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 specialist finance lender, asserts that current planning delays and tax policies hinder investment in commercial and mixed-use property markets, thereby affecting housing supply and regeneration projects.
TL;DR: TAB emphasizes the need for planning reform to expedite project approvals; landlords are urged to receive more support to meet housing demand.
What Planning Reforms Are Needed for Bridging Finance?
Karen Rodrigues, sales director at TAB, has highlighted that the next Prime Minister should prioritize a refreshed planning system. She advocates for the introduction of statutory deadlines and improved local authority resources to facilitate quicker approvals for change-of-use applications. This would enable the conversion of vacant retail and office spaces into mixed-use developments, thereby addressing the urgent need for housing and revitalizing communities.
How Do Current Policies Affect Landlords and Bridging Finance?
Rodrigues points out that landlords play a vital role in addressing housing shortages, particularly as the country grapples with a lack of social housing. She criticizes successive governments for treating private landlords primarily as tax revenue sources rather than partners in solving housing issues. TAB 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. These changes would alleviate some financial burdens on landlords, encouraging them to invest in the housing market.
What Changes to Business Rates Are Suggested?
In addition to planning reforms, TAB advocates for changes to business rates, which they believe are a significant obstacle for high streets and mixed-use investments. Rodrigues suggests that lowering business rates for independent retailers and hospitality businesses could stimulate local economies and support tenants in semi-commercial properties. This approach aims to rejuvenate high streets and create a more favorable environment for local businesses.
What This Means for Property Investors and Bridging Finance
The proposed reforms could significantly impact property investors and landlords by creating a more conducive environment for development and investment. By streamlining the planning process and reducing tax burdens, the government could encourage more activity in the property market. This would not only benefit landlords but also enhance the availability of housing options for renters, ultimately supporting economic growth and community regeneration. For more information on how bridging finance can help in property investments, check our bridging finance guide.
Frequently asked questions
What is bridging finance?
Bridging finance is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing one. It is commonly used in property transactions to secure immediate funding.
How can I access bridging finance?
Accessing bridging finance typically involves working with a lender who specializes in this type of loan. Borrowers should prepare necessary documentation and demonstrate their ability to repay the loan, often through the sale of an existing property or other means.