Angela Rayner has been named secretary of state at the Ministry of Housing, Communities and Local Government (MHCLG), returning to the role after nearly a year.
New prime minister Andy Burnham confirmed Rayner’s appointment to his cabinet on Monday evening. It was also confirmed that Matthew Pennycook would continue as housing minister.
Rayner, also previously deputy prime minister under Sir Keir Starmer, played a key role in the Labour government’s growth and housing strategies following the party’s election win in 2024.
She stepped down in September 2025 after admitting to not paying enough stamp duty on a flat in Hove, East Sussex. Rayner had referred herself to the standards watchdog after reportedly saving £40,000 in stamp duty when buying the £800,000 property by removing her name from the deeds of another property in Greater Manchester, following her divorce in 2023.
“I am delighted to have accepted the position of secretary of state at the Ministry of Housing, Communities and Local Government,” she said on X. “Andy Burnham’s vision of good growth in every postcode demands we build on the foundations we have already laid to bring the change we have promised. I look forward to returning to government with renewed drive and determination to put power back in people’s hands – and hope back in our hearts.”
Her appointment comes after Steve Reed, who stepped in following Rayner’s exit, resigned yesterday.
Pennycook added: “Delighted to remain in post as Housing and Planning Minister and to have been asked by Andy Burnham to attend Cabinet in that role. We’ve made huge strides towards a future where everyone has a secure, decent and affordable home. Time to step things up and see the job through.”
Meanwhile, John Healey, who served as defence secretary between July 2024 and June 2026, has now been appointed as chancellor of the Exchequer, replacing outgoing chancellor Rachel Reeves.
Healey also served as housing minister and minister of state at the Department for Communities and Local Government between June 2007 and May 2010.
“It is the greatest privilege to be appointed chancellor of the Exchequer by the prime minister,” he said on X. “Together, we will build a new economy, build new hope and advance the working people of this country. Time to get on with the job.”
Alex Norris has been appointed lord chancellor and secretary for justice. Between July 2024 and September 2025, he served as parliamentary under-secretary of state at MHCLG.
Vanessa Hale, chief executive of Real Estate:UK, said the new cabinet “blends both experience and continuity”, alongside an “injection of new talent and fresh ideas”.
“We welcome the return of Angela Rayner as housing secretary, with whom we worked very productively in her previous stint, and we look forward to her hitting the ground running and picking up the dialogue about how we get homes built and breathe life back into communities in conjunction with Matthew Pennycook, who stays in role,” she added.
“The appointment of John Healey as chancellor offers stability and a relatively known quantity, which should appeal to the markets and the machinery of government alike.
“That he is also a former housing minister, in an era where delivery challenges are so acute, should be considered an added bonus.”
This view was echoed by Lawrence Turner, director at Boyer, who said Rayner’s return “provides some welcome continuity at an important point for the planning system”.
“The direction of planning reform has largely been established, but the immediate challenge is now delivery and translating policy and legislative reform into adopted local plans and homes on the ground. That will require sustained political leadership, properly resourced local planning authorities and a pragmatic response to the viability challenges, increased build costs and infrastructure constraints affecting the development industry.”
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