The commercial mortgage and bridging lender TAB is urging the next Prime Minister to implement planning reforms and support for landlords in a bid to stimulate housing supply and regeneration projects. With the current planning system seen as a barrier to investment in commercial and mixed-use properties, TAB’s sales director, Karen Rodrigues, highlights the urgent need for practical changes that can facilitate development.
What Planning Reforms Are Needed?
According to Rodrigues, a refreshed planning system is essential for expediting development. She calls for the introduction of statutory deadlines for planning applications, increased resources for local authorities, and a presumption in favour of converting redundant commercial spaces. This would streamline the approval process for change-of-use applications, allowing vacant retail and office units to be transformed into mixed-use schemes more efficiently.
How Do Planning Delays Affect Investors?
The current slow pace of the planning system is a significant hurdle for businesses and investors. While TAB is capable of delivering commercial mortgages at a rapid pace, the lengthy planning process hampers potential projects. Rodrigues argues that reforming the planning system would not only unlock stalled projects but also contribute to community regeneration and economic growth, making it a pressing issue for property investors.
What Support Should Landlords Expect?
Landlords play a pivotal role in addressing housing demand, and TAB believes that the next government should prioritise support for the private rented sector (PRS). Rodrigues criticises past administrations for treating landlords primarily as a source of tax revenue rather than as essential contributors to the housing market. She calls for the reinstatement of mortgage interest tax relief for individual landlords, the removal of the stamp duty surcharge, and the reintroduction of the Wear and Tear Allowance.
What This Means for Bridging Finance and Investors
For property investors and landlords, these proposed reforms could significantly alter the market of the UK property market. By reducing the financial burdens associated with taxation and streamlining the planning process, the government could encourage more investment in the PRS and commercial sectors. This support is critical, especially as the demand for housing continues to rise. Investors should keep an eye on the developments in government policy as the next Prime Minister takes office, as these changes could present new opportunities for growth and investment in bridging finance.
Frequently asked questions
What are the main concerns regarding the current planning system?
The current planning system is seen as slow and inefficient, causing delays that hinder investment in commercial and mixed-use properties. TAB advocates for reforms to expedite the process.
How could reforms benefit landlords in the UK?
Reforms could reinstate tax reliefs and reduce financial burdens, making it easier for landlords to operate and invest in the private rented sector, thus addressing housing demand more effectively.