(5 years, 7 months ago)
Lords ChamberMy Lords, my noble friend makes an important point. That is why we have the consultation on Section 8. There are many instances in which it is totally appropriate for someone to be able to regain their property; he has just cited one. That is why we seek to do right by landlords in those sorts of situations.
My Lords, I will follow up on the question of the noble Baroness, Lady Gardner. While there does not appear to be an obvious link between short-term holiday lets and this proposal—which I welcome—we have seen before unintended consequences of the link between the two. It would be disastrous in many rural areas if it meant that houses currently let to local people were withdrawn from the market and used as holiday lets.
My Lords, the noble Lord makes an important point but I fail to see the connection with this proposal. He is absolutely right about ensuring that the needs of local people are taken care of as regards housing supply and affordability, but that is not impacted by this provision. However, I am happy to engage with him further on that matter.
(6 years, 5 months ago)
Lords ChamberMy Lords, my noble friend is correct to say that considerable progress has been made between the Short Term Accommodation Association and Westminster City Council on sharing information. There is a legal issue involving the Data Protection Act, which lawyers are working through, but, as I say, progress has been made. The Short Term Accommodation Association has also issued to residents in Westminster a “considerate nightly letting charter” to describe best practice, a document many noble Lords may have seen. The Short Term Accommodation Association wants to talk to other London boroughs. I think it has been in touch with the borough of Kensington and Chelsea, which I know is my noble friend’s borough, and yesterday its representatives were due to meet with the London Borough of Tower Hamlets as well to discuss these issues.
My Lords, on holiday lets, does the Minister accept that under the system being used by most local authorities there is the potential for extensive fraud, with the bill being picked up by the ordinary taxpayer? Will the Government look into this and take action to stop the process currently being used?
My Lords, I am due to meet the noble Lord to discuss some of his concerns and I look forward to that. I am not sure, but I think he is probably referring to tax treatment. We are certainly looking at tax issues in this area and related to second homes more widely. My honourable friend Rishi Sunak, the Minister in the other place, is currently looking at this. Again, I look forward to discussing some of the noble Lord’s individual concerns.
(6 years, 6 months ago)
Lords ChamberMy Lords, like anything else, short-term lets have to operate within the law. I share the noble Lord’s belief that setting up a register would be of no assistance. Issues such as gas safety, fire safety and environmental protection all apply to short-term lets, just as they do to anything else.
My Lords, not only do short-term lets pay no local tax, they basically pay no general tax. Is the Minister aware that, unlike owners of longer-term rented properties, those with short-term lets can claim 100% tax relief on mortgage repayments and 100% tax relief on improving the fabric of the property, while at the same time killing scores of villages across the country by buying up ordinary houses purely to make a short-term profit?
My Lords, I recall that I did offer the noble Lord the facility to discuss this further in relation to the Lake District and I restate that offer. I will be happy to look at the position. Businesses have to operate within the law. If they do not do so, they will have the rigour of the law applied to them. Short-term accommodation lets are in the same category and if any noble Lord has reason to suppose that they are not paying tax in the correct way, they should let me have that information. I will ensure that it is passed to the appropriate authorities.
(6 years, 6 months ago)
Lords ChamberMy Lords, I thank my noble friend for her encouragement of my short responses, followed by her two questions. Stamp duty land tax will not be payable by many people purchasing tenancies; it will be very unusual outside London, and then only at the higher-value end of the market. Any changes are clearly a matter for the Treasury. My noble friend is quite right about the need for publicity for many of these excellent schemes that we are pursuing and, quite apart from her and others’ questions, we obviously ensure that details are provided on the website and that our partners are aware of this. It is a very good story to tell: we are progressing many changes through this House and the other place in relation to the private rented sector.
My Lords, the Minister has indicated that there has been a considerable increase in the buy-to-let market. The informed newspapers say that it is drying up. Are they wrong?
My Lords, if I may slightly correct the noble Lord, I said that there was great growth in the private rented sector generally. I think it is fair to say that there has been a slowdown in the buy-to-let sector. Some of that is in response to tax changes, but I think it has stabilised now.
(6 years, 8 months ago)
Lords ChamberMy Lords, the noble Lord has gone in this direction before. It is clear that some metropolitan areas are well suited to mayors, as we have seen from Birmingham, Manchester and others developing metro mayors. Other areas do not lend themselves to that, so we would not expect one size to fit all.
My Lords, can I come to the aid of the Minister? The difference between borderlands and the others is basically that borderlands encapsulates two nations: if you had a mayor, your mayor would have to cover an area from Stranraer right down to the Lancashire border just outside Lancaster: it just would not make sense.
My Lords, I am very grateful to the noble Lord: that indeed is a distinction, but it is not the only one. They are very different in nature. One covers a much broader sweep of powers, in terms of housing, health and so on; the other is essentially business focused. Of course, the noble Lord is absolutely right that the borderlands deal does involve the south of Scotland as well as Northumberland and Cumbria, and that is another important distinction.
(6 years, 9 months ago)
Lords ChamberObviously if there is an issue between landlord and tenant, it is for the landlord to enforce that. The Government have no role in ensuring that leases are enforced. We would encourage that, but that is a matter for the landlord. It happened relatively recently in relation to a case called, I think, Nemcova in the London Borough of Barnet. There is the power to do just that—but it is, as I am sure the noble Lord appreciates, a matter of contract, not a matter in relation to the law regarding landlord and tenant. I will say, in support of what Airbnb is doing, that it is within the law because it is ensuring that there is no let of more than 90 days on its watch. I do not think that we can reasonably ask it to do more. It cannot share the data under the law; it is looking at this protocol to enable it to do so.
My Lords, although this question is related, to a certain extent, to London—but not entirely, as the Question says—is the Minister aware that in certain national parks, we are not talking about 10% short-term lets: in some villages we are talking about 50%, 60% or 70% and the local authorities have no authority at all to stop it? Will the Government look into this, because it is destroying rural communities right across the country?
I appreciate that the noble Lord is speaking about his home area. I know he speaks with authority on the Lake District. I am very happy to look at that issue if he would like to come forward and arrange to see me with some evidence. It is obviously a very different issue because there is no suggestion of a breach of the law; it is about whether there is a particular problem.
(6 years, 10 months ago)
Lords ChamberMy Lords, I do not wish to enter into a dispute between my noble friend and the Benches opposite. I recognise that on occasion there is a question of consistency from the Liberal Democrat Benches. I can see that smiles are coming even from those Benches, so perhaps they recognise the validity of the comment.
My Lords, I declare an interest as chair of the world heritage site bid and as a resident of the Lake District National Park. Would the Minister accept and restate that, as he nominated the national park for world heritage site status, which is primarily about our cultural landscape and our natural beauty, it would be inappropriate for the tourist industry to see it as merely a way to create another Disneyland?
My Lords, the noble Lord speaks with great authority, and clearly I am very much in agreement about the particular beauty and characteristics of the Lake District. As I say, I am not in a position, as noble Lords will understand, to comment on a live application—which I think will be considered by the national park authority on 7 March.
(7 years, 1 month ago)
Lords ChamberMy Lords, if the noble Lord is aware of any tax evasion, I would be very grateful to hear about it and would then pass the information on to the Treasury in the usual way. I am not aware of this being as widespread as he perhaps suggests, but obviously the Government are keen to make sure that everybody pays the appropriate taxation that is due, so I would be glad to see any evidence that he has.
My Lords, the Minister mentioned that new powers may be coming in for local authorities to tackle errant landlords. Will they include holiday lets, which cause a major problem? Often companies buy up 70% to 80% of villages, causing all sorts of social problems. Can that be brought into the raft of actions that the Government are talking about?
My Lords, I know that the noble Lord speaks with particular feeling about his area of the Lake District, and I am aware of the pressures that sometimes exist there. As he will be aware, there is separate legislation for short-term lets in London. A voluntary code has now been adopted by members of the association relating to short-term holiday lets. I think that that will make a difference and the department is looking at it very closely.
(7 years, 9 months ago)
Lords ChamberMy Lords, taking up the very relevant last point first, London boroughs have the power—indeed, the responsibility—to enforce that in their areas. The matter rests with local authorities if hosts and tenants are breaking the law on the 90-day limit—not 90 consecutive days but 90 days in any given year; they have that power. There are restrictions in New York, but it is still possible to operate there, albeit within different limits from those in London.
My Lords, does the Minister realise that the short-term holiday lets referred to in the Question are distorting the longer-term letting market in not only heavily urbanised areas but in some of the most attractive parts of the country? Is he aware how attractive this is? A modest house without a view of a lake or a hill can be let in high season for more than £3,000 a week in the Lake District National Park. There is no incentive for landlords to rent out houses to local people or people who want to work in the area on a long-term basis.
My Lords, I am aware that outside London there are undoubtedly many possibilities for the sort of let the noble Lord describes. He cited the Lake District, and there are other areas such as Bath, the Cotswolds, Oxford and Cambridge.
I am meeting Airbnb to discuss its response to the concerns expressed, which has been favourable. There are other providers as well, which I will be seeking to speak to. There are provisions in leases that can be enforced by landlords; where appropriate, there are provisions on statutory nuisance and private nuisance; and I come back to the point that within London, although not outside, the boroughs can act themselves.
(7 years, 9 months ago)
Lords ChamberMy Lords, it is interesting to speculate that as the Foreign Secretary was, as the noble Lord has said, born in the United States, that makes him, I think, eligible to stand and become President of the United States—an interesting scenario. I certainly endorse the noble Lord’s effective point about the contribution that the immigrant communities have made to this country. As the Prime Minister has indicated, that will continue to be the case: in any scenario we will still be welcoming many people to this country as immigrants.
My Lords, does the Minister realise that the Foreign Secretary renounced his American citizenship only last year and that he is therefore not eligible to stand for President of the United States of America?
But while I am on my feet, will the Minister also confirm that about 60,000 individuals from the European Union are working in our National Health Service, and that the service would collapse completely without them?
My Lords, I am grateful to the noble Lord for correcting me in relation to the Foreign Secretary. I certainly was not trying to whip up a campaign on his behalf, and I now know that there would be no point in doing that any way.
The noble Lord’s very serious point about the contribution of EU citizens—as well as of other people who were not born in this country—to public services, including the National Health Service, is well made and the Government are well aware of that.