Following this, she will formally take up the role of prime minister, replacing Boris Johnson.

In a statement made on Twitter, Truss said she was honoured to be elected leader of the Conservative party.

“I will take bold action to get all of us through these tough times, grow our economy, and unleash the United Kingdom’s potential,” she added.

Industry reacts to Liz Truss becoming prime minister

This section will be constantly updated throughout the day — check regularly for more comments from industry experts

3pm

Brian Berry, CEO at the FMB:

“A national retrofit plan needs to be treated as an urgent infrastructure priority because of the benefits it can bring to both consumers and business. To succeed, it must prioritise consumer information on what can be done to make existing homes better insulated; provide a range of financial incentives, such as a VAT cut, to help householders start retrofitting; and commit to work with the building industry to ensure there is a supply of competent, local installers to do the work.

“A national retrofit strategy also offers the opportunity to create thousands of new jobs and deliver growth in every village, town, and city.

"Truss has a once in a lifetime opportunity to transform our existing homes to help ensure everyone has a place they can afford to heat.

"The energy crisis needs a green revolution, but this requires bold leadership, so I’m looking to Truss to deliver.”

Caroline Gumble, CEO at CIOB:

“We want to see the new PM continue the government’s existing agendas on levelling up and net zero, both of which can make a positive difference to what we’re sure will be their number one priority, the cost of living crisis.

"The levelling up agenda provides significant opportunities for the construction sector, through local job creation and stability, while property retrofit schemes to improve energy efficiency, for example, will further boost the sector and go some way to helping residents mitigate rising energy costs.  

“In tandem, we would like to see the PM appoint a cabinet that will work meaningfully with the construction industry and professional bodies to understand and alleviate pressures on the built environment sector.

"The appointment of housing and construction ministers for the long-term will go a long way in helping improve the consistency and collaboration that the industry desperately needs and strengthen the excellent collaboration that has been achieved through the Construction Leadership Council.” 

Mark Gibson, business development director at RSK Group: 

“The UK needs a detailed net zero investment plan, providing clear focus on where financing is needed, how much, when and what it will achieve.

•   New brokerage Elan Property Finance enters market to provide 'friction-free finance'
•   Specialist finance industry reacts to Boris Johnson resignation and cabinet shake-up
•   Industry reacts to BoE interest rate rising to 1.75%

“How can the government facilitate those investments? Part of the answer lies in producing a detailed investment plan: one that shows targets by sector and their capital requirements, the incentives available and policy levers that can be used to mobilise investment.”

1pm

Simon Cox, managing director at Walter Cooper:

“When it comes to housing, resolving the issues in planning needs to be one of the top items on the next PM’s agenda, and that will mean making some unpopular decisions. 

“Housing plays a major part in supporting the economy and, as we head into a predicted recession, this will prove more important than ever. 

“I’d therefore implore the new PM to work with those in the industry to provide support in promoting an ‘open for housebuilding’ agenda. 

“Truss may have pledged her commitment to removing planning restrictions in an attempt to boost housebuilding, but in abandoning the government target of building 300,000 houses a year, will her so-called investment zones ever really come to fruition? I’m not sure, but the fact of the matter is, as prices continue to rise due to a lack of supply, something needs to be done to increase the number of houses built in this country before homeownership becomes further out of reach for all but a select few.”

Simon Peacock, head of UK regions at JLL: 

“More so than for any other prime minister in living memory, there’s no time to waste for Truss. 

“Businesses across all of the UK’s regions are keen to see meaningful progress made on this government’s levelling up and net zero commitments, especially with a potential recession looming.  

“Devolution, spending on infrastructure and creating clusters of businesses with specialisms in green industries are all high up the wishlist for businesses, but they also want to see more engagement with local leaders to ensure their voices are being heard. 

“A new government means a fresh start, but action is needed sooner rather than later.” 

Nick Sanderson, CEO at Audley Group:

“Our new PM will have a lot on her plate, but I hope her vocal commitments to social care are not forgotten. 

“She is right that focusing on social care will free up space in the NHS, but wrong to think it is only money that can achieve this laudable aim — housing, health, and social care should all go hand in hand to look at prevention, rather than cure. 

“The more age-appropriate housing with care and wellbeing facilities on site that we build, the lighter the pressure on the system. 

“I urge Truss and her new cabinet to activate the promised task force on housing for older people and benefit the coffers of the Treasury by focusing on real solutions that need collaboration, not cost.”

Frédérique Carrier, head of investment strategy at RBC Wealth Management:

“PM Truss will likely be less keen to balance the country’s books than former Chancellor Sunak would have been, and interest rates are likely to increase further during her premiership. 

“Truss seems less fiscally conservative than Sunak; she now seems to be in favour of supporting the economy other than through tax cuts. 

“This ultimately means higher borrowing and in turn, it means the Bank of England could be forced to increase rates further than otherwise would have been the case. 

“For now, we expect the Bank of England to deliver two 50bps rate hikes at its meetings on 15th September and 3rd November, as economic data has not deteriorated sufficiently yet to prevent it from being hawkish. 

“A larger 75bps rise is possible at the November meeting, but will likely depend on whether inflation surprises on the upside and the fiscal plans of the new UK government.  

“Truss is less likely to repair the trading relationship between the UK and the EU than Sunak might have been — she broke off talks with the EU regarding the Northern Ireland protocol earlier this year, preferring to take unilateral action.

“Such a hard stance on this issue could ultimately lead to a trade war with a region which remains the UK’s main export market; this would be problematic, given the already weaker UK economy.”