Within hours of her appointment, Rayner posted on X that she was “delighted” to accept the position.

The former deputy prime minister added: “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.”

On his first day as prime minister, Burnham sacked Steve Reed as housing secretary.

In a statement posted on X, Reed wrote that he was proud of his accomplishments during his team leading the Ministry for Housing, Communities and Local Government.

He added: “Keir Starmer showed loyalty to me by appointing me to his cabinet — I make no apology for returning that loyalty.”

However, Minister for Housing and Planning, Matthew Pennycook, has remained in his post.

Elsewhere, Burnham made John Healey — who served as housing minister under Gordon Brown — the new chancellor.

According to some, both the appointments of Rayner and Healey signal Burnham’s intent to put housing central to his government’s agenda.

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“The appointment of Angela Rayner as housing secretary and John Healey as chancellor places housing at the heart of the Burnham government in a way not seen for decades,” said Anthony Codling, analyst at investment bank RBC Europe.

“Critically, [Rayner] now has a chancellor who has been heavily involved in and supportive of housebuilding throughout his career.

“The combination of a housing secretary who has already delivered planning reform and a chancellor who instinctively backs housebuilding is a positive start for housebuilders under Burnham's tenure as prime minister, in our view.”

Vanessa Hale, CEO at Real Estate:UK, also welcomed both appointments to the cabinet and applauded their housing experience.

However, she added: “Regardless of the new team to confront them, the same challenges remain both for the economy and for real estate in particular.

“The need to grow the economy through sustained investment, both public and private, in those areas most likely to deliver growth, addressing the development viability challenges stymying new homes and commercial space, generating consumer and occupier confidence, and not introducing new policy or legislation liable to have a detrimental impact upon the industry. In this we wish them well.”