Business Rate Relief, Planning Reform & Commercial Property Finance: What to Watch Post-Budget
For commercial property owners, investors and developers, the Budget can either open new doors or make things considerably more expensive. This year, all eyes are on business rates and planning reform - two topics that could have a direct impact on how easily property deals get financed.
The Current Landscape
The commercial property sector has faced a perfect storm of higher borrowing costs, tighter valuations and shifting tenant demand. Even so, investor appetite remains, especially for industrial, logistics and mixed-use assets. The question is: will the Budget make property finance easier or harder to access?
What the Budget Might Deliver
Business rate relief: Rumours point to extended relief for smaller businesses and potential revaluations for commercial properties. This could improve cashflow for some but hurt valuations in others.
Planning reform: The government continues to talk about streamlining planning permissions, particularly for commercial conversions and mixed-use developments. Any real progress here could unlock financing and make projects more viable.
Infrastructure investment: Additional funding for local regeneration could boost commercial demand in certain regions - especially for developers positioned to move quickly.
Why It Matters for Finance
Lenders base their appetite and valuations on predictable income and clear development potential. If planning becomes simpler and rates more manageable, we could see renewed confidence in commercial lending. On the other hand, uncertainty around business rates or land-use policy can make underwriting riskier, which typically means tighter lending criteria.
The Otium Partners View
Now’s the time to review your portfolio, assess refinancing opportunities and prepare for post-Budget shifts in valuation and demand. Our team helps clients position themselves for growth by identifying lending partners aligned with current market sentiment.
If you own or manage commercial property, let’s talk before the Budget lands, so you’re ready to move fast when opportunities appear.