More than three-quarters of property investors (77%) don’t believe that Labour’s planning reforms will have a positive impact on their business, raising fears for future investment.
A survey by buy-to-let lender Landbay reveals that only 13% think easing planning rules could create more opportunities to buy new-build properties, while just 9% believe planning reforms could lead to more jobs and economic growth – and that demand for rental accommodation could rise, boosting occupancy rates.
Earlier this year, the government announced reforms that promised to boost housebuilding by streamlining planning decisions, give councils powers to set their own planning fees, improve the compulsory purchase process and strengthen development corporations to make it easier to deliver large-scale development.
Rob Stanton, sales and distribution director at Landbay (pictured), reckons that if property investors aren’t convinced planning reform will positively affect their business, we’re in real trouble.
“Landlords are an important stakeholder in the planning system and the wider housing market, driving the conversion of properties to HMOs, refits and extensions – not to mention a chunk of new-build housing,” he says.
“So this level of scepticism and cynicism surrounding proposed reforms to our planning system is absolutely damning.”
When asked if they thought planning reform could help solve the housing crisis, nearly half of landlords quizzed (47%) said reforms alone would not be enough, citing factors such as the ongoing skills shortage in the construction sector, which hinders building at the requisite pace.
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