Council Tax: Second Homes

Lord Kennedy of Southwark Excerpts

Thursday 4th November 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, there are a number of schemes. I have mentioned the £11.5 billion affordable homes programme; there is also the first homes scheme, which has a minimum discount of 30% but which, with local councils, can be increased to 40% or 50%, so that new homes are offered first to people who live locally. Those kinds of initiatives will help local people get on the housing ladder, which is what the vast majority of people want.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I refer the House to my entries in the register. Holiday lets, as we know, can be much more lucrative than tenancies, with landlords frequently able to bring in the income they would get over the course of a whole year from tenants in just the summer months. Small business rate relief also means that they can pay very little tax. Should the Government not do more in this area, perhaps with a larger levy, to encourage landlords to rent to tenants instead and help deal with the housing crisis that we spend so much time talking about in this House?

[Lord Greenhalgh (Con)]

My Lords, we are approaching this by ensuring that people do not game the system. It is perfectly proper, if you have a business, to be subject to the business rates regime. We have not yet finalised what that threshold will be. We are also consulting on whether there is a need for registration of these homes, as I have mentioned.