Earlier this morning, Sir Keir Starmer announced he would be stepping down and newly-elected Makerfield MP Andy Burnham has confirmed he will put himself forward as a candidate to replace him.

Former health secretary Wes Streeting has revealed he will be backing Burnham rather than running for leadership himself, increasing speculation that there may not be a contest if Burnham has enough support.

Whoever ultimately moves into Number 10, will be the seventh Prime Minister in a decade.

Moneyfactscompare.co.uk head of consumer finance Adam French says: “Money markets had already begun pricing in fresh political uncertainty after last week’s by-election results, with gilts and swap rates rising by around 10 basis points and holding at those levels.

“As a result, Sir Keir Starmer’s resignation has prompted a fairly muted response so far, with the effects already largely reflected in funding costs.

“Episodes of political volatility tend to push up borrowing costs as investors demand a greater premium for perceived risk.

“Much will now depend on the fiscal policies put forward by future PM apparent Andy Burnham and anyone else vying for the Labour leadership, particularly their approach to taxation and public spending.

“The lessons of the 2022 mini-Budget remain fresh.

“Fiscal headroom is tight and money markets will be watching the UK closely. I

“f plans don’t add up, the subsequent loss of confidence can quickly drive up borrowing costs.

“Once again, it is households which risk picking up the tab if market confidence is undermined.”

Mortgage and savings platform Tembo’s founder and chief executive Richard Dana says: “Political uncertainty is rarely good news for people making major financial decisions.

“Buying a home is one of the biggest commitments most people will ever make, and confidence matters.

“Whoever forms the next government, the focus on first-time buyers cannot be allowed to slip.

“The challenges are well known: unaffordable housing, insufficient supply and outdated support schemes such as the Lifetime ISA.

“These issues are too important to be put on hold.”

But he says there has been progress with improving mortgage affordability, greater stability in rates and growing optimism among aspiring homeowners, so it is important that momentum is not lost.

Dana adds: “There are encouraging signs that housing will remain high on the political agenda, with proposals around large-scale housebuilding and wider reform of property taxation likely to feature prominently in the debate.

“However, so much remains unknown.

“Increasing housing supply and creating a fairer path to homeownership should be priorities for any government.

“The UK’s housing challenges are bigger than any one political leader.

“What matters now is maintaining a clear, consistent commitment to helping the next generation build financial security and achieve homeownership.”

Sotheby’s International Realty executive partner Becky Fatemi says: “Starmer’s departure creates a fresh layer of uncertainty for the property market.

“Buyers and investors can cope with almost anything if they know what they’re dealing with. What they dislike is uncertainty.

“Whether Labour opts for a leadership contest or Andy Burnham is effectively crowned as Starmer’s successor, the market will immediately start assessing what it means for wealth, property and investment.

“We saw this ahead of last year’s Budget, when transactions slowed and many buyers chose to wait for clarity.

“A prolonged contest risks putting the market into a holding pattern once again.

“At the top end, where purchases are often discretionary, confidence is everything.

“There is also the prospect of a double whammy: uncertainty over future policy, followed by concern about the policies themselves.

“If Burnham becomes Prime Minister, many buyers will question what his long-standing support for property tax reform means for higher-value homes.

“The concern is simple: higher costs make the UK less competitive, reducing investment and encouraging globally mobile wealth to look elsewhere.”

Homebuying agency Harringtons’ director Jamie Freeman says: “The risk with the Labour leadership change is not necessarily who replaces Keir Starmer, but the possibility of a prolonged period of political limbo while different candidates position themselves with increasingly headline-grabbing policy ideas around wealth, taxation and property.

“The market has already spent the better part of two years in a holding pattern because of elections, budgets, policy leaks and constant speculation.

“Every time confidence starts to return and people feel there is finally a clear runway ahead, something else arrives to create hesitation again.

“Property decisions, particularly at the upper end of the market, are often delayed simply because buyers become nervous about making long-term commitments during periods of political instability.

“If a leadership contest drags on for months, there is a genuine risk that 2026 becomes yet another year where the market is waiting for clarity rather than moving forward.”