The commercial mortgage and bridging lender TAB has called for significant reforms in the planning system and enhanced support for landlords from the next Prime Minister. This push aims to address the challenges faced by the specialist finance sector in funding regeneration projects and increasing housing supply, which are currently hampered by planning delays and restrictive tax policies.
What Planning Reforms Does TAB Propose?
Karen Rodrigues, the sales director at TAB, emphasised the urgent need for a refreshed planning system. She advocates for the introduction of statutory deadlines and increased resources for local authorities. A significant aspect of this reform would be a presumption in favour of converting redundant commercial spaces, which could streamline the approval process for change-of-use applications. This would facilitate the transformation of vacant retail and office units into mixed-use developments, ultimately expediting project delivery.
How Do Planning Delays Impact Bridging Finance?
Rodrigues highlighted that while TAB is capable of providing commercial mortgages quickly, the slow pace of the planning system severely restricts investment opportunities. Delays in planning approvals can stall essential projects, hindering community regeneration and economic growth. The call for reform is not just about easing the process for developers; it is about creating a more vibrant property market that can respond swiftly to changing demands.
What Changes Are Needed for the Private Rented Sector?
In addition to planning reforms, TAB is advocating for a more supportive environment for the private rented sector (PRS). Rodrigues argues that landlords play an important role in meeting the housing demand, especially as the country grapples with a shortage of social housing. She criticises the government’s historical approach of treating landlords primarily as a source of tax revenue, calling for a reduction in red tape and a reversal of punitive fiscal policies. Key proposals include reinstating mortgage interest tax relief for individual landlords, scrapping the stamp duty surcharge, and bringing back the Wear and Tear Allowance.
What This Means for Landlords and Investors in Bridging Finance
The proposed reforms could significantly impact landlords and property investors by creating a more conducive environment for investment and development. By addressing planning delays and reducing the financial burdens associated with property ownership, the government could stimulate activity in the property market. This would not only benefit landlords but also enhance the availability of rental properties for tenants, ultimately supporting the broader housing market. Investors should keep an eye on the upcoming government policies and reforms, as these changes could reshape the market of property investment in the UK.
Frequently asked questions
What specific reforms does TAB want for landlords?
TAB is advocating for reinstating mortgage interest tax relief, scrapping the stamp duty surcharge, and reviving the Wear and Tear Allowance to support landlords.
How do planning delays affect the housing supply?
Planning delays slow down the approval of development projects, which limits the supply of new housing and hampers community regeneration efforts.