Over a third (36%) of DIY investors have stated that their risk appetite has increased since Keir Starmer announced his resignation as Prime Minister, Charles Stanley Direct has found.

Starmer announced his resignation last month, with Andy Burnham set to become Prime Minister, the seventh person to take up the role in the last decade.

Charles Stanley said the political change “appears to have influenced investor sentiment”.

Of the 36% who said their risk appetite has increased since Starmer’s resignation, 10% said their appetite has increased "significantly”", while 26% said it had increased somewhat. This was most pronounced among Gen Z investors (52%), 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% stated their appetite has decreased.

Chief investment analyst at Charles Stanley Direct, Rob Morgan, said that while the political scene has been unsettled over the past decade, in this particular case of leadership change, market and investor reactions have remained "relatively measured".

He concluded: "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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