Following his resignation announcement on 22 June 2026, Sir Keir Starmer's departure from Downing Street will see the UK welcome its seventh Prime Minister in a decade. While the Labour Party has been selecting a new leader – with Andy Burnham expected to take over – the political change appears to have influenced investor sentiment.
Risk appetite refers to an investor's willingness to accept higher levels of investment risk in pursuit of potentially greater returns, typically through greater exposure to growth-oriented assets such as equities rather than more defensive holdings.
For 36% of DIY investors, their risk appetite has increased since Starmer's resignation announcement. Ten per cent said their risk appetite had increased significantly, while for 26% it had increased somewhat. This was most pronounced among Gen Z investors, with 52% saying their risk appetite had increased, followed by Millennials (50%).
However, the majority (55%) said the Prime Minister's resignation had not affected their attitude towards risk at all, while 9% said their risk appetite had decreased.
Rob Morgan, Chief Investment Analyst at Charles Stanley Direct, part of Raymond James, comments: "The political scene in the UK has been unsettled over the past decade. In this particular case of leadership change, market and investor reactions have remained relatively measured.
"While some investors report a greater willingness to take risk, this should be viewed primarily as a reflection of broader sentiment rather than a clear shift in investment behaviour. Political change can sometimes be perceived as creating new opportunities or a more favourable backdrop for economic growth, which may explain why some investors feel more confident about taking on additional investment risk.
"However, our research shows that most investors have remained unchanged in their approach. Investors have largely continued to diversify their portfolios and focus on long-term objectives rather than making significant changes based on short-term political developments.
"While a new Prime Minister may bring changes in fiscal policy, marked changes to taxation or other policies affecting personal finances rarely happen overnight and usually come with a long lead-in time. Any shifts in portfolio decisions should be made rationally and there is likely plenty of time to assess any consequences, good or bad, that fall out of a change in political leadership. For those who are unsure, speaking to a financial adviser can help in making informed decisions that suit their personal circumstances."
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