Prisk, a chartered surveyor by trade, took the position little over a year ago when he replaced Grant Shapps, who was moved to the role of party co-chairman.
The government has renewed its focus on the housing market in the past year but key polices such as the Help to Buy scheme have been run from the Treasury, rather than Prisk’s department.
Prisk, the member of parliament for Hertford and Stortford, said that he was ‘disappointed’ with the decision.
“Been asked to step aside from Housing for a younger generation,” he tweeted. “Disappointing but it’s been a great eleven years as frontbencher.”
Other ministerial changes made today include the appointment of Nicky Morgan to the role of economic secretary to the Treasury and Sajid Javid’s promotion to financial secretary to the Treasury.
In the shadow cabinet, Emma Reynolds has been promoted to shadow housing minister, replacing Harriet Harman’s husband Jack Dromey.
Her previous role was shadow Europe minister and, unlike Dromey, she will attend shadow cabinet meetings.