The commercial mortgage and bridging finance sector is urging the next Prime Minister to prioritise planning reform and support for landlords. With the current system hindering regeneration projects and housing supply, stakeholders believe that practical changes are vital for economic growth and community revitalisation.
What Planning Reforms Are Needed?
Industry leaders are calling for a refreshed planning system that includes statutory deadlines for approvals, increased resources for local authorities, and a presumption in favour of converting redundant commercial spaces. Karen Rodrigues, sales director at TAB, emphasises that the current planning processes are excessively slow, causing delays that hinder investment and project initiation. By streamlining the approval process for change-of-use applications, particularly for vacant retail and office units, the government could facilitate quicker transitions to mixed-use developments.
How Do Planning Delays Affect Bridging Finance?
Bridging finance is designed to provide quick funding solutions for property investors and developers. However, when planning delays occur, these financial products can become less effective. Investors often face increased holding costs and missed opportunities due to slow approvals. The call for planning reform highlights the need for a more responsive system that allows bridging finance to fulfil its potential in supporting rapid development and regeneration.
What Should Landlords Expect from Future Policies?
Landlords are being urged to advocate for a supportive environment that acknowledges their role in addressing housing shortages. Rodrigues argues that the next government must reverse punitive tax policies that have burdened private landlords. Proposed reforms include reinstating mortgage interest tax relief, eliminating the stamp duty surcharge, and reintroducing the Wear and Tear Allowance. These changes aim to relieve financial pressures on landlords, enabling them to contribute more effectively to the housing market.
What This Means for Property Investors
For property investors, the proposed changes could significantly alter the investment market. A reformed planning process would not only expedite project approvals but also enhance the attractiveness of mixed-use developments. Additionally, if tax reliefs are reinstated, investors may find it easier to manage costs and improve profitability. The emphasis on supporting independent retailers and hospitality businesses through business rate reforms could further revitalise high streets, creating more opportunities for investment in semi-commercial properties.
Frequently asked questions
What are the key benefits of bridging finance?
Bridging finance offers quick access to funds, making it ideal for property investors needing to complete transactions swiftly. It can be used for various purposes, including purchasing properties, refurbishing, or covering cash flow gaps.
How can I keep up with changes in property regulations?
Staying informed about property regulations involves regularly checking government announcements, industry publications, and resources like the bridging finance guide. Engaging with professional networks can also provide valuable insights into upcoming changes.