Michael Gove’s return to the role of secretary of the Department for Levelling Up, Housing and Communities was mostly welcomed by those in the mortgage sector but there was a strong emphasis from many on their expectations and the work that needs to be done. 

Gove was appointed to the role by Rishi Sunak yesterday, just three months after being sacked by former prime minister Boris Johnson.

Speaking on Gove’s return, Mather and Murray Financial independent financial advisor Samuel Mather-Holegate says: “Like him or loathe him, the reason Gove appears in so many governments is because he gets things done.”

“With Gove’s mandate, I would expect to see 18 months’ worth of serious investment in the north before a general election is called,” Mather-Holegate adds.

Interactive Investor senior personal finance analyst Myron Jobson says: “Gove will be responsible for housing, communities, local government in England and the levelling up policy. The role can be condensed down to building prosperous communities which is a challenge amid the biggest fall in living standards in generations.”

“The worry is levelling up initiatives could fall to the wayside as the government seeks to plug the gaping black hole in the public’s finances.”

Meanwhile, the National Residential Landlords Association chief executive Ben Beadle congratulated Gove on his reappointment. 

Beadle comments: “Top of his in-tray will be progressing with the plans he previously worked on to reform the private rented sector, including ending Section 21 repossessions.”

“We will work constructively with the new Secretary of State to ensure the final reform package has the confidence of responsible landlords and tenants alike.”

“This includes the need for action to tackle anti-social tenants, scrapping plans that would decimate the student housing market, and reforming the courts to ensure legitimate possession cases are dealt with more swiftly.” 

When Gove last held the role, he published two consultations, one on levelling up and the second on providing a fairer private rented sector. 

Intermediary Mortgage Lenders Association (Imla) executive director Kate Davies says: “As one of the most experienced ministers in the new cabinet, Gove has a reputation for getting things done – and had already made progress on a number of key issues (not least the cladding scandal) – before his abrupt departure from the Johnson administration.”

“Instead of facing the prospect of yet another new face at the Department for Levelling Up, Housing and Communities, we therefore, welcome Gove’s return and hope that this signals the importance which both he and the new prime minister attach to this vital role.”

“Gove’s own analysis of the issues has been detailed and clear – we urgently need more and better housing stock. The process is lengthy and complex, from the granting of permission to develop and to acquisition and build-out, and the wider-reaching requirements for appropriate infrastructure to support new developments.”

Davies adds: “Each of the new ministers has been presented with a parcel of knotty problems: Gove’s challenges will be to increase public sector housing while also maintaining support for the vital private rental sector and increasing first-time ownership at a time when markets are volatile, supply is worryingly low, and measures such as Help to Buy are coming to an end.”

Also commenting, Portfolio Mortgages content and communications manager Louis Mason says he is “optimistic about his reappointment”.

Mason says: “Having the previous experience in the role should really give him a good footing to start making some meaningful changes. However, his re-appointment to the levelling up secretary feels like a political appointment to keep some of the Conservative Party happy, rather than a positive forward move for the country. Only time will tell, and the results are yet to be seen.”

On Gove’s agenda, Mason says he expects to see “a lot of work on the construction industry and a push for more energy efficient homes and eco-friendly construction methods”.

“In the housing market, and specifically the mortgage world, we have seen countless purchases fall through due to issues with energy performance certificates (EPCs) and the energy performance of properties.”

He also suggests that “delivering the homes our country needs should absolutely be on Gove’s priority list”.

“It’s no secret that we have a huge shortage of property stock in the UK and Gove should be prioritising investing in new construction and developing buildings to provide new homes,” he adds.

Earlier this year during his first stint as housing secretary and under Johnson’s leadership, Gove highlighted the country’s “significant housing challenges” such as a historic lack of supply compared to the level of population growth.

He also suggested that it’s “unlikely” that the government would consistently hit the 300,000-target year on year.

In September, the Department for Levelling Up, Housing & Communities revealed that there were 51,730 dwellings where building work started on site between 1 April and 30 June. 

The figure represented a 21% increase compared to the previous quarter and a 15% increase compared to the same quarter in 2021.

Speaking on this, Finanze chief economist Edgar Rayo says this goal that “has yet to be achieved after he admitted in May this year that it could not be met”. 

“This should be his priority, but it remains a challenge considering that more UK households will find it difficult to sustain their monthly mortgage payments next year. His reappointment yesterday can either turn out to be an opportunity to redeem himself, or give this country false hopes yet again.”

Meanwhile, Riverside Mortgages owner and mortgage broker Lewis Shaw suggests there are three big things Gove could do to start the process of making things better.

“Firstly, build more social housing; secondly, simplify planning and stop nimbyism and finally, agree on a plan with Tees Valley Mayor Ben Houchen to deliver funding for infrastructure projects to turbocharge the local economy.”

“Suppose they want to really demonstrate they’re committed to ‘levelling up’. In that case, they should put their money where their red cabinet boxes are to make Teesside a shining example of what can be done,” Shaw adds.