Short-Term Letting

Baroness Couttie Excerpts

Thursday 26th April 2018 Lords Chamber

[Lord Young of Cookham]

I fear that that goes beyond my limited knowledge of the tax system. They would certainly have to declare the income; on whether they can set off against that income the related costs of letting it, I would have thought the answer was yes. Perhaps I can make some detailed inquiries of HMRC to see which of the regimes the noble Lord referred to—particularly regarding setting off interest—is applicable to holiday lets.

[Baroness Couttie (Con)]

My Lords, I draw the House’s attention to my interests as declared in the register. In Westminster, where I was the leader until January last year, short-term lets are a major problem, in some places pushing up property prices both for let and purchase, in an area where we have very short supply of housing. As a result of that, the Government have set up a pilot with Westminster Council. I would like to understand a bit about how that is working and the details of it.

[Lord Young of Cookham]

My noble friend is quite right. There is now an umbrella organisation for these platforms called the Short Term Accommodation Association, which has developed a range of measures, including a code of conduct. It has a relationship with Westminster City Council called a Considerate Nightly Letting Charter, which sets out the responsibilities of property owners, managing agents, freeholders and building managers and seeks to raise standards in the industry. I understand that the charter, which was launched on 5 March, is being distributed to Westminster residents, so some of us will get that. Updates will follow in due course, and the Government are working with Westminster City Council to see whether this pilot should be rolled out more broadly.