The commercial mortgage and bridging lender TAB has called for urgent planning reforms and enhanced support for landlords from the next Prime Minister. With the specialist finance sector poised to contribute significantly to housing supply and regeneration projects, TAB warns that current planning delays and tax policies are stifling investment in commercial and mixed-use properties.
What planning reforms does TAB propose for bridging finance?
Karen Rodrigues, sales director at TAB, emphasised the need for a revamped planning system that includes statutory deadlines and increased resources for local authorities. She advocates for a presumption in favour of converting redundant commercial spaces, which would expedite change-of-use applications. This would facilitate the transformation of vacant retail and office units into mixed-use developments, ultimately speeding up project approvals.
How do current planning delays impact bridging finance and property investment?
Rodrigues highlights that while TAB is capable of delivering commercial mortgages at a rapid pace, the planning system is lagging significantly. This slow pace hampers businesses and investors who rely on timely approvals to initiate projects. By reforming the planning system, the government could unlock potential developments, stimulate community regeneration, and support broader economic growth.
What changes are needed for the private rented sector?
In addition to planning reforms, TAB argues for a reassessment of the private rented sector (PRS). Rodrigues points out that landlords play an important role in addressing housing demand, especially in the absence of sufficient social housing. She criticises past government policies that have treated landlords primarily as sources of tax revenue and calls for the removal of excessive regulations and fiscal burdens that have negatively impacted landlords.
What this means for landlords and investors in bridging finance
For landlords and property investors, the proposed reforms could significantly alter the UK property market. The reinstatement of mortgage interest tax relief, removal of the stamp duty surcharge, and the revival of the Wear and Tear Allowance are all measures that could ease financial pressures on landlords. Additionally, reducing business rates for independent retailers and hospitality businesses would support high streets and tenants in semi-commercial properties. Ultimately, these changes could support a more conducive environment for investment and development in the property sector.
