Rishi Sunak will become the UK’s new prime minister after Penny Mordaunt dropped out of the running for party leadership.

He will be the country’s third prime minister is as many months.

Sunak served as chancellor of the exchequer from 2020 to 2022, notably during the coronavirus pandemic.

Previous to this, the MP for Richmond in Yorkshire was chief secretary to the treasury, from 2019, after having worked in the ministry of housing, communities and local government for a year before that.

His notable contributions regarding housing include the 95% LTV mortgage scheme, which was announced in his 2021 Budget, alongside the stamp duty cut extension.

Sunak wins the leadership race after losing to Liz Truss earlier this year.

He will address MPs at 14:30 today.

Woolbro Group director Ben Woolman says: “Rishi Sunak must now work at pace to undo the damage that Kwasi Kwarteng’s mini-Budget inflicted on the housing market.

“The scale of the challenge ahead of him in tackling Britain’s housing crisis is enormous, however, things are already looking up for the new PM.

“Firstly, mortgage rates fell for the first time since the start of September on Friday, though they are still uncomfortably high at 6.55% for an average two-year fixed rate deal.

“And following Jeremy Hunt’s scrapping of most of the tax breaks announced in the mini-Budget, Sunak’s background in finance could serve as an additional calming influence on markets. This, subsequently, should eventually bring mortgage rates closer down to earth again. 

“However, the former chancellor must still exercise caution when planning his next move to tackle Britain’s housing crisis.

“While his pledges to scrap the government’s 300,000 homes-a-year target and block greenbelt development would have resonated with Tory voters during his leadership bid this summer, they would have done little to help struggling first-time buyers in reality.

“Sunak should therefore be mindful that 2024’s general election will come around quickly – and many voters still struggling to get a foot onto the property ladder will be unlikely to show their support at the polls.

“First and foremost, Sunak must get long-overdue reforms of Britain’s planning system over the line once and for all. It is unquestionably the greatest barrier to delivering the new homes this country needs and, therefore, tackling our housing crisis.”