The UK General Election

Sir Keir Rodney Starmer is the new British Prime Minister. Leader of the Labour Party since 2020, Mr. Starmer is a London gentleman raised in Surrey. The son of a toolmaker father and a nurse mother, Starmer comes from a simple, staunchly Labour family. A former lawyer with a strong inclination towards human rights, he describes himself as a progressive centrist. He became a Sir in 2014 after becoming Director of Public Prosecutions in 2008.

The new Prime Minister, recognised for renewing the Labour Party following Jeremy Corbyn’s leadership, led an electoral campaign that decisively ended the Conservatives’ 14-year rule, described by the BBC as a “Labour landslide”. Rishi Sunak left his position with an honest speech, handing over power to Keir Starmer, who secured 412 out of 650 seats. This represents a solid absolute majority, a result close to Tony Blair’s 1997 – 419 seats.

The echo accompanying the Conservatives’ defeat is truly deafening, as is the clear message the British people have unequivocally delivered. Now, for Starmer, the first goal is to restore the British people’s trust in political institutions and steer the country through a historically complex and uncertain period.

Actions not Words

It is evident that the new government intends to proceed with actions rather than words. This sentiment is often reiterated with the clarity expressed by the new Chancellor, Rachel Reeves, without beating around the bush. The first three months of Starmer’s government will be heavily focused on managing international affairs. As early as next week, the new Prime Minister will fly to Washington for the NATO summit, where he is expected to reaffirm British support for the Ukrainian cause. The new parliament will convene on July 9th, and the King’s Speech will take place on July 17th, outlining the new government’s legislative program.

Brexit | Immigration | National Health Service

Brexit has not improved the country’s conditions and has contributed to the Conservatives’ downfall. Keir Starmer will have the opportunity to detail his promise to improve post-Brexit agreements with the European Union without rejoining it. He might also tackle the control of illegal immigration, one of his priorities. Among the first measures of the new government will be the elimination of the “Rwanda Plan.” Subsequently, Starmer will have to address the dire state of public services, including the NHS, with the strikes by doctors and nurses impacting the precarious care provided by the English state healthcare system.

The Property Market

No one knows exactly what will happen in the long term. This uncertainty will likely last for months and we will face other unknowns. In my opinion, like all markets that have developed in uncertain historical moments, this general concern will offer good purchasing opportunities as many sellers may want to sell their properties, aiming to catch the most robust market moment by the end of the year.

That said, the new government’s intention is to build 1.5 million new homes (300,000 per year) with a particular focus on updating the National Planning Policy Framework (NPPF) to ensure sustainable development with affordable housing. Mortgages are expected to be more favorable for first-time buyers. Disused lands will also be used, and low-quality ones freed, while protecting legitimate green belts to ensure that development benefits communities and nature as part of a significant urban reform program.

Taxation

Awaiting the first budget that Chancellor of the Exchequer Rachel Reeves will present to Parliament in October, we cannot overlook one of the most talked-about proposals from the Labour campaign: taxation targeting the wealthiest individuals. It appears that VAT will be introduced on private school fees, the windfall tax on energy companies will be expanded, and there will be a crackdown on non-doms.

Other topics of discussion will include increases in taxes on capital gains, inheritance transfers, and private equity fund managers. There is also expected to be an increase in the foreign resident tax by 1%, from 2% to 3%. Historically, increases in the Stamp Duty Land Tax have led to price drops exceeding the percentage increase in the duty. Regarding income tax, it appears that no increases are expected.

A Prime Minister, before being part of a party, represents each of their citizens, including those who did not vote for them. The fact remains that the people are sovereign and have chosen Sir Keir Rodney Starmer to navigate a period of management and revision that will require a great sense of responsibility and unwavering consistency.