure Income REIT have put the finishing touches to their £3.9bn merger.
But more than half of Britain’s casinos are too small to benefit from the planned increased cap on gaming machines.
Savills’ property management division has teamed up with training specialist Multiverse to launch an industry-leading data literacy academy.
Avison Young has hired Lendlease masterplan strategist Kat Hanna as director of strategic advisory and place strategy, to support the firm’s strategic approach to placemaking, regeneration and development.
Deborah Cadman has taken on the top role at Birmingham City Council on a permanent basis, after spending just over a year as interim chief executive.
And 60 women journeyed 450km across three countries to raise £67,000 for charity in the latest annual PedElle bike ride. Impressive, right? Don’t worry, you can still do your bit by donating.
A National Trust property that was gutted by fire in 2015 will be reopened as a ruin. The trust said the hollowed-out Clandon Park near Guildford will serve as an “x-ray view”. And perhaps as a metaphor for the state of the nation.
And finally, the idea of Michael Gove being sacked for disloyalty is akin to a leopard being reprimanded for having spots. The old adage about the scorpion who hitched a ride across a flooded river on the back of a frog, springs to mind. But despite the inherent flaws in Govey’s character, it did make a nice change for the industry to have someone in government who actually got things done. So, who will be next? There are unsettling noises being made about Jacob Rees-Mogg and Nadine Dorries… Or will the very notion of levelling up sink with its captain, as more Tories line up against the embattled prime minister? Either way, the department will continue in some form or other. Another secretary of state will be installed by this PM or the next, a new housing minister – can that really be the 13th in 12 years? – will sign the short-term lease on Whitehall’s most flexible office space… Which brings us to Stuart Andrew. As one former housing minister – Chris Pincher – looks set to bring down the entire government, Andrew can simply be congratulated for not staying long enough to do any real damage. But he did at least keep up the role’s tradition of inflating figures. No, not the number of homes built – he left that to the prime minister. In his resignation letter Andrew stated: “This is a role, although having only been in post for six months, I have enjoyed immensely.” Aw, bless. But it is, in fact, one day under five months.
