The commercial mortgage and bridging finance sector is calling for significant planning reforms and support for landlords from the next Prime Minister. TAB, a specialist finance lender, argues that current planning delays and tax policies hinder investment in both commercial and mixed-use properties, ultimately impacting housing supply and regeneration efforts.
What Planning Reforms are Needed for Bridging Finance?
Karen Rodrigues, sales director at TAB, emphasizes the necessity of a reformed planning system that includes statutory deadlines and increased local authority resources. She believes the next Prime Minister should prioritize these reforms to expedite the approval of change-of-use applications. This would allow for a smoother transition of vacant retail and office spaces into mixed-use developments, which are important for community regeneration.
How Do Tax Policies Affect Landlords in Bridging Finance?
Rodrigues points out that the private rented sector (PRS) plays a vital role in meeting housing demand, especially as social housing delivery lags. She criticizes past governments for treating landlords primarily as tax revenue sources and calls for the reinstatement of mortgage interest tax relief for individual landlords, the removal of the stamp duty surcharge, and the revival of the Wear and Tear Allowance. These changes could alleviate financial pressures on landlords and encourage more investment in rental properties.
What Changes are Suggested for Business Rates?
In addition to planning and tax reforms, Rodrigues advocates for changes to business rates. She argues that reducing costs for independent retailers and hospitality businesses would not only support high streets but also benefit tenants in semi-commercial properties. By reforming business rates, the government could create a more favorable environment for local businesses, which is essential for revitalizing high streets.
What This Means for Landlords and Investors in Bridging Finance
The proposed reforms could significantly impact landlords and investors in the UK property market. By streamlining the planning process and reducing tax burdens, the government could stimulate investment in both residential and commercial properties. This would not only help address the housing crisis but also promote economic growth through enhanced regeneration projects. Landlords could find themselves in a more supportive environment, encouraging them to invest in and improve their properties, ultimately benefiting tenants and communities. For those interested in exploring financing options, bridging finance could provide the necessary capital to facilitate these investments.
Frequently Asked Questions
What are the potential benefits of planning reform for property investors?
Planning reform could lead to faster approvals for development projects, making it easier for investors to convert vacant properties into profitable mixed-use schemes, thus enhancing investment opportunities.
How might changes to tax policies impact landlords?
Reinstating mortgage interest tax relief and removing the stamp duty surcharge could reduce financial burdens on landlords, encouraging them to invest more in rental properties and improve housing availability.