The commercial mortgage and bridging finance sector is calling for urgent planning reforms and increased support for landlords from the next Prime Minister. TAB, a commercial mortgage and bridging lender, highlights that the current planning system is hindering investment in regeneration projects and housing supply, which is critical for economic growth.
What Planning Reforms Does TAB Propose?
Karen Rodrigues, sales director at TAB, emphasises the need for a refreshed planning system that includes statutory deadlines and improved local authority resources. She argues for a presumption in favour of converting redundant commercial spaces, which would streamline the approval process for change-of-use applications. This approach aims to facilitate the transformation of vacant retail and office units into mixed-use developments, thereby accelerating regeneration efforts.
How Do Current Planning Delays Affect Investors in Bridging Finance?
Rodrigues notes that while TAB is able to deliver commercial mortgages swiftly, the planning system operates at a much slower pace. This discrepancy creates significant challenges for businesses and investors who rely on timely approvals to move forward with their projects. The proposed planning reforms are seen as essential to unlock potential developments, rejuvenate communities, and stimulate economic activity.
What Changes Are Needed for the Private Rented Sector?
In addition to planning reforms, TAB argues that the private rented sector (PRS) must receive more government support. Rodrigues points out that landlords play a vital role in addressing housing demand, particularly in the absence of adequate social housing. She criticises the current government approach, which has treated landlords primarily as a source of tax revenue, and calls for the removal of burdensome regulations and fiscal measures that negatively impact landlords.
What This Means for Landlords and Property Investors
The proposed reforms could significantly benefit landlords and property investors by creating a more conducive environment for investment. By reinstating mortgage interest tax relief and scrapping the stamp duty surcharge, the government could alleviate some of the financial pressures faced by landlords. Furthermore, reforms to business rates could lower operational costs for independent retailers and hospitality businesses, which would support tenants in semi-commercial properties and contribute to the vitality of high streets.
Bridging Finance: How Can It Help Investors Navigate Changes?
Bridging finance can provide a quick solution for investors looking to capitalise on new opportunities arising from these proposed reforms. With the ability to secure funds rapidly, bridging loans can allow investors to take advantage of properties that may soon be eligible for conversion or redevelopment, ensuring they remain competitive in a changing market. For more information on how bridging finance works, check our bridging finance guide.
Frequently asked questions
What specific tax reforms does TAB suggest for landlords?
TAB suggests reinstating mortgage interest tax relief for individual landlords, scrapping the stamp duty surcharge, and bringing back the Wear and Tear Allowance to ease the financial burden on landlords.
How might planning reforms impact the housing market?
Planning reforms could accelerate the conversion of vacant commercial properties into residential or mixed-use developments, thereby increasing housing supply and addressing demand more effectively.