More than a third (36%) of DIY investors said their risk appetite has increased since Keir Starmer announced his resignation as prime minister, according to research from Charles Stanley Direct.
Starmer announced his resignation on 22 June 2026. Andy Burnham is set to take over as Labour leader after the number of nominations he received made it impossible for another candidate to challenge him. Once confirmed, he will become the UK's seventh prime minister in a decade.
Risk appetite refers to an investor's willingness to accept higher levels of volatility in pursuit of potentially greater returns, typically through more exposure to growth-oriented assets such as equities, rather than more defensive holdings like bonds.
Of the 36% who reported an increase in risk appetite, 10% said it had increased significantly and 26% said it had increased somewhat. The shift was most pronounced among Gen Z investors, of whom 52% reported an increase, followed by 50% of Millennials. The majority of respondents (55%) said the 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, said the political scene in the UK had been unsettled over the past decade and that market and investor reactions to this leadership change had 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," he said.
"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."
Morgan added that most investors had remained unchanged in their approach, continuing 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," he said.
"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."