Keir Starmer’s downfall has been branded an inevitability by an expert at property group Knight Frank.
Tom Bill, head of UK residential research at the real estate consultancy, responded to the Labour Party coming third behind Reform and the Green Party in last week’s by-election on Thursday.
The defeat took place in a seat viewed as a Labour heartland, which is Gorton and Denton, southeast of Manchester.
Bill said: “Last week’s by-election result, where Labour came third behind Reform and the Green Party, makes the Prime Minister’s downfall look almost inevitable.
“Financial markets initially shrugged off the result, but appeasing Green Party voters and the bond market won’t be an easy task for the government, whoever is in Number 10.”
Helen Thomas, chief executive of economic consultancy Blonde Money, suggested a cabinet reshuffle could be a way of Labour shifting itself to the left.
She said: “The loss of a heartland safe seat to a more progressive party will be too hard for some to take.”
Starmer has repeatedly failed to appease left-leaning members of his party, who accuse him of watering down environmental policies, while his handling of the Israel-Gaza conflict has also drawn criticism.
Political uncertainty and the 5% stamp duty surcharge are keeping a lid on Prime Central London, where prices are 22% below their peak in August 2015.
Bill added: “Nobody has been talking about this week’s Spring Statement.
“There has been no speculation about which taxes may rise, and the Chancellor appears keen to make it a non-event.
“While we don’t have to worry about what the Chancellor will do this week, we do have to worry about who will be making the decisions later this year.”
