Category: Housing

Rachael Maskell – 2022 Speech at the Sir David Amess Summer Adjournment Debate

The speech made by Rachael Maskell, the Labour MP for York Central, in the House of Commons on 21 July 2022.

I, too, wish to pay tribute to Sir David Amess and the indelible mark he left on this place. His family called for a legacy of kindness and love across Parliament. I think we still have some way to go on that journey, but he was never afraid to speak truth to power, which I trust I will do today. It is an honour to follow the hon. Member for Mid Sussex (Mims Davies). I, too, will be picking up on the issue of housing in my speech.

Normally, we enter the summer with relief, but this year it is different. We have chaos across Government and across the country. The scale and depth of the multiple crises is weighing heavy on my constituents: it is taking five years to see an NHS dentist; GPs are under unbelievable stress and struggling with demand, with appointments now being issued for 16 August, with nothing before; we have the elective surgery backlog; we have the mental health crisis— I do not know where to begin there—covid is, yet again, dangerously on the rise; children’s social care is unable to meet demand; children are in dilapidated schools; we have the courts backlog; we have the passport backlog; we have the Driver and Vehicle Licensing Agency backlog; we have the visa backlog; we have a climate crisis; we have an economic crisis of inflation at 9.4% today; and we have a cost of living crisis. After 12 years, this is what the Tories have given our country. We are in meltdown, not just because of the temperature, but because of the temperature of what is coming out of the policies of this Government. It is left to us as constituency MPs to pick up the pieces.

Today, however, I want to focus on the biggest crisis facing York: the housing crisis. Having spent weeks on the Levelling-up and Regeneration Bill Committee, it is clear that the Government are yet to get to grips with the housing crisis and the solutions that are needed. My amendments have focused on addressing the lack of community voice in planning and matching need to what is being delivered in housing. It does a disservice for Government because, as they set these targets, if they are building not to need but to the market, they are unable to deliver also.

My city should be the very best place to live. We know its assets. People visit it and it is a wonderful city, with amazing people living there, but it is rapidly turning into a complete nightmare. The Airbnb market is surging in York. Short-term holiday lets are moving up at a rapid pace. Just a couple of weeks ago, we had 1,999; today we have 2,068. The number is rising rapidly as people are seeing the opportunity to make money out of my city. We have a rise in second homes and empty homes, but I wish to focus on the issue of Airbnbs and what is happening across the housing economy. We are seeing an extraction economy, instead of an investment economy—housing, money and opportunity extracted from my constituents, instead of investment in housing, people and communities for the long term.

This issue needs to be addressed urgently. It is disrupting the economy. We are unable to recruit to the care sector or to local jobs. It is undermining local businesses, such as B&Bs and guest houses. It is having a significant economic impact, but it is also hollowing out rural communities. Some places have only one place to let, but in York the Airbnb and short-term holiday lets market is turning family streets into party streets, and I can tell the House that it is not pleasant when there is a hen do next door every single weekend.

Section 21 notices are being issued at such an alarming rate that my constituents are being forced out of the city because there is nowhere else for them to live. Instead of getting an average—and it is high—£945 per calendar month for renting a property, landlords can make £700 over a weekend. Cash buyers, mainly from London and the south-east, are buying up swathes of housing in York in order to make money, but not to provide the housing that we desperately need. We have a real crisis in social housing and affordable housing. Couples who have saved for their first deposit are not getting the opportunity to buy because cash buyers are putting down up to £70,000 in addition for each property. The York Central development, which should be transformative for my city, risks becoming Airbnb central, with 2,500 units being built but probably not lived in by people from my local community.

We need the Government to get a grip. I will be bringing forward a Bill in December, and I trust that the Government will get behind it, because we need to license these properties and ensure that we have local homes for local people.

27/07/2022
Mark Francois – 2022 Speech at the Sir David Amess Summer Adjournment Debate

The speech made by Mark Francois, the Conservative MP for Rayleigh and Wickford, in the House of Commons on 21 July 2022.

It is an honour to follow the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier), the redoubtable Chairman of the Public Accounts Committee, on which I also serve. I entirely empathise with her points about passport delays.

Let me begin by thanking Mr Speaker, the Leader of the House and the House authorities for very kindly naming this debate in memory of my great friend Sir David Amess, who remains sorely missed across this House, not least by me. This was already known unofficially as the Sir David Amess debate because of the inimitable style in which he conducted it, but it is wonderful to know that what was unofficial is now official, and I simply say thank you.

Before the House adjourns for the summer recess, I wish to raise a mere four issues. First, my hon. Friend the Member for Southend West (Anna Firth), who now represents part of the new city of Southend, has been campaigning hard for the release of Government funding to help expand capacity at Southend Hospital. I—along with my hon. Friends the Members for Rochford and Southend East (James Duddridge) and for Castle Point (Rebecca Harris), have been supporting her in her campaign. I was delighted to hear only this morning that she has apparently been successful in her efforts, and that the funding is now very close indeed to being released. This sum, totalling over £7 million, will pave the way for a much-needed expansion in capacity, so I hope it will go some way to help ease the considerable pressures on Southend Hospital and the ambulance service. I think that Sir David Amess would have welcomed this crucial funding, too, and, knowing him, I think he would immediately have asked for more.

Secondly, I very much welcome the fact that Rochford District Council has recently announced that it will reopen the popular Mill Hall arts and community centre in the heart of Rayleigh in September. This has been an issue of considerable concern to many of my constituents, and I thank the council, led by Councillor Simon Wootton, for doing the right thing. In the longer term, I understand that the council is now looking at plans to materially refurbish the Mill Hall, and perhaps even extend the building slightly in order to provide some new facilities. Only yesterday, the council began a community engagement programme to invite interested parties to bid to run the Mill Hall in the future. I very much hope that the council will also launch a further detailed consultation once the refurbishment plans have evolved, so that all of my constituents in and around Rayleigh can have their say, as this is an issue that really matters in the town.

Thirdly, I turn to the Home Office’s initial proposals to house cross-channel asylum seekers at the Chichester Hotel near Wickford. I have received a considerable number of emails about this plan from very concerned constituents. Let me put firmly on the record my strong opposition to these misguided proposals. Many constituents have raised worries about the hotel’s conditions, previous cancellations of events there without proper reimbursement, and, most alarmingly, staff redundancies with little or no notice. There have also been worrying allegations, including by former staff, concerning irregularities in the payment of tax and national insurance by the hotel management.

I have attempted via my office to contact the owners of the Chichester Hotel on multiple occasions to seek urgent answers to those very alarming suggestions, yet they continue to ignore requests for clarity and answers from me, as the locally elected MP, and, indeed, from the local and now even national press. Given all of that, I have requested an urgent meeting next week with the Minister for Immigration, in which I will seek to ascertain the exact details of these initial proposals, alongside taking the opportunity, in my usual understated manner, to raise my objections face to face.

We must tackle the vile industry of people trafficking across the channel. It is a form of moral blackmail and has led to many sad deaths already. In the medium term, I believe that we must use the arrangements with Rwanda to break the business model of these awful human traffickers, in which case accommodation such as that at the Chichester would no longer be required.

Fourthly, Sangster Court is a sheltered housing unit in Rayleigh, run—allegedly, at least—by Notting Hill Genesis. This housing association has frequently increased the charges that the elderly residents have to pay, even once charging one resident 79p for depreciation on a communal sofa. This is why some people now refer to the building as “Gangster Court” instead. On top of this, Notting Hill Genesis has consistently had a poor maintenance record. For example, it recently left the building’s communal TV aerial broken for three weeks, despite frequently milking the residents of ever-increasing charges. I can only express the hope that Notting Hill Genesis will soon be overtaken by a larger and more professional housing association that will do a much better job for my constituents.

Finally, it is a great pleasure to see the Deputy Leader of the House of Commons, my hon. Friend the Member for Wellingborough (Mr Bone) at the Dispatch Box. I think he knows already that I got married recently to a wonderful girl called Olivia, and what Mrs Francois wants to know is: can he promise me, all of Sir David’s friends and colleagues and this House that this will now be known as the Sir David Amess debate forever, because I think that that is the answer we would like to hear?

27/07/2022
Greg Clark – 2022 Article on Protecting Leaseholders

The article written by Greg Clark, the Secretary of State for Levelling Up, Housing and Communities, published in the I newspaper and issued as a news release by the department, on 13 July 2022.

Writing for i, Levelling Up Secretary Greg Clark announces that contracts to turn the building safety pledge into legally binding requirements have been sent to major housebuilders to be signed within a month.

Just under 4 weeks ago, we marked the 5th anniversary of the Grenfell Tower tragedy. That devastating tragedy should never have happened and nothing like it must happen again.

To achieve confidence in this requires far-reaching action by many people and organisations: government, parliament, local councils, regulators, fire and rescue services, housebuilders, insurers, building owners, construction product manufacturers, contractors and many more.

Progress has been made, though it has taken too long. Nevertheless, it is now becoming irreversible. The Building Safety Act came into force last month – the biggest reform to building safety in a generation. Leaseholders are now protected in law from unfair bills to make their homes safe, and a rigorous regulatory regime will bring order to decades of lax practice.

My predecessor, Michael Gove, was absolutely right in his drive to ensure that companies should fix the buildings they played a part in constructing. A landmark agreement has seen a majority of the UK’s major housebuilders pledge an estimated £2 billion to this end. That pledge was given to the house building industry in March and there have since been over 45 signatories. I welcome the proactive approach taken by those developers like Barratt that have gone beyond the commitments in the pledge.

But it is time these commitments are put into force.

I will today publish the contract that will turn that pledge into legally binding undertakings.

I will make it available for comment for 4 weeks, after which the contract will be finalised. The faithful translation of these pledges into action is essential to the reputation for dependability that such an important sector of our economy must maintain.

Nor will there be backsliding on the £3 billion building safety levy. The taxpayer is contributing £5 billion towards fixing those buildings which have been left orphaned by absentee developers: the industry must pay its share too. The levy will be raised against all qualifying projects in England, and companies and firms who headquarter themselves overseas will pay it, as well as home-grown developers. Ensuring that this funding is available to all affected buildings is essential to re-building confidence in the sector. The approach to industry contributions and leaseholder protection has the strong and unambiguous support of all parties in parliament.

The Building Safety Act has given strong powers to disrupt the business of those developers that do not deliver on their pledge. Parliament rightly expects that the powers it has legislated be used unflinchingly, and they will be. The new Act also gives us new tools to pursue those who have contributed to this problem, not just housebuilders. I have instructed my department’s new Recovery Strategy Unit to target any individuals or companies – not just developers, but freeholders, product manufacturers, and contractors, wherever they register themselves – that do not step up to do what is required of them. For those large developers yet to commit to doing the right thing, it is time to step up and be prepared to pay up. As we identify more developers responsible for fire safety defects in buildings, I expect them to follow suit and take responsibility for repairs – and to do so quickly.

During the months and years ahead, we have an opportunity to have a productive partnership between housebuilders, the government, local councils and housing associations. I want to increase housebuilding and the most straightforward way is with existing housebuilders. I am proud that when I was a minister in this department for the first time, the National Planning Policy Framework (NPPF), which I led, galvanised housebuilders, increasing planning permissions granted from 166,000 in the year before it was published to 268,000 within 3 years of it being adopted.

Developing the NPPF, I worked closely and effectively with housebuilders as well as local authorities, environmentalists and the planning profession. It is rare to meet anyone today that does not believe the NPPF was the most significant advance in planning in decades.

It is an object lesson in how a good working relationship between all parties can achieve big results. I want this to be our approach again. But a working relationship depends on the efficient discharge of commitments given, without havering after agreements have been made.

This is true in the normal course of business and policy. In the case of Grenfell, where we have a strong moral obligation to put right the failures that robbed families of the lives of 72 innocent people, that requirement is absolute.

13/07/2022
Sadiq Khan – 2022 Comments on Millennium Mills and Silvertown Development

The comments made by Sadiq Khan, the Mayor of London, on 5 July 2022.

I am delighted to see work getting underway at this landmark East London location that has vexed planners and politicians alike for the last 40 years.

The regeneration of this area is long overdue and I’m excited by the plans for Silvertown which respect its past whilst embracing East London’s vibrant and creative future.

Not only will this project create a vibrant new neighbourhood with 50 per cent genuinely affordable homes but it will also create highly skilled jobs while supporting the regeneration of the Royal Docks as we build a better, fairer and more sustainable city for everyone.

06/07/2022
Stuart Andrew – 2022 Comments on Changing Street Names

The comments made by Stuart Andrew, the Housing Minister, on 5 July 2022.

Street names are often a proud part of a community’s identity and hold cherished memories for those that have lived there past and present.

As part of our mission to level up across the country, we want communities to take back control so we are putting the power over street names changes into the hands of local people who would be most directly affected.

Our new laws will stop councils pushing through street names changes that communities don’t want.

06/07/2022
Eddie Hughes – 2022 Statement on the Government’s Private Rented Sector White Paper

The statement 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.

The Government have today published their White Paper “A fairer private rented sector”.

The private rented sector currently offers the most expensive, least secure, and lowest-quality housing to a growing number of vulnerable people, including 1.3 million households with children and 382,000 households over 65. This is driving unacceptable outcomes and is holding back some of the most deprived parts of the country.

Many renters face a lack of security as they can be evicted without a reason at just two months’ notice (so called “no fault” section 21 evictions, under the Housing Act 1988). This means many tenants do not challenge their landlords or agents on standards. Renters also feel that they cannot put down roots in their local areas, which does nothing for community cohesion.

The system does not work for good landlords either, the majority of whom do right by their tenants and offer them a positive, secure living situation. They lack the ability to effectively tackle antisocial behaviour or deliberate and persistent non-payment of rent. Most landlords are trying to do the right thing but simply cannot access the information they need. Further, inadequate enforcement is allowing criminal landlords to thrive, which harms tenants and reputable landlords.

The A Fairer Private Rented Sector White Paper builds on the vision in the Levelling Up White Paper and sets out our plans to fundamentally reform the private rented sector and level up housing quality in this country. It sets the strategic direction for the PRS for the first time in a generation and demonstrates our ambition and determination to give private renters a better deal.

The White Paper sets out a 12-point action plan of how we will deliver a fairer, more secure, higher quality private rented sector:

Safe and decent homes

The PRS has some of the worst housing of all tenures. We will improve this by:

Delivering on our levelling up housing mission and require privately rented homes to meet the decent homes standard for the first time. This will give renters safer and better value homes and the blight of poor-quality homes in local communities.

Accelerating quality improvements in the areas that need it most. We will run pilot schemes with a selection of local authorities to explore different ways of enforcing standards and work with landlords to speed up adoption of the decent homes standard.

Increased security and stability

For too long tenants have felt powerless and unable to challenge poor practice. We want to change this. We will rebalance the law to deliver a radically fairer deal for renters, while making sure that landlords can regain possession of their property when needed. We will achieve this by:

Delivering on our manifesto commitment to abolish section 21 “no fault” evictions and introducing a simpler, more secure tenancy structure. A tenancy will only end if the tenant ends it or if the landlord has a valid ground for possession, empowering tenants to challenge poor practice and reducing costs associated with unexpected moves.

Reforming grounds for possession to make sure that landlords have effective means to gain possession of their properties when necessary. We will expedite landlords’ ability to evict those who disrupt neighbourhoods through antisocial behaviour and introduce new grounds for persistent arrears and sale of the property.

Improved dispute resolution

Tenants and landlords need structures in place that allow them to resolve disputes efficiently and fairly. We will deliver on this by:

Only allowing increases to rent once per year, ending the use of rent review clauses, and furthering tenants’ ability to challenge excessive rent increases through the first-tier tribunal to support people to manage their costs and to remain in their homes.

Strengthening tenants’ ability to hold their landlord to account and introduce a new single ombudsman that all private landlords must join. This will provide fair, impartial, and binding resolution to many issues and be quicker, cheaper and less adversarial than the court system.

Working with the Ministry of Justice and Her Majesty’s Courts and Tribunal Service (HMCTS) to target the areas where there are unacceptable delays in court proceedings. We will also strengthen mediation and alternative dispute resolution to enable landlords and tenants to work together to reduce the risk of issues escalating.

Better compliance and robust enforcement

Landlords, tenants, and local authorities need access to the right information and, for local authorities, the right powers, to crack down on poor practice. We will deliver this by:

Introducing a new property portal to make sure that tenants, landlords and local authorities have the information they need. The portal will provide a single “front door” for landlords to understand their responsibilities, tenants will be able to access information about their landlord’s compliance and local councils will have access to better data to crack down on criminal landlords. We also intend to incorporate some of the functionality of the database of rogue landlords, mandating the entry of all eligible landlord offences and making them publicly visible (subject to consultation with the Information Commissioner’s Office).

Strengthening local councils’ enforcement powers and ability to crack down on criminal landlords by seeking to increase investigative powers and strengthening the fine regime for serious offences. We are also exploring a requirement for local councils to report on their housing enforcement activity and want to recognise those local councils that are doing a good job.

A positive renting experience

We want to improve the experience of everyone who rents in the private rented sector and will:

Legislate to make it illegal for landlords or agents to have blanket bans on renting to families with children or those in receipt of benefits and explore if action is needed for other vulnerable groups, such as prison leavers. We will also improve support to landlords who let to people on benefits, which will reduce barriers for those on the lowest incomes.

Give tenants the right to request a pet in their property, which the landlord must consider and cannot unreasonably refuse. We will also amend the Tenant Fees Act 2019 so landlords can request that their tenants buy pet insurance.

Work with industry experts to monitor the development of innovative market-led solutions to passport deposits. This will help tenants who struggle to raise a second deposit to move around the PRS more easily and support tenants to save for ownership.

We have already taken significant action to improve private renting, including significantly reducing the proportion of non-decent private rented homes, banning tenancy fees for tenancy agreements signed after 1 June 2019, and introducing pandemic emergency measures to ban bailiff evictions—these reforms will finish the job that we started in 201—and deliver a fairer private rented sector.

We have also today published the Government response to the 2019 consultation “A new deal for renting” that sets out how the new tenancy regime will work once section 21 evictions are abolished, the Government response to the “Considering the case for a Housing court: call for evidence”, and the Government response to the 2019 “Tenancy deposit reform: a call for evidence”. We will be depositing copies of these documents in the Library of the House.

We will deliver on these reforms in the forthcoming parliamentary Session, which will drive real change and make the private rented sector fit for the 21st century. These reforms will apply to England only.

18/06/2022
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.

17/06/2022
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.

17/06/2022
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.

17/06/2022
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.

17/06/2022