0_9036 We propose a novel mechanism for a nonequilibrium phase transition in a U (1)-broken phase of an electron-hole-photon system, from a Bose-Einstein condensate of polaritons to a photon laser, induced by the non-Hermitian nature of the condensate. We show that a (uniform) steady state of the condensate can always be classified into two types, namely, arising either from lower or upper-branch polaritons. We prove (for a general model) and demonstrate (for a particular model of polaritons) that an exceptional point where the two types coalesce marks the end point of a first-order-like phase boundary between the two types, similar to a critical point in a liquid-gas phase transition. We discuss how this generalises into non-reciprocal classical systems.