Rayner, who has also stepped down as deputy prime minister, resigned last week following the admission that she failed to pay the correct stamp duty on a second property she owned.

The prime minister’s ethics adviser Sir Laurie Magnus concluded that Rayner “cannot be considered to have met the “highest possible standards of proper conduct””, thus breaking the ministerial code.

Writing to the PM, Rayner said that she deeply regretted her decision “to not seek additional specialist tax advice” and emphasised that she takes “full responsibility for this error”.

Her replacement Reed had previously been secretary for environment, food and rural affairs since September 2024.

He was elected as MP for Streatham and Croydon North in the 2024 general election.

In a statement on X, formerly known as Twitter, Reed said: “It’s a huge honour to be appointed Secretary of State for Housing, Communities and Local Government by [Sir Keir Starmer].

•   The Finance Professional Show 2024: The Video
•   Autumn Budget 2025: what needs to be done for planning a year later?
•   Govt unlocks almost 100,000 homes with accelerator

“Together, we will get Britain building and create a future where everyone has access to affordable, safe homes and thriving communities.”

In the wider cabinet reshuffle, minister for housing and planning Matthew Pennycook retained his role.

Posting on X that he was “delighted” to remain in the role, he added: “Lots done, and lots more in the pipeline as we continue the work to tackle the housing crisis and ensure everyone has a safe, secure, decent and affordable home.”

Commenting on his appointment, the Federation of Master Builders (FMB) have urged Reed to focus on delivery.

“The former Housing Secretary made several high-profile announcements aimed at getting Britain building again, but the sad fact is that the number of new homes has fallen short of the 300,000 that are needed each year,” said Brian Berry, CEO at the FMB.

“Support for first time buyers is non-existent and the proposed planning reforms to speed up development have yet to materialise.”