Brokers could in line to benefit from government proposals to relax the planning rules for homes and business.
Specialist lender Blemain Group argues that the relaxing of planning rules will lead to an increase in the number of people in the UK looking to extend both homes and business premises, resulting in increased business for the specialist lending industry.
Secured or commercial loans are predicted to be the most viable means for applicants to fund their projects but Blemain says there may also be increased interest in bridging loans.
Blemain Group sales and marketing director Gary Bailey says: “Whilst this move will be welcomed by the industry, the question is how will people fund these projects? Most people might consider going to their current mortgage provider, but with remortgages and business loans becoming increasingly difficult to secure, this might not be a workable option.
“With traditional lenders being much more selective about who they lend to, be it a credit card or personal loan and especially business loans, property owners will need to consider alternative sources of funding. This is especially the case for those who might not meet with a lender’s strict criteria.”
The Communities and Housing department commissioned a report, entitled ‘Review of the barriers to institutional investment in private rented homes’, in August, which proposed means to encourage investment by removing of red tape.
Government chief planner Steve Quartermain confirmed he had written to English planning authorities last week clarifying new provisions that allow applicants a temporary one-year extension to the time limits for implementing a planning permission.