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Category: Housing

  • Eddie Hughes – 2022 Speech on the Sharing Economy and Short-Term Letting

    Eddie Hughes – 2022 Speech on the Sharing Economy and Short-Term Letting

    The speech made by Eddie Hughes, the Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities, in the House of Commons on 16 June 2022.

    I begin by thanking my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) for the opportunity to debate this important issue. It is a matter of considerable interest to many hon. Members across all parties and I am grateful to have heard some of their contributions today. Although short-term and holiday letting to paying guests is not a new phenomenon, it is clear that there has been rapid and significant growth in the market over the last decade or so, driven by the proliferation and popularity of online platforms such as Airbnb—other platforms are available.

    Many hon. Members will have seen first hand and heard from their constituents as to the challenges and, on occasion, the benefits that that growth has brought to communities, the tourism industry and the wider housing market. Today’s debate has been an invaluable opportunity to hear about the picture in different areas of England, and indeed Scotland.

    We can all agree that the sharing economy makes an important contribution to the wider economy. Some estimates suggest that short-term let hosts and guests contribute more than £3 billion to the UK economy. The sharing economy also benefits consumers, who enjoy a greater choice of accommodation at a range of competitive prices. Obviously, for households who have unoccupied or underused accommodation, it provides an additional source of income. Of course, an increased number of tourists in any area will have a positive knock-on effect for local businesses, particularly tourism and hospitality businesses, which will see more footfall and more spending.

    Despite those myriad benefits, there are major drawbacks for certain local areas as hon. Members have highlighted. It is a particular issue in hotspots such as the constituency of my hon. Friend the Member for Cities of London and Westminster; in York, as the hon. Member for York Central (Rachael Maskell) highlighted; in rural areas, such as the south-west and the Lake District; and in Edinburgh, as the hon. Member for Edinburgh East (Tommy Sheppard) highlighted.

    It has been argued that the growing number of short-term lets is affecting housing supply. Some people are rightly concerned that landlords may be prioritising short-term letting activity instead of long-term tenancy arrangements. Today, the Government published a White Paper for private renters, “A Fairer Private Rented Sector”, which sets out our plan to fundamentally reform the sector and to level up housing quality in this country. Our hope is that that package of measures will help good landlords in the market.

    Another concern about short-term and holiday lets is the reports of noisy neighbours and the antisocial or nuisance behaviour of guests. Indeed, the Greater London Authority has reported that in the five London boroughs with the most Airbnb listings, there have been complaints related to short-term letting activity. Westminster reported 194 complaints of noise, waste and antisocial behaviour over just one year. Local authorities have a range of powers to enable them to tackle such issues, including being able to serve abatement notices if they believe a statutory nuisance is taking place; powers to tackle noise under the Noise Act 1996; and powers under the Anti-social Behaviour, Crime and Policing Act 2014 to act on nuisances such as litter and garden rubbish, as well as noise.

    As we have heard from my hon. Friend the Member for Cities of London and Westminster, a further issue in London is that some short-term lets are regularly in breach of the 90-day rule that we have heard about. She has done a valiant job of lobbying Airbnb to take an industry lead and has encouraged it to accept a registration scheme, to provide local authorities with full disclosure of properties in their area, and to enforce that rule.

    For those unfamiliar, if London properties that are liable for council tax are let out for more than 90 nights a year, that represents a material change of use for which planning permission is required. That rule was introduced in the Deregulation Act 2015 and gave Londoners similar freedoms to residents in the rest of England, where there are no restrictions. Prior to 2015, Londoners could not let out their homes on a short-term basis. The rule means that Londoners can rent out their property when, for example, they are away on holiday. In practice, however, as we have heard, local authorities say that they are struggling to enforce when there are breaches because of a lack of data on where the lets are located and who runs them.

    This brings me on to what steps the Government are taking to improve how the short-term lettings sector operates. There is currently no definitive source of data on short-term lets, and much existing evidence is largely anecdotal. Much of the publicly available data also predates covid-19, so we really need to get an up-to-date picture of how the market is operating today. In the very near future, the Department for Digital, Culture, Media and Sport therefore intends to publish a call for evidence to help us do precisely that. After this debate, when I see the relevant Minister in the Tea Room, I will be nudging him in the right direction. Getting an up-to-date picture of how the market is operating will be vital for developing appropriate ways forward that not only preserve the benefits of short-term letting but address the challenges. When the call for evidence is published, the Government will welcome responses from those who have spoken today so that, when working out what the Government should do next, we can take advantage of the valuable knowledge imparted today.

    Rachael Maskell

    It is my understanding that DCMS will be looking at a registration scheme, not a licensing scheme, and there is a world of difference between them. Given the Minister’s departmental interest in this issue, could there be a roundtable to discuss the impact of this and the difference between licensing and registration? Would he advocate or facilitate such a roundtable with, for instance, the Members here and Members with a particular interest in this issue?

    Eddie Hughes

    I do not know if I can facilitate that, but, trust me, I am definitely going to advocate it. I think the idea of a roundtable with the relevant Ministers from my Department and DCMS would be an excellent idea. That would give colleagues from across the House the opportunity to engage, and it would be delightful if the hon. Member for Edinburgh East could contribute to it as well. I fully appreciate the jurisdictional element, but it would still be good to have his input.

    Another prominent call is for changes to the planning system. I recognise that the creation of a new class for short-term lets appears an attractive way to limit them. However, this would also create challenges about how a new use class would be applied and effectively enforced. That said, I know that the Scottish Government have made changes to their planning system and the Welsh Government are consulting on making changes to reflect the new world created by short-term holiday lets. I would remind Members participating in this debate that the spread of second homes and holiday lets across England is not a consistent picture and clearly varies region by region. Nevertheless, we are speaking with the Welsh Government about the progress and implementation of their planning proposals, and I can assure Members that we will keep this area under review.

    I want to mention briefly the action the Government are taking through the tax system. We have strengthened the criteria under which second properties are considered as commercial holiday lets and assessed for business rates, rather than council tax. From 1 April next year, holiday lets will be required to demonstrate that the property has actually been let out for at least 70 days in the preceding year. This will ensure that only genuine holiday businesses that bring tourists to destinations across the country and contribute to the economy can access the rate relief for small businesses.

    Today’s debate has also touched on the impact that short-term lets have on the housing market, so I want to mention what steps the Government are taking to address the challenges in our housing market. They include making the dream of home ownership a reality, as well as delivering a significant number of new affordable homes, so that everyone can access a safe and secure home that is affordable to them. We are investing £11.5 billion in the affordable homes programme, which, if economic conditions allow, will provide up to 180,000 homes across the country.

    We are also adopting new measures to support people getting on to the housing ladder. Since 2010, over 758,000 households have been helped to purchase a home through Government-backed schemes, including Help to Buy and the right to buy. On top of this, our First Homes programme offers homes to local first-time buyers with a discount of at least 30% on the full market value. Local authorities also have the discretion to apply additional eligibility criteria to First Homes through the plan-making process, including deeper discounts of 40% or 50% where buyers can demonstrate a local connection in order to prioritise local residents and key workers.

    I want to close by once again thanking my hon. Friend the Member for Cities of London and Westminster for bringing this important debate to the House. The Government are acutely aware of the issue, and I can assure colleagues that we are paying close attention to it and giving it careful consideration both in my Department and in DCMS. As highlighted at the outset, we recognise that the sharing economy can be beneficial for local communities and businesses, but we are equally clear that those benefits cannot come at the expense of our ultimate priority of ensuring that everyone has access to a decent, safe and affordable home.

  • Jeff Smith – 2022 Speech on the Sharing Economy and Short-Term Letting

    Jeff Smith – 2022 Speech on the Sharing Economy and Short-Term Letting

    The speech made by Jeff Smith, the Labour MP for Manchester Withington, in the House of Commons on 16 June 2022.

    I congratulate the hon. Member for Cities of London and Westminster (Nickie Aiken) on securing the debate and on her opening speech, which set out the issues really well. We have also had excellent speeches from my hon. Friends the Members for York Central (Rachael Maskell) and for Westminster North (Ms Buck). What has been noticeable, as we have just heard, is the consensus here. We may be small in number, but we all recognise the issue and we all recognise that it needs to be tackled. The fact that there are not many people in the Chamber may be because it is not a controversial proposal.

    Britain is a fantastic country, with a wealth of exciting places to visit: our remarkable cultural heritage; our world-class attractions and events; our incredible scenery; our coastal towns and vibrant cities, and our amazing capital city. But the tourism sector has really suffered as a result of the pandemic, and its recovery has been much slower than other sectors. VisitBritain found that the UK’s tourism sector lost a total of £146 billion over 2020 and 2021—around £200 million per day.

    The tourism sector in the UK is recovering at a slower rate than that in Europe and the USA. We have tourism recovery plan targets and a review of destination management organisations gathering dust on the shelf. Despite that, we know that we will recover. People are already returning to big events. In Manchester, last week, we had one of our biggest weekends ever, with lots of huge events around the city, with hotel rooms packed, bars packed, and Airbnbs packed. The inbound tourist trade is picking up as well. Domestic or tourist visitors want somewhere affordable and convenient to stay. Short-term lets have helped many people to do this, encouraging people to holiday domestically in the UK and housing people from abroad. That is generally good, notwithstanding the difficulties for some hotel operators that were identified by the hon. Member for Edinburgh East (Tommy Sheppard). We want those holidays, those visits and those day trips to continue and to grow.

    However, short-term letting is only a good thing if it is sustainable and strengthens, rather than weakens, communities. As we have heard today, in many places, housing supply, local services, safety and wellbeing are affected by the trend towards short-term lets. Properly managed, short-term lets can have real benefits: they can increase housing options, especially at peak times —I have used Airbnb for Labour party conference accommodation, so I know how it can add capacity when all the hotels are packed out for conferences—they can ensure that empty rooms can be used efficiently and they give people an opportunity to make a little extra money.

    A residential property that is being used for Airbnb, however—I use Airbnb as a kind of shorthand, but it is the clearly the market leader in this area—can cause the kinds of issues for residents that we have heard articulated so well today, and can take that property out of the residential housing market.

    Mrs Natalie Elphicke (Dover) (Con)

    The hon. Gentleman mentions Airbnb. In the town of Deal, which I represent, there is a particular problem of Airbnbs that are not registered. Does he agree that having a registration system for Airbnbs would be a sensible move to protect coastal communities and tourism in areas such as mine?

    Mr Deputy Speaker (Mr Nigel Evans)

    I was hugely generous, and so was the Front-Bench spokesman, in allowing that intervention, for obvious reasons.

    Jeff Smith

    The hon. Lady makes an important point. I will come on to registration, but clearly we do need to look at the options.

    We have heard about the problems caused, with residents citing health and safety concerns where temporary residents are not familiar with or do not care about safety rules. There are issues with short-term rentals being used for parties, and we have heard about noise and antisocial behaviour. However, the longer-term concern, which I think is probably the more significant, is around the sustainability of communities when too many residential properties become short-term lets. I will talk about that in a second.

    In London, as we have heard, the law currently allows short-term letting of residential properties for a maximum of 90 nights in a calendar year without planning permission. Since 2017, Airbnb has automatically limited entire home listings in Greater London to 90 nights per calendar year, to encourage compliance with that law. By February 2020 two similar platforms, HomeAway and TripAdvisor, had also implemented a cap. The Mayor of London has encouraged other platforms to do the same, but there are easy ways around those rules, as we heard earlier, and many properties are still being let out on a short-term basis for more than the permitted 90 nights. When the 90-night limit is exceeded illegally, the issues are compounded and likely to grow and grow.

    Outside London, there is no specific limit on how long a property can be let out on a short-term basis, and it is up to local planning authorities to judge whether the letting amounts to a material change of use and requires planning permission. As well as the difficulties that we have talked about for residents, as my hon. Friend the Member for Westminster North pointed out, the complaints about antisocial behaviour are putting pressure on local authorities and their resources, already overstretched following years of Tory and coalition Government cuts to local authorities. That puts huge pressure on local enforcement teams.

    The hon. Member for Cities of London and Westminster (Nickie Aiken) is calling for the introduction of a licensing scheme, making it mandatory for anyone renting out their property on a short-term basis to have to register it. That would make it easier for local authorities to tackle some of those issues and the law-breaking that might arise. I pay tribute to my hon. Friend the Member for Westminster North for her consistent campaigning on this issue and her work over a number of years, calling on the Government to give local councils more powers to manage how properties are used for short-term rentals. Those are all proposals that must be looked at seriously by the Government.

    I know from my own constituency in south Manchester the problems that occur when houses become party let houses. It used to be in my area that it was only the student houses in multiple occupancy that became party houses and posed a real problem for long-term residents, but now a lot of our houses are let out by Airbnb and are causing real difficulties for the long-term residents with noise, litter and disturbance.

    The hon. Member for Edinburgh East talked about control zones. When I was a councillor in Manchester, we introduced an article 4 direction to limit the number of HMOs that could be permitted in an area, and that kind of innovative approach is something we need to look at. It would be interesting to see how the control zones in Edinburgh work and how we can learn from them.

    As well as the kinds of problems that my constituency and other urban areas are experiencing, the prominence of second homes and short-term lets is causing a housing and public services crisis in popular tourist destinations across some of the more rural parts of the UK. Cornwall, Cumbria, Northumberland, the west country, Shropshire, parts of Yorkshire, the Scottish highlands, as we have heard, and rural Wales have all suffered. To thrive, communities need investment, employment opportunities and, in many cases, thriving tourism industries, but they also need affordable homes for local people. Accelerated by the pandemic, many of these areas have seen house prices soar and availability drop as wealthy outsiders buy up second homes, often for buy-to-let, and then they discover that owners can often get more money from a short-term let than from a long-term tenant.

    Properties that were previously for permanent rental are being turned into Airbnb holiday lets, which impacts directly on the affordability and availability of local homes, particularly for local first-time buyers and private renters. It also means that houses are left empty for large chunks of the year, reducing permanent populations. That can have pretty disastrous impacts on the local community, such as: school closures, because families are forced out and schools become unsustainable; cuts to transport services and buses; and health and other services disappearing as demand drops.

    It seems pretty clear that the Government need to explore whether and how local authorities can be provided the powers to tackle this issue. We have heard a few examples. We can introduce licensing regimes for second homes and short-term lets, we can consider giving councils greater discretion over council tax regimes and we can look at allowing local authorities to levy more premiums or surcharges on second homes and long-term empty properties, if they believe it is needed in their locality. Some local authorities are backing calls for more powers in planning to recognise short-term rentals as a different use class, meaning that people who want to use their home exclusively for Airbnb would need planning permission. Local authorities could control how their local areas operate in a number of ways.

    It is welcome that the Government committed to launching a consultation on the introduction of a tourist accommodation registration scheme in England. So far, we have seen no sign of it. It was promised in early 2022. We are mid-June, so we have probably passed “early 2022”. I would be very happy if the Minister could confirm when the consultation will open and how long it will run for. While we continue to wait for it, I welcome the news that the Labour Mayor of London has just launched his own consultation on the issue. I encourage everyone in London affected by this issue to participate before the consultation closes on 4 July.

    The rise of Airbnb is just one example of the emergence of the sharing economy. Many businesses have become everyday fixtures of our modern lives. At their best, these platforms can be about reducing waste, pooling space, skills and items, and making life easier and more sustainable, but it does not always work like that, and when it becomes commercial, it can cause difficulties. When Airbnb and similar websites first emerged, it was about individuals occasionally making a bit of extra income on their spare room or own property, but things are very different now. A large part of the short-term rental market is now a wholly commercial enterprise. Residential properties are being used as letting businesses without the required planning permission, local authority oversight or protections for neighbours and communities. We clearly need to respond now to that different context.

    Let us learn from the examples we have heard about from abroad. Let us look at the changes in Scotland and elsewhere. Airbnb has said that it is willing to work with the Government on regulation to ease some of the challenges to which it is contributing. It published a healthy tourism commitment and the “Short-term Lets Registration White Paper”, which calls for the introduction of a simple nationwide registration scheme for the short-term lettings sector.

    The willingness is there from stakeholders. The political imperative is there, I would argue, and the political consensus is there that we need to get a grip of this. The need is certainly there, as has been well articulated today. It is now time for the Government to act, to start to tackle this issue and to get the balance right for our communities.

  • Tommy Sheppard – 2022 Speech on the Sharing Economy and Short-Term Letting

    Tommy Sheppard – 2022 Speech on the Sharing Economy and Short-Term Letting

    The speech made by Tommy Sheppard, the SNP MP for Edinburgh East, in the House of Commons on 16 June 2022.

    Like many other aspects of our online lives, this started as a good idea: take a list of people who want short-term accommodation and use the internet to match it with a list of people who can provide it. Unfortunately, what we see today has become a grotesque distortion of the original idea. As has been mentioned, the vast majority of properties that are offered as short-term lets are not spare rooms in somebody’s house: they are whole properties being offered on a commercial basis. That is regrettable, because the process has become a driver for the removal of accommodation from the private rented sector into the short-term-let market, mainly catering for leisure uses. It has resulted in appalling consequences for the local housing market. Now, in effect, we have operators operating unlicensed hotels, but rather than the accommodation being in one building it is spread throughout an entire community in a pepper-pot fashion.

    This is a problem throughout Scotland, but it affects some parts more than others. The highlands in particular has a very great problem, but probably the biggest problem of all is in our capital city, Edinburgh, the city I am proud to represent in this House. In 2019, fully one third of all the Airbnb listings in Scotland were in Edinburgh. In some of the wards, particularly those in the city centre, one fifth of all accommodation is listed on Airbnb. By the way, that is just Airbnb; there are other operators, so the scale of the penetration of short-term lets in Edinburgh city centre is probably even greater than that.

    By the end of the previous decade, the situation had reached crisis proportions, which is why the city authorities, working with the Scottish Government, decided to act. I will say something about that in a moment, but first let me describe some of the consequences of the process for my local community. With this penetration of up to one in five properties being available for short-term lets has come a hollowing out of the local community, particularly in some of our historic areas, which we want to see thrive. It is impossible for people to get to know their neighbours if they change every week. The people who come—there used to be people who lived there on a permanent basis—no longer send their kids to local schools. They do not even use the local shops, because they tend to arrive and get an out-of-town supermarket delivery to the door. They play no role in building the local economy or in community cohesion. As a double whammy, they provide a great deal of disturbance and inconvenience to the people who are left to live there.

    I repeatedly have casework on this issue. Just this week a local councillor, Finlay McFarlane, brought to me the case of a resident who has lived off the Royal Mile for more than 20 years. She is currently finishing her PhD thesis but is unable to do so because most of her block is now short-term lets, with people coming in to have parties, on week nights as well as at weekends, with the constant confusion, noise and disturbance that results. In her words, it has become “almost uninhabitable”. That is a common problem.

    As well as the loss of homes, there is another consequence for a city such as mine that relies a lot on tourism and where tourism is very important. A number of bona fide hotel operators have come to me and pointed out that people are running unlicensed hotels on a commercial basis, without having health and safety standards, without meeting all the other requirements and without paying taxes. Hotel operators are being undercut as accommodation providers by people using the short-term-let sector. It is, then, grossly unfair in distorting the tourism market as well.

    As has been referenced, we are trying to do something about this in Scotland. The law changed last year: from 1 March, the law has come in to create a new framework for the operation of short-term lets in Scotland, of which my own city is determined to take advantage. The key thing is to bring in a licensing framework, with the local authority being the licensing body. In order to operate a let on a short-term basis, one will require a licence. That will be the law from 1 October this year for anybody trying to enter the market as a new operator, and by 2024 it will be a requirement for everybody operating a short-term let to have such a licence, and it will be unlawful if they do not have it.

    There is another important component to the legislation in Scotland. That is the ability of local authorities to ask for permission to designate a short-term-let control area within their boundary, where there is a particular need for housing stress or where there is a particular problem of abuse. The City of Edinburgh Council has taken the unusual step of asking the Scottish Government to designate the entire city as a control area. The council took that decision, with every party on the local authority supporting it, and after an extensive consultation involving 5,600 responses where more than 88% of respondents said that that was what they wanted. The Scottish Government have agreed to that. What that means is that, in order to let a property that is not currently let on a short-term basis, a person will require not just a licence, but planning permission. They will have to apply for and get a change-of-use planning consent as a condition of getting the licence if they are in a control area.

    That is what will happen in Edinburgh, but it will take some time. It is important, as with other matters, that planning decisions are consistent with the local development plan, which means that they have to be evidenced and backed up, so we do need to make amendments and get them bedded in. I am confident that, in the years ahead, my city will be able to get control of this. If these measures do not work, I can assure Members that there is an appetite for going further and making sure that we get other measures that do work.

    In conclusion, I shall reiterate what colleagues have said on a cross-party basis. This is not a matter of saying that there should not be short-term lets, or trying to do down people who want to rent out a spare room—far from it. It is simply saying that if people wish to do this on a commercial basis, then they have to operate on a level playing field, with the same obligations and the same consequences as anybody else who tries to run a business. They have to take cognisance and be respectful of the local community and the conditions in which they are trying to make that money. I hope the situation in Edinburgh and in Scotland will improve dramatically, and I commend these measures to the UK Government, because they may want to consider following Scotland’s lead and doing this in other parts of the UK where it is so urgently needed.

  • Rachael Maskell – 2022 Speech on the Sharing Economy and Short-Term Letting

    Rachael Maskell – 2022 Speech on the Sharing Economy and Short-Term Letting

    The speech made by Rachael Maskell, the Labour MP for York Central, in the House of Commons on 16 June 2022.

    I congratulate the hon. Member for Cities of London and Westminster (Nickie Aiken) and my hon. Friend the Member for Westminster North (Ms Buck) on their speeches today. I want to take the debate outside Westminster and highlight the impact this issue is having elsewhere in the country.

    Members in all parts of the House know that this industry is growing at a rapid pace in tourist destinations. York, the most visited place outside London, is certainly experiencing many of the problems that have been described this afternoon, and on a matching scale, although our city is slightly smaller. We know that in York there are about 2,000 Airbnbs already, predominantly in my constituency, but they are increasingly becoming an issue on the outskirts of the city and in the more rural villages. In the city centre, we often find streets—family streets—where there are five or six Airbnbs, and it is having a serious impact. Everywhere I go across my constituency, I have constituents come up to me to talk about Airbnbs and holiday lets—or, as they are increasingly being called, party houses. They are not in keeping with the character of our city. There is a clash of cultures between families, who just want to get on with everyday living, and the predominantly weekend culture of parties, which in the summer never stops.

    We are not seeing this just in existing properties in the city. Increasingly, we are seeing it in new developments in York. Developers are putting predominantly luxury accommodation in the city, but many of the properties are being bought as investment assets. That is an issue we all have with what is happening in parts of the property market. Of course, if they are vacant, suddenly the lights go on and people think, “Why don’t we turn this into a short-term holiday let?” We are seeing an increase in that in the new estates.

    I certainly had concerns about this in relation to proposals for the York Central development. It is an incredible development, with 2,500 homes proposed for the site. In my discussions with Homes England, there was a recognition that this could become a party city right in the middle of York, because local people will not be able to afford to live in those luxury homes. They will therefore end up just going straight into the hands of the companies that are running the Airbnbs. Also, the numbers in the new developments go into the Government’s housing numbers, so the Government are ticking off their lists and saying they are achieving their housing targets, but those houses are actually just switching over to become Airbnbs. They are part of what I call the extraction economy—not the shared economy—because people are taking that property and wealth out of our city, and nobody gains. In fact, everybody loses. That is why it is important that the Government get a grip of this now and bring forward the legislation that is needed to regulate this area.

    Ultimately, these are homes that we desperately need. We have all spoken about the shortage of housing in our constituencies, the fact that social housing waiting lists are rising sharply and the availability of property to buy is just not there. Every single time a property comes on to the housing market, in come these owners of Airbnb, cash in hand, hoovering up the properties ahead of people who have saved meticulously for their mortgage. And they are offering over the market price for those properties. I heard of one incident in York where they offered £70,000 more than the market price for the property. As a result, local people were not able to move in. I speak to young couples and families—as we know, people are now much older before they can even think about purchasing a home—and they are saying that they save and save and try to enter the market, but every time they are beaten to the post by people who then turn the properties into Airbnbs.

    Ms Buck

    My hon. Friend has probably seen the advertising—for a while there was advertising on the London underground—saying how much more money people could get by taking advantage of short-term lets. This is creating a powerful incentive to do exactly what she is describing.

    Rachael Maskell

    My hon. Friend is absolutely right.

    The average rental price in York is extortionate—not compared with London but certainly compared with elsewhere in the north—at £945 a month for private rented accommodation. On Airbnb, that same property could go for £700 for a weekend. As a result we are seeing a frenzy among landlords who are saying, “Actually, I could get a lot more money out of an Airbnb property, so I’m going to issue a section 21 notice, evict my current tenants and then turn the property over to an Airbnb.” As a student city, we have more than 40,000 students in York, but many of the homes in the student areas are also turning themselves over to Airbnb. This means that we have a shortage of student accommodation as well as local people not being able to get into housing. The impact on the housing in the city is escalating.

    Some of these places are being marketed not just as holiday lets; they are deliberately being marketed for stage and hen parties. This is becoming an issue that impacts not only on our city centre, because those parties are being taken out into the community. I have one cul-de-sac in the Groves in York where there are three of these Airbnbs in a little courtyard, and they advertise for 30 people to go and spend their weekend there. It is at the end of a family residential street, and people in my community have told me that the noise goes on all night. These are working people; they are working shifts and have jobs to do. Their children are going to school and perhaps sitting exams at this time of year, but they are having sleepless nights. On top of that, they are trying to shelter their children from the profane language. People are half-clad in the streets. Women do not feel safe down some of the back alleys in the Groves, where a lot of children play. It is turning these wonderful little communities in York into nightmares.

    People do not feel safe in their own home anymore. In fact, I heard from one family who put their house on the market and moved out of the city, which was the only way they could escape the party houses that were increasingly in their area. They wrote to me about the impact it was having.

    With the increase in Airbnbs, we are seeing the disappearance of York’s ability to house its own local community, which is having a severe impact on the local economy. We have heard about the tourism sector, but traditional B&Bs are losing out because they follow all the rules, pay their duty, follow health and safety and all the other things. They are in direct competition and, of course, they are covering their costs, so they are being pushed out. Guest houses are the same.

    We are therefore seeing deregulation of the whole visitor economy, which does not benefit the location and has serious implications for local businesses. I challenge those who say this is good for the economy, because what we are seeing is an extraction economy. Many people purchasing houses in York are not from York. They are from London and the south-east predominantly, so they are seeing the opportunity as a holiday destination. They have no connection to those communities, so they are taking out of those communities, not feeding into them.

    When I hear the expectation that there is going to be a 30% a year rise in the number of Airbnb properties over the next decade, according to Airbnb’s own research, it fills me with terror, so it is important that we get on top of this issue now. That increase is going to make it far worse, year by year, across our communities, and it will fuel our housing crisis even more, which will give the Minister the biggest headache of all. We are standing up to say we need this to be addressed.

    I know the Minister has an interest in social housing, but we are seeing these people go cash in hand, along the same line as right to buy, and say, “If you buy your home and go through that process, we will be back to give you even more money in exchange for your property.” That is why it needs to be regulated, and regulated tightly.

    Airbnb is having a profound impact on our community and services in the city. This is not particularly thought about, but our economy is now struggling to recruit the people it needs. Airbnb is escalating and fuelling the housing crisis, which is impacting on care workers and NHS staff being able to find property in the city. It is impacting on the hospitality sector. Of course, the people coming to our city often use those services and want hospitality venues to be open, but the sector cannot recruit staff. The people who would have been in those properties cannot afford to live in the city anymore, so they are being pushed out. Airbnb is having a negative impact not just on the housing environment but on the local economy. The deregulated system is not working.

    We have heard about the impact on children and the community. When section 21 notices are issued, children have to leave their school and go elsewhere. That is having a negative impact across the area.

    We have heard about people’s weekends of misery. When Friday comes, they do not know who will come off the train with their trolley bags and wander up the street. They do not know whether they are going to have a peaceful weekend or a party to endure and, of course, the other antisocial behaviour that goes with it. Some of the things I have heard are quite horrific. This is not what our city is about and it is not what my local people want our city to be about in the future. That is why we need to address this.

    As the hon. Member for Cities of London and Westminster mentioned, there is also a loss of local revenue involved here. York is losing about £2 million in council tax, and many of these escape under the bar in terms of being a “small business” so they are not paying small business rates. Across the country we do not have the 90-day limit either, so we are talking about this loss throughout the year, along with the implications it is having. This has escalated in York during the pandemic. York has been seen as this fantastic place, two hours away from London and an amazing city to live in, with good schools and all the rest of it, but people have then realised, “Ah, but it is also a really good destination for staycation.” That has been incredible for our recovery, and I am not knocking it at all, but people have also seen the chance, over the lockdown period and particularly since, to come to invest in Airbnbs. That is why we are seeing this sudden growth in the city, which has taken it by shock and surprise, and has had that negative impact there.

    I know that the Government have been on a path to look at a registration scheme on Airbnbs. I do not knock them for that, but the world has changed rapidly. I just say to them that we need to move on from that now and look at a full licensing scheme. A registration scheme would simply have serious deficiencies. We have heard about the benefits of a licensing scheme in Lisbon, and Scotland is introducing one. I also point the Minister towards what has happened in Nice, which has a stringent licensing scheme, but one that works incredibly well for those residents. A licensing scheme could help local government have sufficiency in resourcing to support this.

    Both hon. Members have mentioned having a different class of housing so that a separate revenue could be charged from that, but we could also look at doubling council tax or even at having a multiplier on council tax, at the local authority’s discretion. This could be one way of looking at how we can build that revenue back into the local area. Of course these people will then pay for those services—currently they are not—such as refuge collection and even parking schemes, which have an impact on areas. We could also limit housing, and we have heard from hon. Members how advantageous that would be to a local area as well. Nice has not only a strict fines regime to deal with significant antisocial behaviour, but the right to remove licences and to grant licences. It is looking at how it can place conditions on licensed properties. There would be real advantage, not in the Government holding those powers, but in giving them to local communities, through their local authority. It would make landlords themselves have more responsibility as well for the properties that they let, including through a third party—an agency—and it would bring in greater controls.

    Finally, let me look at the speed with which we need to bring this in. The Levelling-up and Regeneration Bill is before Parliament, and it talks about opportunities associated with things such as second property reform. As we have heard, for many people we are talking not just about a second property, but a third, fourth and so on. I have heard that some have more than 100 properties; this is a very highly organised industry. It would seem appropriate that the Government could table an amendment or new clause to that Bill to look at this issue and address the matters before us. If we do not act now, the housing issues that the Minister and his team are trying to resolve, which are complex and growing, are going to just get worse and worse. Therefore, I would really welcome more discussion with the Government about how we are going to move this rapidly into legislation to end this nightmare for our residents. Given the number of Members from across the House and their communities that this has an impact on, may I suggest to the Minister that he holds a roundtable with us so that we can discuss these issues at length? I think that across the House we all share the view of what we need to achieve, and I am sure that we can find the right solutions for government and for our communities.

  • Karen Buck – 2022 Speech on the Sharing Economy and Short-Term Letting

    Karen Buck – 2022 Speech on the Sharing Economy and Short-Term Letting

    The speech made by Karen Buck, the Labour MP for Westminster North, in the House of Commons on 16 June 2022.

    I congratulate the hon. Member for Cities of London and Westminster (Nickie Aiken). As the Member for the other part of the borough of Westminster, I apologise for covering some of the same ground in respect of locality.

    Having set up the all-party parliamentary group on the short lets sector, I am conscious that the issues that the hon. Member describes are having an increasing impact on cities, coastal communities and popular tourist areas across the country. Although it is always deeply unedifying to stand up in Parliament and say “I told you so,” I have to say that we told the Government so. During the passage of the Deregulation Act 2015, we warned that the changes allowing the 90-day limit in London would be likely to lead to an explosion in short lets and a very detrimental impact on communities—and that is exactly what has happened.

    I remember saying in debates on the Deregulation Bill and on two subsequent ten-minute rule Bills—the Short and Holiday-Let Accommodation (Notification of Local Authorities) Bill and the Short and Holiday-Let Accommodation (Registration) Bill—that residential communities are being turned into unlicensed and unmanaged branches of the hospitality industry. The hon. Member has made many of the same points; I will not repeat them, but let me very briefly reinforce them.

    As the hon. Member says, nobody is proposing any kind of ban. The sharing economy concept is a strong one. It is a smart and popular idea for people to let out a spare room or let out their home for a couple of weeks when they go on holiday or work abroad: it generates money in communities, generates money for the people who let the properties, and is clearly popular with the people who rent them. The digital economy has created enormous opportunities, and that is one of them.

    However, the implementation has changed fundamentally since the original concept: it is now a highly commercial enterprise, as the figures show. A report in 2020—I have cited it previously, but I cite it again—found that just one sixth of the revenue of Airbnb, which is a major player in the field, came from the kind of home-sharing let that was its original concept. As the hon. Member says, we can track the huge shift to whole-property rentals, which has been very significant in London and across the whole country. Research by Tom Simcock of Edge Hill University has found a 423% increase in lettings by “multi-hosts”, owners of multiple properties. That gives an indication of how deeply and increasingly commercialised the sector is.

    The impact is felt in the loss of residential property; the hon. Member made that point, and I endorse it. The clear indication is that it is financially advantageous to landlords to move out of the lettings market and into the short-let market, where they can make substantially more income and enjoy significant tax advantages in doing so. All over our borough of Westminster, properties where people could once live are being used just for the holiday industry. That has all kinds of impacts on people in housing need, and on communities.

    There is also an impact on the management of antisocial behaviour and nuisance, ranging from noise to rubbish. If people were staying in hotels or in registered hospitality, there would be commercial arrangements for waste collection and they would be making a contribution. None of that applies in this instance.

    This morning, entirely by coincidence, I received an email from a constituent on Harrow Road—not the heart of the west end, but the very north of my constituency, at the poorer end. I was told that five identified properties were now being let as short lets; people were coming and going with their luggage all through the day and night, and it was causing concerns about security. It is not necessarily that people choose to behave badly, or that they are acting in an especially antisocial way, but when people are on holiday they act differently. They do not have the same constraints as residents on the hours they keep or the way they act, and they certainly do not have the same sense of responsibility for security. It causes a great deal of anxiety.

    It has been said, and I will repeat, that local authorities have their hands tied behind their back when it comes to enforcing against short lettings. Finding properties that are legally let under the short let arrangements but have to be acted on when they breach the 90-day rule is asking local authorities—cash-strapped local authorities—to do the almost impossible. They do not know who is letting. They would have to monitor everything to find that out and then be able to prove that the letting exceeded the 90-day limit. It is completely unreasonable to ask them to do that.

    Landlords, particularly the commercial landlords that see the advantages of short let arrangements, are driving a coach and horses through the legislation. This is leading to enormous strains in local communities and a great deal of anger among neighbours, who turn to the local authority to help with enforcement but find that the local authority does not have the capacity to do so. Also, not unreasonably, the hospitality industry, which has had a terrible couple of years with covid, feels that there is not a level playing field, given its members’ responsibilities in terms of health and safety and taxation. They are being undercut, not by individuals letting out a spare room, but by major players in the corporate hospitality sector exploiting a loophole.

    It is essential that the Government wake up to this problem. It is spreading across the country and the implications are profound. The Government can act very quickly, without excessive regulation, just to make sure that people who let out these properties are licensed to do so and that we know who they are. If we know who they are, we are in a better position to act when they breach the rules. We have been asking for this for seven years. It is a cross-party issue—cross-party in the local authority, Westminster, and cross-party in Parliament. The Minister must wake up and act to protect communities and to protect us against the loss of valuable residential property before it is too late.

  • Nickie Aiken – 2022 Speech on the Sharing Economy and Short-Term Letting

    Nickie Aiken – 2022 Speech on the Sharing Economy and Short-Term Letting

    The speech made by Nickie Aiken, the Conservative MP for the Cities of London and Westminster, in the House of Commons on 16 June 2022.

    I beg to move,

    That this House has considered short-term letting and the sharing economy.

    I have called this debate to once again draw attention to the negative impact on our neighbourhoods up and down the country caused by the abuse of short-term lettings. Short-term lettings are when property is let on a nightly or weekly basis usually for leisure and tourism purposes. We are seeing them pop up on a variety of platforms, including Airbnb, Booking.com, Tripadvisor and Expedia. Since the Deregulation Act 2015, we have seen an increasing number of properties, which would otherwise have been rented out on a long-term basis, being turned into basically holiday accommodation. Between 2015 and 2020, the number of Airbnb listings in London alone grew by 378%. Research by London Councils found that by 2019, there were more than 73,000 listings for short-term lets in London across six of the largest online letting platforms. That is equivalent to one in every 50 homes in the capital.

    Felicity Buchan (Kensington) (Con)

    Does my hon. Friend agree that one issue with short-term lets is that they take housing stock out of the market? I have the neighbouring constituency of Kensington, and in the tourist areas, particularly around the South Kensington museums, there are streets that are almost exclusively Airbnbs. Many of those are one or two-bedroom properties, and that is aggravating the housing crisis because young people who would typically buy those properties simply cannot get access to them.

    Nickie Aiken

    My hon. Friend is absolutely right. With the explosion in the number of short-term lettings, a whole host of problems associated with such lettings have become more widespread across our neighbourhoods. I shall highlight a number of the issues we are seeing, which include increased pressure on housing stock, leading to higher property and rent prices—that is what my hon. Friend referred to. They also include a rise in associated antisocial behaviour, noise complaints and dumped rubbish, and an increasingly unfair playing field in the accommodation sector, which is placing more and more pressure on hotels and private bed-and-breakfast businesses.

    Since coming into force, the Deregulation Act 2015 introduced several changes that were designed to free businesses from the burdens caused by regulation and existing laws, including relaxing planning permission in London for short-term lets. When the Bill was going through Parliament, Westminster City Council predicted that homes would be, en masse, turned into lettings for tourists. We knew that those lettings would soon basically be turned into mini hotels, without any of the oversight or regulation that genuine hotels have to adhere to. That is why it was a relief in some contexts to see short-term lettings in London limited to just 90 nights per year under the Deregulation Act, following a sustained lobbying campaign by Westminster City Council. That was not enough, however, and sadly our worst fears have come to fruition.

    Without the right tools to enforce the Act our biggest concerns have become a reality for many local people, and many landlords involved in short-term lettings are ignoring the law. Research from 2019 estimated that 23% of 11,200 Airbnb listings in London alone were occupied for more than 90 nights in that year. With the number of short-term lettings skyrocketing, it is clear that we need urgently to get a grip of the situation, because it is becoming unsustainable.

    This is obviously not just a London issue. As my hon. Friend the Member for North Devon (Selaine Saxby) recently highlighted, 4,000 homes have come out of private rent in Devon since 2016, and 11,000 have joined the short-term holiday listings. I know from speaking to colleagues across the country that we are seeing that trend up and down the United Kingdom, particularly in places such as Cumbria and the south-west. This issue affects our whole country, and although problems such as strain on housing availability and the cost to local authorities may be the same nationwide, the diverse nature of the issue means that there will be no one-size-fits-all approach to resolving the problem. What we need, in my humble opinion, is for local authorities to be given the powers to do what they feel is right for their unique areas. For example, here in Westminster we need a licensing scheme much like those seen in other countries. Such schemes are generally set at a local level and ensure that standards are adhered to and that the market is not overwhelmed.

    We see key examples around the world. In Lisbon, the city council has implemented containment zones that limit the amount of short-term let accommodation within them. In Barcelona, landlords are required to have their properties inspected and approved before they can be let out. Closer to home, the Scottish Government have legislated for local authorities to introduce a short-term lets licensing scheme by October. It will be interesting to see how that works when it is implemented, and how successful it is.

    While such schemes differ from one another, they all suit their local needs, seeking to balance the sharing economy with the rights and amenity of local residents. That is what we should strive for across the UK, balancing tourism with the desire and need of locals to have a comfortable and quiet neighbourhood.

    We also see examples around the world where that has been taken further. In Atlanta in the United States, a tight licensing regime has been introduced with strict conditions. For example, hosts in that city have to hold a permit and pay an annual $150 fee. They face a $500 fine if a tenant violates city rules. They may have a maximum of two properties, one of which must be the host’s permanent residence. That is probably what we need for London.

    Across the world, we see that there is a full spectrum of examples and solutions, and it is about finding what works best in a local authority area. As it stands, the spirit of the Deregulation Act is not being met. We are seeing not the rise of individuals opening their spare rooms or their homes while they are on holiday, as the Government had hoped would happen under the Act, but a gradual increase in commercial businesses snatching up properties for the short-term letting market. Here in Westminster, 64% of hosts on Airbnb have at least two listings.

    Andy Slaughter (Hammersmith) (Lab)

    The hon. Lady is right to emphasise both the scale and the commercial nature of the problem; a lot of people think it is marginal when, in fact, in some areas it is endemic. Last week, I talked to a local headteacher who said that her school’s intake had been affected by a local mansion flat area changing from being long-term accommodation for homeless families into luxury accommodation with a substantial proportion of short-term lets, changing the character and demographics of the entire area. That is why the Government need to act.

    Nickie Aiken

    I do not often agree with the hon. Gentleman, but I certainly do on this.

    We are aware that, in Westminster and across central London, landlords can often skirt around the 90-night rule by posting their property on multiple sites or re-registering it in a location a few metres away. In turn, I am deeply worried that we are witnessing a hollowing out of central London, as the hon. Member for Hammersmith (Andy Slaughter) referred to regarding his local area, as properties convert all too easily from homes to holiday lets.

    At the start of 2022, the number of properties listed to rent across London was 35% lower than in pre-pandemic times. As I am sure hon. Members will appreciate, the housing market in my constituency and across the capital is already squeezed on both affordability and availability. We currently have over 4,000 households on the Westminster social housing waiting list in the same area that has 7,230 available properties on Airbnb. The average house price in the two cities has risen by £32,000 a year over the past 25 years. The most troubling issue is that, according to SpareRoom, average rents have now risen in the capital by 13% in the last year alone. That is why I find it increasingly frustrating that, while I can easily find plenty of examples of hosts with 50 or even 100 properties available, I cannot find a home to rent on a long-term basis in my constituency in the same areas.

    The dramatic increase in the number of properties converting to the holiday accommodation market and away from the private rented sector is ensuring that people are forced out of central London. It is getting so bad that I fear the only realistic possibility of the young finding a property in central London is by playing Monopoly. I do not mean to be flippant, but it is getting that bad. For those lucky enough to be able to find a property, there is an increasing likelihood that they will still find themselves living close to short-term letting properties, no matter where they are. As I am sure it is for many of my colleagues, that is reflected in my mailbag by constituents who find themselves having to live next door to short-term letting properties.

    Felicity Buchan

    Does my hon. Friend agree that there are other attendant problems with short-term lets, such as antisocial behaviour, properties being taken over essentially for large parties, rubbish being put out on the wrong day and littering the street, and, sometimes, a lack of respect for the neighbourhood?

    Nickie Aiken

    My hon. Friend is absolutely right. One of my constituents from Pimlico who wrote to me recently shares that view:

    “There has repeatedly been antisocial behaviour in the Airbnb-type flats in Tachbrook Street. The residents have no interest in the wellbeing of their neighbours. The flats are without doubt let throughout the year and the 90-day rule is completely ignored.”

    Post-pandemic complaints have increased in my constituency, with noise, rowdy parties, serious overcrowding, dumped rubbish and even sex work occurring within nightly let properties. From Mayfair to Marylebone and from Hyde Park to Covent Garden, no neighbourhood in Westminster is now free from the short-term let blight.

    On the ground, we have seen some pretty clear signals that short-term lets are increasingly causing social damage to our neighbourhoods. A YouGov study from 2019 found that 40% of Londoners felt that such accommodation was having a negative impact on the local sense of community. Worryingly, it also showed that one in five Londoners, when asked, felt that short-term lets had had a negative impact on safety in their local area. If these properties were rented out for just a few days a year, this issue might be manageable. However, as mentioned earlier, we know that is not the case. Local authorities lack the tools necessary to enforce the 90-night rule. As such, complaints are rising and communities are suffering.

    On antisocial behaviour, yes, the police and local authorities have powers to tackle it with antisocial behaviour and noise orders, but we do not always have the information needed to identify those involved. Of course, it is very hard for us to make general statements about what we would or would not think was a good idea, because this is a complex issue, but as I said earlier it is about flexibility. It is about giving local authorities the tools they need to protect their local areas. We have to be practical when it comes to enforcement measures. Right now, what continues to frustrate me, and I know thousands of my constituents, including councillors and officials in my local council, is that enforcement is virtually impossible, particularly when we do not know who is undertaking the antisocial behaviour. The lack of data makes it extremely hard for local authorities to identify them and then begin enforcement action.

    We need a change in the law to allow local authorities to fine landlords of properties that violate the rules, such as those on dumping rubbish. At the moment, responsibility lies with the tenant, not the landlord, even though the tenant will be long gone after having rented the property for a couple of nights—they have dumped the rubbish and they have gone. What we need is exactly what the former leader of Westminster City Council, Councillor Rachael Robathan, called for in response to more than 2,000 breaches of short-term letting rules—namely, to allow councils to go after the landlord rather than the short-term letter. That would help resolve the issue.

    The issue of tax compliance is also of concern. As the home sharing phenomenon becomes more mainstream, an important taxation revenue stream needs to be captured. As it stands, it is possible for landlords to hide their activities from Her Majesty’s Revenue and Customs and to perhaps not tell the truth on their self-assessment forms. If local authorities were able to collect data on what properties are being let out on a short-term basis, HMRC could access that data and ensure that no one was able to avoid paying tax on any money raised.

    In 2018, the Government issued a call for evidence on the role of online platforms in ensuring tax compliance by their users, but there do not appear to have been any major developments since then. Ensuring proper compliance would go some way to levelling up the playing field with other parts of the tourism economy. As highlighted by UK Hospitality:

    “Between the short-term lets, hotel and B&B sectors, a regulatory mismatch has also occurred in terms of health and safety and taxation.”

    I appreciate that there is a degree of self-regulation in the industry, but that is not enough. While hotels and B&B businesses must go through all sorts of checks and regulations to ensure the safety and wellbeing of their guests, the same oversight does not exist for short-term letting. For example, while Airbnb insists on things such as insurance indemnity, proper fire precautions and safety certificates for gas and electricity, I have met Airbnb hosts who have not once been asked by a platform to prove that they meet those requirements. If we were able to collect tax receipts from short-term lets, that could and should help in the enforcement of laws. It is not just about tax collection; we also need to make sure that landlords are on the same playing field as bona fide hotels and B&B businesses.

    I want to make it very clear that I am not against short-term letting. I absolutely recognise the many positives. As an Airbnb user in the past, I have benefited from being able to rent a home while on holiday. Short-term letting has provided and does provide an innovative and imaginative competition to the accommodation industry. However, the bottom line is that those positive impacts are paired with negative impacts, including lower health and safety standards; unfair competition for other hospitality providers; general economic issues such as mixed tax revenues and less availability of long-term rentals; increased rents and house prices; and pricing ordinary local people out of their area’s housing and rental markets. That is happening not just in central London but across the UK. In many cases, neighbourhoods have changed, with issues including antisocial behaviour, overcrowding of properties and transient communities.

    A sustainable approach, hopefully in the form of evidence-based, data-driven regulation and policy making, should address some of those issues. As I said earlier, there is no easy fix, no one-size-fits-all approach, but there are certainly stepping stones that we need to introduce. I hope that the Minister will pay serious attention not just to what I have said but, more importantly, to what we will hear later in this debate from Members of all political parties.

  • Eddie Hughes – 2022 Speech on Fifth Anniversary of Grenfell Tower Fire

    Eddie Hughes – 2022 Speech on Fifth Anniversary of Grenfell Tower Fire

    The speech made by Eddie Hughes, the Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities, in the House of Commons on 16 June 2022.

    I thank right hon. and hon. Members on both sides of the House for their moving and thought-provoking contributions in today’s debate. I know that I speak for all Members when I say that the 72 men, women and children who senselessly lost their lives at Grenfell will never be forgotten. It is entirely right that the House has met again just two days after the fifth anniversary of that national tragedy to honour their memory and to discuss our collective duty to ensure that such a tragedy is never repeated and that no one ever has to go through what residents of Grenfell Tower were forced to go through on that night or what the bereaved and survivors have had to endure over the last few years.

    As a Minister in the Department for Levelling Up, Housing and Communities, I feel an acute responsibility to do the right thing by the Grenfell community, and I know that feeling is shared on both sides of this House and in the other place. For those directly affected by that national tragedy, life has never been, or ever will be, the same again. The tributes paid this week by the survivors and their families to the victims have brought that fact into the sharpest possible light. As Members have rightly highlighted in their moving tributes today, and in last week’s debate led by my right hon. Friend the Secretary of State, the community has consistently shown incredible bravery, resilience and courage in the face of unimaginable loss.

    Until the Grenfell Tower inquiry concludes and the police investigation finishes, the search for justice will continue. Five years on, the bereaved are still waiting for at least some sense of closure from that terrible night. Sir Martin and his counsels have been working diligently in pursuit of the truth, and they have already laid bare the opportunities missed by the Government and others, as well as exposing cut corners and wrongdoing on the part of several other organisations. We now need to ensure that we take seriously all the inquiry’s recommendations when it concludes.

    I reiterate my humble appreciation of the way in which the bereaved and survivors have stoically campaigned for justice and reform. Their dignity and strength continues to inspire us all. They have been let down. No words and no apology could possibly make up for these failings, but I echo the comments made by my right hon. Friend the Secretary of State in the debate last week when he said that we are sorry. For my part, I am sorry.

    We are committed to making things right by fixing the building safety regime that badly failed those at Grenfell on that night through the Building Safety Act, by implementing the toughest and most stringent fire safety standards through the Fire Safety Act, and by putting residents at the heart of a reformed social housing sector through our Social Housing (Regulation) Bill. We are not naive about the scale of the challenges that remain and, as has been rightly pointed out in this debate, we still have a long way to go on several issues.

    I do not want to cover the same ground as last week’s debate, but I will mention some of the comments and contributions that were made today. In congratulating the hon. Member for Leeds East (Richard Burgon) on securing this debate, I acknowledge that he and I agree on almost nothing politically, but we are united in our determination to ensure that a tragic event like Grenfell Tower genuinely never happens again. He called for an annual debate, as did the hon. Member for City of Durham (Mary Kelly Foy), and my understanding is that the Secretary of State committed to that during the debate last week.

    The hon. Member for Hammersmith (Andy Slaughter) asked why the debate did not take place on the anniversary of that terrible event. Clearly, partly, that was because the Grenfell bereaved and survivors could attend the debate last week. They were invited to, and they did—there were two rows of them in the Gallery—and the Secretary of State and I met them before the debate. It would have been inappropriate for us to have it on the same day that they were holding events in other areas to commemorate it.

    Touching briefly on the technical point that the hon. Gentleman made with regard to electrical surveys that will be carried out and whether properties of other tenures will be caught up in that, we are going to consult so that we can understand some of the complexities he described where there are multiple tenures in a single building as to what would be the most appropriate position to take.

    I thank my hon. Friend the Member for Kensington (Felicity Buchan) for her support—I am incredibly grateful to her. I have recently done a lot of engagement with the Secretary of State. We have held a number of town hall meetings giving the opportunity for people to come in, for several hours if necessary, to speak to me and the Secretary of State to discuss their concerns and make their case.

    I thank my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) for putting on record his recommendations, which I am sure will be given serious consideration.

    Sir Bernard Jenkin

    Will my hon. Friend undertake to arrange a meeting between Keith Conradi, Nick Raynsford and me and the Secretary of State? We have not met the current Secretary of State, and we met a Lords Minister who has now changed, so we feel that we need more engagement with Ministers about this. I would be very grateful if he could undertake to arrange that meeting.

    Eddie Hughes

    I would be very happy to speak to the Secretary of State’s diary secretary on my hon. Friend’s behalf.

    The hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) made an important point about the memorial that may follow on-site. The Grenfell Tower Memorial Commission will ensure that the bereaved, survivors and, indeed, north Kensington residents lead decision making on the long-term future of the site.

    Members have mentioned the pace of justice, and I recognise the importance of that to the families seeking justice who have already had to wait so long. The police, the CPS and the inquiry must rightly remain independent from Government. The police are keeping families updated and over the weekend issued a public update on their progress. It is also important that those affected by the tragedy can fully participate in the inquiry. As such, we have made a fund for legal expenses available to witnesses and to the building safety review’s core participants.

    Of the 46 recommendations made in phase 1 of the report, 15 were directed to the Government. The majority have been addressed by the laying of the Fire Safety (England) Regulations 2022 and by the Building Safety Act. The remainder are being considered by a Home Office consultation that runs until 10 August. I urge all Members to contribute to that, not least because it will include reference to PEEPs—personal emergency evacuation plans—and it would be good to get contributions from Members across the House.

    With regard to the pace of remediation, the building safety reset announced by the Secretary of State in January is galvanising activity across the board. The industry is gearing up to play its part, and over 45 developers have now pledged to remediate unsafe buildings that they developed. We are working rapidly to turn those pledges into legally binding contracts, and our goal is to get these out of the door before summer recess. In many cases, developers who made a pledge are getting on with it, contacting building owners and leaseholders and lining up surveyors to carry out assessments and prioritise work. For the 11-to-18 metre remediation scheme, in signing the pledge, developers have committed to working at pace with Government to finalise arrangements and commence remediation or mitigation work, as necessary, as soon as possible. We will announce further details of the launch of the 11-to-18 metre remediation fund shortly.

    Jeremy Corbyn

    I am interested in what the Minister says about the remedial works being done. What compensation will be made available to people who, as I outlined, have paid unbelievably excessive levels of insurance, through no fault of their own, and are seriously out of pocket and unable to continue doing so?

    Eddie Hughes

    I cannot speak to compensation, but I can say that the Department is in regular touch with the financial services industry to talk to it about the cost of insurance products and to do everything to ensure that it takes a balanced and proportionate approach so that those costs come down.

    On the comments made by the hon. Member for Greenwich and Woolwich (Matthew Pennycook) on the work of the regulator, I ask him to meet the Housing Minister to discuss this in detail, because we are very keen to see progress made on a cross-party basis.

    As a Parliament, we cannot and will not ever forget the events of 14 June 2017. The moving tributes of the past few days commemorating the lives lost and indeed lives shattered have brought home the responsibility for all of us to do right by the victims. I am certain I speak for every Member of the House when I say that we must never go back to where we were before this tragedy. Our job as parliamentarians is to make sure we never do. The magnitude of what happened at Grenfell Tower demands that we all try to find a way to put politics aside, and I believe we are already making progress in that direction.

    When we one day look back at what followed the tragedy, one of the defining parts of the post-Grenfell era will be what we did to replace a broken building safety system with one of the most rigorous and robust building safety regimes in the world. But the job is not done—we know we still have a long way to go—so we must redouble our efforts to finish the job we started and deliver justice for the survivors of the tragedy, forcing the industry to take collective responsibility for the safety defects it created. As Members of this House we can rightly expect that we will all be judged not by our words, but by our actions to fulfil our promise of making sure that everyone lives somewhere safe and secure and that they can be truly proud to call home. That will be our ultimate tribute.

    Richard Burgon

    I thank all hon. and right hon. Members who have contributed to this very important debate. I am glad that the Government have committed to an annual debate on this in Government time.

    I hear the Minister say that he and the Government will take seriously every recommendation from the inquiry, but I would like the Government to commit to implement every single recommendation, not just to take them seriously. I would like the Government to revisit their decision and overturn their rejection of personal evacuation plans. I would like the Government to help all people hit by the cladding crisis and surely, as we have heard from other Members, the cladding companies should pay. We need a commitment that no one in this country will live in a fire-unsafe home, and we do need the urgent implementation of the Hillsborough law, because the duty of candour from public authorities is so important.

    Along with other Members, I was on the very moving memorial walk the other night, and we sensed the unity. I want to pay tribute to Councillor Emma Dent Coad, who has continued to pursue this injustice and advocate for local residents in the community in which she lives.

    I want to finish with two brief quotes. One is from the journalist Peter Apps, who wrote in a recent article:

    “What has emerged is a profoundly depressing portrait of a private sector with a near psychopathic disregard for human life, and a public sector which exists to do little more than serve or imitate it.”

    However, I want the final words of this debate, fittingly, to be from the families, the bereaved and the survivors of Grenfell United, who said:

    “We must pave a new way forward. We must hold those responsible to account.”

  • Matthew Pennycook – 2022 Speech on Fifth Anniversary of Grenfell Tower Fire

    Matthew Pennycook – 2022 Speech on Fifth Anniversary of Grenfell Tower Fire

    The speech made by Matthew Pennycock, the Labour MP for Greenwich and Woolwich, in the House of Commons on 16 June 2022.

    It is a privilege to respond for the Opposition in this important and timely debate. I commend my hon. Friend the Member for Leeds East (Richard Burgon) for securing it and the Backbench Business Committee for granting it. In so doing, they have given the House not only the opportunity to appropriately mark the fifth anniversary of the Grenfell Tower fire, but a chance for us to properly reflect on its aftermath and what could be, but is not yet its legacy.

    It has been an excellent debate, and I thank all those Members who have taken part. We have had a series of incredibly well-informed and powerful contributions. On behalf of those on the Opposition Benches, I put on record once again the admiration we feel for the survivors and the bereaved, and for the wider Grenfell community. In the face of unimaginable loss, their pursuit of justice for their families and neighbours and their dedication to securing wider change command enormous respect.

    The events of 14 June 2017 were, as many have said today, horrific. The fear that the residents of Grenfell Tower must have felt on that night is inconceivable. The loss of 72 innocent men, women and children is something we must never forget. The fire is frequently referred to as a tragedy. I personally have never been convinced that is quite the right word to describe the horror of Grenfell, because labelling it as such implies that it happened not only unexpectedly, but entirely by chance, yet we know that what happened could have been avoided. It could have been avoided if shortcuts were not taken when it came to safety, if the countless reckless and unforgivable decisions made by some of those within the product manufacturing and construction industry were not taken, and if repeated warnings, including those expressed, as so many Members have said, by the residents of Grenfell Tower themselves, had not gone unheeded. But they were, and it is the survivors, the bereaved and the community who must forever live with the consequences.

    Doing so is made all the more difficult by the knowledge that those guilty of wrongdoing have not yet been punished. Many Members have rightly raised that point in the debate. While we can never fully appreciate the grief that those who were directly affected have experienced, I can understand the fury that they must feel as they watch the Grenfell Tower inquiry continue day after day to relentlessly expose a catalogue of malpractice and negligence. While we recognise the need to await the conclusion of the inquiry before it is determined precisely what steps must be taken, I can understand the frustration that they evidently feel—it was palpable on the silent walk on Tuesday—that the prospect of justice feels more distant than ever.

    When it comes to the question of justice, it is our responsibility as Members of this House to recognise that the fire at Grenfell Tower was not simply the result of pernicious industry practice; it was also the product of state failure—the failure of successive Governments in presiding over a deficient regulatory regime and ignoring repeated warnings about the potentially lethal implication of that fact. The Government have a duty to ensure that everyone lives in a safe home. Sadly, while there has undeniably been progress toward that end over the past five years—and a quicker pace of progress over the past nine months, for which I give the Minister and his colleagues due credit—this debate has highlighted the serious concerns that remain.

    Time does not permit me to respond to all the pertinent issues that have been raised during this debate, from the failure of the Government to implement all the recommendations from phase 1 of the inquiry, to the ongoing impact of the building safety crisis on blameless leaseholders in privately owned buildings and on social landlords. I therefore want to use the time I have left to pick up two particular issues raised in the debate that are incredibly important for how we go forward: the functioning of the new building safety regime, which was raised in considerable detail by the hon. Member for Harwich and North Essex (Sir Bernard Jenkin); and the extent to which the wider post-Grenfell building safety crisis has been comprehensively resolved.

    When it comes to the new building safety arrangements, the Building Safety Act comes into force in 12 days’ time, but the practical implementation of the new arrangements is just as important as what the legislation itself provides for, and in that respect, we have real concerns about whether the new regime will be able to function effectively. In particular, we remain unconvinced that the new Building Safety Regulator, which the Act makes responsible for all aspects of the new framework, has what it needs to perform all the complex tasks assigned to it.

    Take the issue of indemnity insurance for approved inspectors. The Minister will be aware that as a consequence of a late Government amendment to the Bill, the current Government-approved scheme comes to an end next month, yet there is no sign of an appropriate alternative arrangement being put in place to protect the public and the public interest. Indemnity insurance may seem like an incredibly technical matter, but it is nevertheless integral to the proper functioning of the new regime, and on this and a number of other pressing issues it simply is not good enough for the Government to pass the buck to the new regulator without providing it with the necessary support, as is clearly the case.

    The Government will have to do more in the months ahead to ensure that the regulator can carry out its functions effectively, not least because the second phase of the Grenfell inquiry will almost certainly produce recommendations that place additional pressures on it. When he responds, can the Minister update the House on what more his Department is prepared to do to assist the regulator to discharge the duties the 2022 Act places on it?

    Sir Bernard Jenkin

    I would go further than the hon. Member. The concept behind the architecture in the Building Safety Act is still not adequate. There are conflicts of interest for building control surveyors, and there is the complete lacuna of independent incident investigation. Would he undertake to allow Nick Raynsford, Keith Conradi and me to come and brief the Opposition Front-Bench team on this matter, so that they understand our submission to the Grenfell inquiry fully?

    Matthew Pennycook

    I am more than happy to meet the hon. Member and the other individuals he cites. I agree that there are gaps and deficiencies in the new regime, and I agree in particular that there is a conflict of interest with the Health and Safety Executive being the body that investigates major incidents. If those incidents were in in-scope buildings, it would be investigating the regulator that sits inside it, but there are also conflicts in building control, as he rightly raises.

    When it comes to the wider building safety crisis, alongside its impact on blameless leaseholders, the overall pace of remediation is arguably the most pressing concern we face. It is agonisingly slow. In the debate that took place last week on social housing and building safety, the Secretary of State openly admitted what has been patently obvious for some time to any Member dealing with cladding casework, namely that the building safety fund

    “has not been discharging funds at the rate, at the pace and in the way that it should”.—[Official Report, 9 June 2022; Vol. 715, c. 974.]

    Despite Members from across the House having repeatedly expressed concerns about that fact with Ministers over a considerable time, little has seemingly been done to expedite the processing of applications.

    The result is that of the 3,462 non-ACM-clad privately owned buildings over 18 metres that have made applications to the fund, remediation works have begun on only 259 and have been completed on just 30. Can the Minister tell us what is being done to expedite decisions on those applications not yet determined? As one would expect, given that it was established earlier and its scope is far more limited, better progress has been made in remediating ACM-clad buildings via the building safety programme, with 78% having been completed, but five years on from the Grenfell fire, how can it be the case that 55 residential buildings still have deadly Grenfell-style ACM cladding on them, and 16 of those have not even begun to remove or replace it?

    Of course, in both those cases, the figures I have cited relate only to high-rise buildings over 18 meters. By its own estimate and published figures, the Department believes that there are likely to be between 6,220 and 8,890 mid-rise residential buildings that require full or partial remediation or mitigation to alleviate life safety fire risks. I suspect that the real numbers are far higher.

    The bottom line is that if the Government do not accelerate markedly the pace of remediation across the board, we are likely to find ourselves marking the 10th or even 15th anniversary of the Grenfell fire while still bemoaning the fact that some unsafe buildings require fixing. It is essential that the Government continue to be urged to address those failures and the others that have been raised in the debate, because honouring the lives of the 72 involves not just commemoration, but the building of a fitting legacy, as other hon. Members have said.

    As Grenfell United made clear in the statement it released on Tuesday to mark the fifth anniversary, the survivors, the bereaved and the community want those who were lost to be remembered not for what happened, but for what changed. Not enough has changed over the last five years and it is beholden on the Government to go faster and, in many cases, further so that everyone has a secure, decent, affordable and safe home in which to live.

  • Mhairi Black – 2022 Speech on Fifth Anniversary of Grenfell Tower Fire

    Mhairi Black – 2022 Speech on Fifth Anniversary of Grenfell Tower Fire

    The speech made by Mhairi Black, the SNP MP for Paisley and Renfrewshire South, in the House of Commons on 16 June 2022.

    I start by echoing the sentiments of everybody in this debate. Everyone has spoken respectfully and it has been quite humbling to sit and listen to the memories of people, and I am not just thinking of the survivors themselves.

    The truth is that the inquiry so far makes really quite difficult reading, because it lays bare the level of incompetence, cronyism and indifference shown at both a corporate and governmental level. It is becoming clear that the manufacturers who made the cladding knew it was flammable, but ignored the tests proving it. There are claims that fire tests were rigged to look better and texts from employees seemingly openly joking about the mistruths their companies told. Overall, the inquiry is littered with evidence of a complete lack of knowledge, experience and regard for safety among those responsible for the tower’s refurbishment.

    As if residents living in a highly flammable building was not bad enough, we now also know that the organisation responsible for maintaining the building also utterly failed in its duty to do so. With a backlog of hundreds of incomplete maintenance jobs arising specifically from fire risk, it failed to repair and inspect fire doors. As a result, on that fateful night, smoke and fire ran rampant throughout the place.

    For years, residents repeatedly complained about how unfit the building was, and specifically about the risks of fires. Yet they were ignored and palmed off time and again. It has been said by a few hon. Members, particularly the hon. Members for Hammersmith (Andy Slaughter) and for City of Durham (Mary Kelly Foy), and by the survivors themselves, that had the residents been majority white and wealthy the response would have been completely different—and they are absolutely right. The fact that that is held as an open fact that everyone is aware of, whether we talk about it or not, shows just how deeply embedded the problem is.

    As the hon. Member for Westminster North (Ms Buck) said, the treatment of survivors after the disaster is grotesque in itself. At every single stage, from when the fire first started right through the five years until now, those people have been failed at every single turn by the very people who should be helping them.

    The reason often given, which is quoted throughout the inquiry, is cutting costs; I think it was the hon. Member for City of Durham who made that point. Time and again, we see the company saying that flammable material was used because it was cheaper—it was to cut costs. Because of cost cutting, the council inspector responsible for ensuring the safety of the project had 130 other projects to keep an eye on at the same time. Our emergency services are stretched beyond their limit in the name of cutting costs.

    If someone told me that this fire happened in 1917, and that we were here as a memorial to remember the tragedy that instigated health and safety laws, I could believe that—but it did not. It happened in 2017. We are supposed to have health and safety. We are supposed to have standards. Yet, five years on, it seems that nobody, particularly in Government, is actually that bothered by it. There has been no accountability, and the companies are still receiving profits from this entire saga.

    Right now, we have half a million people still living in a building with some form of unsafe cladding. Officials still do not know how many buildings of four storeys or more could be at risk. The Government are yet to implement the majority of the recommendations from phase 1 of the inquiry, and as we have heard they have already rejected the idea that building owners should be responsible for evacuation plans for disabled people.

    While I accept, and I truly do, the warm wishes and the real desire to never see this kind of tragedy happen again—I do appreciate the sentiment—no matter how well-intentioned they are, words and platitudes do absolutely nothing. This tragedy started long before any fire. As the hon. Member for Hammersmith has said, if we are to be serious about this, and if we are to respect those who lost their lives, what is required is action, because it is action that makes the difference. We should take that action, learn from history, as we are supposed to, and reflect and respond, because otherwise—I agree with the hon. Member—as things stand, I fear there is every chance this will happen again.

  • Margaret Ferrier – 2022 Speech on Fifth Anniversary of Grenfell Tower Fire

    Margaret Ferrier – 2022 Speech on Fifth Anniversary of Grenfell Tower Fire

    The speech made by Margaret Ferrier, the Independent MP for Rutherglen and Hamilton West, in the House of Commons on 16 June 2022.

    I congratulate the hon. Member for Leeds East (Richard Burgon) on securing today’s debate and on circulating the briefings to help ensure that Members were well prepared to speak.

    Tuesday marked five years since the tragedy at Grenfell Tower, and I want, first and foremost, to pay tribute to the 72 people whose lives were lost—men, women and children who were taken from their family, friends and neighbours far too soon and in the worst way. For those who knew them and loved them, their grief will never leave them. The trauma suffered by the survivors also weighs heavy here today. I cannot even begin to imagine how difficult this anniversary is for them every year, with the painful memories and emotions with which they have to live. On this anniversary, I have been keeping the survivors, the victims and their loved ones in my thoughts, and I am sure that the people of Rutherglen and Hamilton West have been doing the same.

    What is so striking about the events of 14 June 2017 is the way that it resonated with so many of us, and the way that it still does today, half a decade on. London immediately entered a collective mourning for its lost residents. The entire United Kingdom mourned, and, as inquiries and investigations began, we all realised that the UK was sitting on a ticking time bomb. The disaster could have happened in any number of similar buildings across the nation.

    Late last year, Channel 4 aired a documentary on the events at Grenfell, which was deeply emotional. I spoke in Westminster Hall not long after it aired, and I will reiterate today one of the key messages that I took away from the programme. It was desperately sad to understand that residents in Grenfell Tower felt that this had happened precisely because they were living in social housing.

    They felt unseen and unheard, overlooked until the very worst happened, because of the outdated stigma that exists around council housing and the people who might live there. Having learned what we now know, the fact that it was social housing was a huge contributing factor in why costs were cut and existing concerns were not addressed.

    As I have said before, social housing is one of the great privileges of living in the UK and it should see investment reflective of that. No one should have to live in a home with potential safety risks just because it is a council property. While the Building Safety Act is a necessary milestone in improving the building safety system, the job is not done. There is work still to do and, for so many, justice to be done.

    Grenfell Tower and the surrounding community were just like many areas of London and indeed the UK: dynamic, talented, culturally diverse and economically deprived. As Imran Khan pointed out at the Westminster Abbey memorial this week, 85% of those who died that night were people of colour. That is not an accident or coincidence; it is symbolic of the many levels of discrimination that the UK still grapples with. It is important to recognise that fact, to think about all the reasons behind it and to acknowledge it so that we do not see it repeated.

    Imran Khan also said that many of the survivors and the families of victims have told him personally they have little faith in the public inquiry or the political appetite to act on its findings. They despair at the inquiry’s reluctance to face head-on so many aspects of this tragedy that are crucial to understanding what happened: the impact of race, class and disability. Even that service at Westminster Abbey faced criticism from some families of the victims for its lack of inclusivity of families from different cultures or faiths.

    On Monday, The Times published a short note, penned by Natasha Elcock of Grenfell United, Kamran Mallick of Disability Rights UK, and Sarah Rennie and Georgie Hulme of CladDAG, in which they highlighted that 40% of disabled residents died that night. None had evacuation plans. The note pointed to the Government’s refusal to place a legal duty on building owners to provide personal emergency evacuation plans for disabled residents following the inquiry. That shows lack of regard for disabled people. What message does that send?

    I hope the Minister will respond to that point in his closing speech, and I hope that it will be a substantial response. This is 2022, and the world has moved on from the times when a disabled person was seen as less important. They are just as entitled to respect as anyone else, and to peace of mind in the safety of their homes.

    Grenfell Tower still stands, a looming presence, a husk of the building it once was both physically and sentimentally. It represents something much larger than its physical size—the ignored red flags and warning signs predating the tragedy by years, the awfulness of that summer night in 2017, and the inequality and injustice that led to the fire.

    The failure to look at similar tragedies and learn from them is one of the hardest pills to swallow. In fire after fire, we know that cladding was the contributing factor. The Garnock Court fire in Irvine in 1999 was a moment of realisation in Scotland and led to the immediate removal of that cladding on all buildings. There were also the fires in Knowsley Heights in Merseyside in 1991 and Lakanal House in London in 2009. The all-party parliamentary group on fire safety and rescue raised concerns in this area for years with a number of Ministers, but they fell on deaf ears.

    I take this opportunity to pay tribute to our late colleague and chair of the APPG Sir David Amess, who was a vocal advocate for fire safety and championed the cause regularly in this Chamber. The APPG, of which I am a co-vice chair and which is chaired by the hon. Member for Harrow East (Bob Blackman), has today provided a statement setting out its position on current policy. I hope the Government will take note of the points made and consider them closely.

    Nothing will ever bring back those lost. Nothing will ever erase the pain for those who loved them. But the Government cannot ever allow this to happen again. Whatever recommendations are made, they must be implemented whatever the cost. In memory of the 72 victims of Grenfell Tower, whatever happens to the building now must be agreed with the survivors and the bereaved. It should be a fitting tribute, a memorial that keeps in clear focus the events of that dreadful night so that it is never, ever forgotten.