Specialist lender TAB has urged the next Prime Minister to prioritise planning reform, support landlords and overhaul property taxation to unlock investment, regeneration and housing delivery.
The commercial mortgage and bridging lender said the specialist finance sector could play a greater role in funding regeneration projects and boosting housing supply, but warned that planning delays and tax policies were restricting investment across commercial and mixed-use property markets.
Karen Rodrigues, sales director at TAB, said she wanted the next Prime Minister to focus on practical reforms that would encourage development and support property investors.
Rodrigues says: “I care very little about the politics and the personalities involved in the race to replace Sir Keir Starmer. But I know what I would like to see the next occupant of Number 10 deliver.
“The biggest issue is planning reform. The next PM needs to introduce a refreshed planning system, with statutory deadlines, greater local authority resourcing and a presumption in favour of converting redundant commercial space. That would facilitate faster approval of change-of-use applications and make it easier to convert vacant retail and office units into mixed-use schemes.
“While we are delivering commercial mortgages at bridging speed, the planning system is moving at a snail’s pace – and far too slowly for the businesses and investors it is supposed to be serving. Planning reform would help unlock projects, regenerate communities and support economic growth.”
TAB said reform of the private rented sector should also be a priority, arguing that landlords continue to play an important role in meeting housing demand.
Rodrigues says: “The next government must support the private rented sector; until we start delivering more social housing, the country needs the PRS. Despite this, successive governments have treated private landlords as nothing more than a source of tax revenue. We need to strip out decades of red tape and housing policy intervention and reverse damaging fiscal attacks on landlords.
“Let’s reinstate mortgage interest tax relief for individual landlords.”
“Let’s reinstate mortgage interest tax relief for individual landlords. Let’s scrap the stamp duty surcharge. Let’s bring back the Wear and Tear Allowance.”
She also called for changes to business rates, arguing that lower costs for independent retailers and hospitality businesses would help support high streets and the tenants occupying semi-commercial properties.
Rodrigues says: “We ought to reform business rates, which remain a major drag on high streets and mixed-use investments. Policies that reduce rates for independent retailers, hospitality businesses and local service providers would support tenants occupying many semi-commercial properties.
“We want to do our bit to rejuvenate the high street, but we need the next Prime Minister to create the conditions in which local businesses can thrive.
“Stamp duty must be reformed.”
“Stamp duty must be reformed. This could include lower SDLT rates on commercial and mixed-use acquisitions, or reliefs for bringing vacant buildings back into use. The property market suffers from too much transactional friction.
“Too often, otherwise sensible deals fail because taxes make them uneconomic. Property investors, landlords and business owners need a system that encourages activity rather than discourages it.
“At TAB, we are focused on bringing momentum to lending, but stamp duty is doing the opposite – acting as a brake on transactions, investment and regeneration. Reform would support a healthier property market.”
Rodrigues said a long-term commitment to housing delivery would also benefit the specialist lending market by increasing demand for development and refurbishment finance.
She says: “Finally, I hope the next government focuses on long-term housing delivery. This may sound like a purely residential issue, but it directly affects specialist property finance, too.
“A sustained programme of housebuilding creates demand for land acquisition finance, refurbishment finance, commercial-to-residential conversions and mixed-use redevelopment. The entire specialist lending ecosystem tends to benefit when housing output rises.”
