Leaseholders: Holiday Letting

Tuesday 25th April 2017 Lords Chamber

Question

14:36

Asked by

[Baroness Gardner of Parkes]

To ask Her Majesty’s Government what plans they have to prevent leaseholders whose leases do not permit the short-term subletting of their properties from registering those properties with holiday letting firms.

[Baroness Gardner of Parkes (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare an interest as in the register.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the Government support the sharing economy. Individual leases and tenancy agreements are a matter for landlords and tenants. Tenants should always seek permission before subletting where that is contractually required.

[Baroness Gardner of Parkes]

One only wishes that was the situation. Too often, these are illegal lets, quite contrary to the tenancy agreement and the lease. Will the Minister consider, as he is still working on regulations, allowing people to have some access through the council whereby they could apply for a certificate indicating that they had the right to a short let? Then people would know that those were legal rather than illegal.

[Lord Bourne of Aberystwyth]

My Lords, the Government are not intent on interfering with freedom of contract. It is a matter between landlords and tenants. I must make it clear that we are not considering regulations in this area at all.

[Lord Palmer of Childs Hill (LD)]

My Lords, as the Minister will know, the Residential Landlords Association says that there are now 33,000 listings on the Airbnb website for holiday-type and short-term lettings. Alarmingly, 65% were available for more than 90 days a year, which is the point that the noble Baroness, Lady Gardner, is really getting at because that is in breach of planning law. Will the Minister please say whether central Government have made any assessment of what that has done to the housing market? Is it sufficient to leave it to local authorities, which do not enforce this? We make laws and we do not enforce them.

[Lord Bourne of Aberystwyth]

My Lords, breach of planning regulations is very different from the issue of freedom of contract. In relation to that matter, I have met with Airbnb. It does not now carry anyone who lets their property for more than 90 days at a time unless they have planning permission to do so. That is the company’s rule and it has contacted all those who propose to let property to let them know that. Since then, the Minister for Housing and Planning has written to all the other suppliers indicating that they should do similarly and that if there is a contractual provision they should abide by that as well.

[Lord Campbell-Savours (Lab)]

Why not just reduce the time from 90 days to a lower number?

[Lord Bourne of Aberystwyth]

My Lords, the 90-day limit was set in the Deregulation Act. Other towns throughout Europe might have different limits. Outside of London, there is no limit. Ninety days was the limit set in the Deregulation Act.

[Lord Campbell-Savours]

But that does not mean it cannot be reset.

[Lord Bourne of Aberystwyth]

No, indeed it does not, but we are not going to.

[Lord Kennedy of Southwark (Lab)]

My Lords, I refer noble Lords to my entry in the Register of Lords’ Interests. The noble Baroness, Lady Gardner of Parkes, raised an important issue. Will the Minister say a little more about why they are not prepared to act?

[Lord Bourne of Aberystwyth]

My Lords, it is very clear that it is up to individual landlords. In the case of Nemcova v Fairfield Rents Ltd in 2016, just a year ago, a landlord enforced a provision in the lease to ensure that the tenant did not act in breach of the lease. It has never been the case that any Government would interfere with freedom of contract where parties are open to go to court in relation to a contractual matter. This is not a planning issue.

[Lord West of Spithead (Lab)]

My Lords, in four years’ time Annington Homes, which controls all of the Ministry of Defence’s married quarters, will be able to reassess the cost for rent and letting these back to the MoD. There is bound to be a huge increase. Does the Minister not think that we need to look at this, because it will impact yet again on the defence boat and there will be even fewer ships?

[Lord Bourne of Aberystwyth]

My Lords, I am pleased to see that over the Recess the noble Lord has not lost his ability to get questions relating to defence under the radar, as it were. I will of course ensure that he gets a full response.

[Baroness Gardner of Parkes]

My Lords, is the Minister aware that in some cases people coming in are endangering lives and threatening long-term residents in blocks? Is he also aware—I think I have drawn the House’s attention to this before—that in New York and Berlin blocks that have long-term residents are not allowed to do short lets at all? All the short lets have to be done in places that are designated as such and therefore do not destroy the lives of people. I know personal cases where people have lived in these blocks for more than 50 years and they find that their front door is smashed and they are threatened. It is really quite a terrifying situation.

[Lord Bourne of Aberystwyth]

My Lords, the whole House will of course sympathise with the situation that the noble Baroness is in if she is suffering from these sorts of situations, but there is a whole panoply of criminal law to deal with these issues. This is nothing to do with Airbnb; it is a breach of the law relating to violence and criminal damage. It is not a matter for Airbnb. I note what she says about other cities, but that is not the provision here. The provision set in the Deregulation Act specifically for London is 90 days. If companies are acting within that, as Airbnb is, we can ask little else of them.

[Lord Kennedy of Southwark]

My Lords, the noble Baroness raised a really important issue. Why can the noble Lord not say that he will have a look at those matters?

[Lord Bourne of Aberystwyth]

My Lords, for any criminal damage, which is admittedly a very serious issue, there is of course a panoply of the law, such as the Criminal Damage Act, to deal with such a situation. Breach of contract is a matter for the landlord and tenant to sort out between them. The Government have no role in enforcing contracts.