Majority of property investors unconvinced by proposed changes
Fewer than one in four landlords in the UK believe that planning reform will benefit their businesses, according to new research by specialist buy-to-let lender Landbay.
The survey found that 77% of property investors do not expect the proposed changes to planning regulations to have a positive effect on their buy-to-let operations.
Only 13% of respondents indicated that relaxed planning rules might create more opportunities to acquire new-build properties. Just 9% felt that planning reform could support job creation and economic growth through increased demand for rental accommodation.
“If property investors are not convinced planning reform will positively affect their business, we’re in real trouble,” said Rob Stanton (pictured top), sales and distribution director at Landbay.
“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. So this level of scepticism and cynicism surrounding proposed reforms to our planning system is absolutely damning.”
Nearly half of those surveyed (47%) said that planning reform alone would not resolve the housing crisis, pointing to the persistent shortage of skilled workers in construction as a significant barrier to building new homes at the required rate.
One landlord commented that housebuilding targets were “impossible to achieve” with current level of skills available. “I own and operate a development company and construction company,” he said. “The shortage of trades is very limiting.”
Another described the targets as “unrealistic while insufficient skills are available,” while a further respondent remarked, “the government has been setting new homes targets for years – nothing ever changes.”
For mortgage brokers, widespread landlord scepticism towards planning reform suggests limited growth in buy-to-let lending linked to new-builds or property conversions. Brokers may see fewer opportunities arising from planning changes, as investor demand is unlikely to increase unless broader issues—such as construction skills shortages—are addressed. Staying informed on policy developments and client sentiment will be essential for brokers navigating this uncertain environment.
“As a country, we clearly need planning reform,” Stanton stressed. “The Lower Thames Crossing has cost more than a quarter of a billion pounds just in planning and paperwork – not a single spade in the ground. It has cost us more to plan the crossing than it cost Norway to construct the world’s longest tunnel. HS2 is now the world’s most expensive railway line. The planning application to reopen the old three-mile Portishead railway line is 80,000 pages long – with over 1,000 pages dedicated to bats.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
