The commercial mortgage and bridging finance sector is urging the next Prime Minister to implement significant planning reforms and support for landlords. These changes are seen as essential to boost housing supply and facilitate regeneration projects across the UK.
What planning reforms are being proposed?
Industry leaders are advocating for a comprehensive overhaul of the planning system. Key suggestions include establishing statutory deadlines for planning approvals, increasing resources for local authorities, and promoting the conversion of vacant commercial spaces into residential units. The aim is to expedite the approval process for change-of-use applications, which would enable quicker transformation of empty retail and office properties into mixed-use developments.
How will these reforms impact the property market?
With the current planning system described as sluggish, the proposed reforms could significantly accelerate project timelines. This would allow businesses and investors to move forward with developments that are important for community regeneration and economic growth. By streamlining the planning process, the government could unlock much-needed housing supply, addressing the ongoing housing crisis.
What support is needed for landlords?
The private rented sector (PRS) is highlighted as a vital component in meeting housing demand. Advocates are calling for the next government to support landlords, who have been viewed primarily as revenue sources through taxation. Proposed measures include reinstating mortgage interest tax relief for individual landlords, abolishing the stamp duty surcharge, and reintroducing the Wear and Tear Allowance. Such changes aim to alleviate the financial burdens on landlords, encouraging them to invest in and maintain rental properties.
What this means for landlords and investors in bridging finance
For landlords, the proposed reforms and support measures could lead to increased profitability and reduced operational costs. By reinstating tax reliefs and simplifying regulations, landlords may find it easier to manage their properties and invest in necessary upgrades. Investors in the commercial and mixed-use property markets could see improved conditions for transactions, as proposed changes to stamp duty and business rates would reduce the financial friction associated with property deals. This could stimulate more activity in the market, benefiting both landlords and tenants.
Frequently asked questions
What are the main benefits of planning reform?
Planning reform aims to speed up the approval process for developments, enabling quicker regeneration of communities and addressing housing shortages. It also seeks to facilitate the conversion of vacant commercial properties into residential units.
How will changes to tax policies affect landlords?
Changes to tax policies, such as reinstating mortgage interest tax relief and scrapping the stamp duty surcharge, would reduce financial burdens on landlords, encouraging them to invest more in their properties and contribute to the housing supply.