The commercial mortgage and bridging finance sectors are calling for urgent reforms to planning policies and landlord support from the next Prime Minister. Industry leaders argue that these changes are essential to boost housing supply and facilitate regeneration projects across the UK.
What Planning Reforms Are Being Proposed?
Industry experts, including Karen Rodrigues, sales director at TAB, are advocating for a revamped planning system that includes statutory deadlines and increased resources for local authorities. Rodrigues emphasises the need for a presumption in favour of converting redundant commercial spaces into residential units. This approach aims to expedite change-of-use applications, making it easier to transform vacant retail and office units into mixed-use developments.
Why Is Planning Reform Important for Bridging Finance?
The current planning system is perceived as slow and cumbersome, often hindering the progress of essential projects. Rodrigues points out that while bridging finance can be delivered quickly, the planning process is lagging significantly. By reforming the planning system, the government could unlock numerous projects, stimulate community regeneration, and support broader economic growth.
How Will Landlord Support Impact the Housing Market?
Support for private landlords is another critical area highlighted by industry leaders. The private rented sector (PRS) plays a vital role in addressing housing demand, especially as social housing supply remains insufficient. Rodrigues argues that the government has historically viewed landlords primarily as a source of tax revenue, which has stifled investment in the sector. Key proposals include reinstating mortgage interest tax relief for individual landlords, eliminating the stamp duty surcharge, and reviving the Wear and Tear Allowance.
What This Means for Property Investors and Bridging Finance
For property investors and landlords, these proposed reforms could significantly alter the investment market. By reducing the tax burden and streamlining the planning process, the government could create a more conducive environment for investment in both residential and commercial properties. This would not only benefit landlords but also enhance the overall housing supply, addressing the pressing demand in the market. Investors should keep an eye on how these reforms could affect bridging loan rates and overall financing options.
Frequently Asked Questions
What are the main challenges facing landlords today?
Landlords are currently facing challenges such as high taxation, regulatory burdens, and a slow planning process that hampers their ability to invest and adapt properties to meet market demands.
How can bridging finance help in property development?
Bridging finance provides quick access to funds, enabling property developers to seize opportunities and complete projects without the lengthy delays associated with traditional financing methods.