Sharing Economy: Short-term Letting

Rachael Maskell Excerpts

Thursday 16th June 2022 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

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.

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[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Eddie Hughes)]

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.

Private Rented Sector

Rachael Maskell Excerpts

Thursday 16th June 2022 Commons Chamber

[Eddie Hughes]

The hon. Gentleman refers to the fact that a Conservative Government introduced the legislation 35 years ago. Perhaps he has forgotten that, just occasionally, the public vote for a Labour Government, so they have had the opportunity to repeal it during their time in power. I know it does not happen very often, but when they occasionally get the levers of power, they could pull them. However, the hon. Gentleman will also be aware that we have introduced the Social Housing (Regulation) Bill to the other place. That is going to make its way through Parliament and make significant changes to how the social housing sector is managed and regulated. Our intention is to drive up standards across the social and private rented sectors. Our ambition is to reduce by 50% the number of non-decent homes by 2030, across all tenures.

[Rachael Maskell (York Central) (Lab/Co-op)]

Nearly a quarter of my constituents live in the private rented sector and they simply cannot afford to do so. They do not want to be in the private rented sector, but there is not enough social stock and buying is too expensive. Therefore, they are trapped. Now not only are they seeing section 21 evictions, but, with rental costs the highest in the north, at £945 per month on average, people are having to leave the area, which impacts on the economy as well as on their lives. Will the Minister reconsider the issue of rent controls because the pace that rents are rising is forcing people out of my city?

[Eddie Hughes]

I have to be blunt and say, “Under no circumstances”—that is simply not a Conservative policy and it is not something we are going to pursue. The White Paper contains some things that will be helpful to the hon. Lady’s constituents, such as abolishing rent review clauses. Abolishing section 21 means that people should not have to move property so frequently and will save money that way. The No. 1 thing I would say, however—I keep apologising for being such a cheerleader for my boss—is that, since the Secretary of State took his post in September, he has been championing the idea that the Government should build more social housing and more properties for social rent. That is an invaluable contribution that will help her constituents.

Levelling-up and Regeneration Bill

Rachael Maskell Excerpts

2nd reading
Wednesday 8th June 2022 Commons Chamber

[Michael Gove]

I cannot comment on a specific planning application for reasons that the hon. Gentleman knows well, but I appreciate the strength of his point and will ask the Minister for Housing to engage with him more closely on both that specific issue and the broader policy points that he raised.

[Rachael Maskell (York Central) (Lab/Co-op)]

As the Secretary of State knows, York also has a Liberal Democrat-run council, and the challenge we have is that the council is not building the tenure of housing that my local residents can afford either to rent or to buy. So how will this legislation really shift the dial on affordability?

[Michael Gove]

I have a lot of sympathy for the hon. Lady and the situation in which she finds herself. I know that she is a doughty champion for York—it is a beautiful city, and a potential home for the House of Lords if it does not want to move to Stoke—and that York needs the right type of housing and commercial investment. I look forward to working with her and with Homes England, and also to consider what we can do in the Bill to deal with some of the consequences of some of her constituents foolishly having voted for Liberal Democrats at the local level.

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[Rachael Maskell (York Central) (Lab/Co-op)]

The purpose of power is to bring transformation, with transformation of communities delivering transformation of life chances. When we get that moment to bring forward legislation to tackle the burning injustices perpetuated throughout our communities, where 14.5 million people live in poverty, one third of them children, we expect Government to make the bold interventions to ensure that everyone has a sustainable home to call their own; that public land is used for public good, delivering the homes people need and can afford to live in, rather than seeing investors further their wealth; and that we build houses and high streets together to ensure that the local community is served.

I welcome the opportunity to auction off empty units to ensure that our high streets become vibrant again, and I urge the Government to look further at ensuring that spaces above shops are utilised, not just for business, but for start-ups, creatives and social enterprises and as incubator and accelerator spaces, such as those the University of York is investing in. The Government have failed to level up power between communities and vested interests in this Bill, or to provide the framework to shift the entrenched planning injustices and tilt planning towards the needs of our communities. With this Bill, we still have landowners marking time against profits and developers continuing to extract wealth from investments while denying house seekers the right to a home.

That brings me to the challenge before us. We need to get the pecking order right with housing, putting social housing at the heart of what needs to be developed, and then bringing on affordable housing so that house seekers can have the home they long for. That is what Nye Bevan did when he developed his “homes fit for heroes”, putting the power in the hands of municipal authorities and giving them the permissions and powers to build. We must learn from that in order to build to need again. I think everyone in this debate ultimately wants to ensure that we get the right tenure, in the right places, at the right price for our communities. This Bill simply does not tick that box, so we know there is more to come in terms of amendments to the Bill to make sure that that happens.

Without having value defined in the infrastructure levy, it is hard to assess the benefit it will bring. I trust that the Minister will say more about that. Take York-based Persimmon: last year it generated £3.61 billion in revenue and made just shy of £1 billion in pre-tax profits. A robust levy must demand more from those large developers, so that those who make the greatest profits contribute the most, whereas small developers have greater opportunities to grow their businesses. We need to capacity-build as well as to see a strong social return. The problem is that when addressing housing need, the Government start with numbers, not numbers combined with tenure. Their starting point is therefore market value housing, which house seekers simply cannot afford. In my city of York, we are seeing those homes turning into second homes and Airbnbs, stripping out the opportunity for people to have a home they can call their own. We need to ensure that this Bill also addresses the scourge of Airbnbs, which are shooting up everywhere.

If the starting point is first to build social housing to meet needs and ensure that house seekers get the homes that they need, this Bill will do its job. At the moment, it needs further revision, and I trust the Minister will listen to that.

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[Stuart Andrew]

The hon. Member knows that I cannot comment on individual plans. [Interruption.] The hon. Member for Wigan (Lisa Nandy) would be the first to apply for an urgent question asking me to explain why I prejudged a local plan. What I would say, in general terms, is that it is clear that local authorities can argue the constraints that they may have, and his local authority may be planning to do that; I do not know.

Let me move on, because I am conscious of time. I turn to second homes, because, if I did not, my hon. Friend the Member for North Devon (Selaine Saxby), as well as my hon. Friends the Members for St Ives (Derek Thomas) and for Penrith and The Border (Dr Hudson) and others, would be rather angry with me. We have put provisions in the Bill to try to help on that, and I know that she wants us to go further. I have made a commitment to come down to the south-west to hold a series of roundtables and see the issues for myself. We will see what else can be done as we go through the Bill’s passage.

[Rachael Maskell]

In addition to second homes, we have the challenge of Airbnbs, which of course the Bill does not mention, and yet they are blighting our communities as they take out existing stock and dominate new stock that is being built. Will the Minister look again—it is urgent—to put an amendment into the Bill to address that serious issue?

[Stuart Andrew]

In fact, I had a meeting just this morning to talk about that very issue. I will report back in due course, if that is okay.

Oral Answers to Questions

Rachael Maskell Excerpts

Monday 16th May 2022 Commons Chamber

[Stuart Andrew]

I am grateful to the Chair of the Select Committee and for the reports that fed into many of the changes we have made. He is right to raise those issues. One issue communities see far too often, and the reason why they are sometimes opposed to development, is that they do not actually get what was promised at the beginning. I am really keen that, through the Bill, we give that power back to local communities and ensure neighbourhood plans are strengthened.

[Rachael Maskell (York Central) (Lab/Co-op)]

York is being overrun by investors hoovering up our new build by either leaving those properties empty or using them for Airbnb. That is causing the market to heat up, which is having a really disruptive impact and choking off opportunity for future buyers in my constituency. How will the Minister use his planning reforms to ensure we are not just building to numbers, but to local need?

[Stuart Andrew]

The hon. Lady is right. The reforms are about empowering local communities to develop local plans and engage with the development of those local plans to identify the housing needs of each area. She is right to raise the issue on second homes and Airbnb. As I said to her the other day in the meeting we had, I look forward to potentially hosting a roundtable with her and colleagues around North Yorkshire to address those very issues.

Levelling Up

Rachael Maskell Excerpts

Wednesday 2nd February 2022 Commons Chamber

[Michael Gove]

My hon. Friend brilliantly encapsulates the challenge. The innovation accelerator will bring together representatives from the private sector—from business—as well as those in the outstanding universities that, as he rightly points out, are a feature of the west midlands in order to ensure that its manufacturing strengths can be leveraged more effectively. I look forward to working with him and others to achieve that.

[Rachael Maskell (York Central) (Lab/Co-op)]

The broken housing market is the bigger driver of inequality across York, with the boom in second homes and holiday lets. Therefore, the aspiration of the people of York is being denied. Rather than throwing us dead cats with the House of Lords, will the Secretary of State throw us a proper agenda to address the housing crisis in York?

[Michael Gove]

Three important points. First, the hon. Lady is absolutely right that there are things we need to do to tackle the housing market, in particular the second homes issue. It is complex, as she understands, but there is more that needs to be done. Secondly, I hope she will support the proposed mayoral deal for York and North Yorkshire, which I think will give some of the powers necessary to deal with the problems she mentioned. Thirdly, the House of Lords in York, or for that matter Glasgow, would be a great thing.

Second Homes and Holiday Lets: Rural Communities

Rachael Maskell Excerpts

Thursday 6th January 2022 Westminster Hall

[Tim Farron]

I thank the hon. Gentleman very much for his helpful contribution, and for his ongoing concern and interest in this issue, which is very laudable indeed. In one sense, this issue is not complex at all. If a person is forced out of their community, it is not slightly complex; it is just bloomin’ tragic. Yes, there is a planning Bill, and I look forward to that. I might feel all sorts of dread about that Bill, but it is an opportunity to do something. However, every single day is an opportunity to do something. The opportunity was two years ago, a year ago, last week and the week before, and the Government do nothing.

The simple reality is that it is not that complex to do things that will shift the dial and save the dales and other rural communities that are being undermined in the way they are. That is what so frustrating to us: there are people from all parties in this Chamber today, and there are other people who would be here on a normal Thursday if it were not this time of year and if there were any votes today. The reality is that we know there is a problem, and we see no action from the Government. Every day that goes by is another day wasted. It is not complex—it is just tragic.

[Rachael Maskell (York Central) (Lab/Co-op)]

I am grateful to the hon. Gentleman for calling the debate and I congratulate him on his speech. Urban areas that are holiday destinations—such as York, which has more than 8 million visitors a year—are also plagued by the issue, which is about not only Airbnbs and holiday lets but second homes, not least because people have now discovered new ways of working. Is that not another factor to add to the equation when we look at not only who has the ownership, but what is being developed?

[Tim Farron]

The hon. Lady makes a great point and I am grateful for her intervention. It is not just a rural issue, although it may predominantly be rural. York is clearly a good example of somewhere that suffers in a different way. I will come to the issue of holiday lets and some of the answers in a moment. It will rob communities of their very life if we do not intervene. I am not someone who is anti-market—I am anti-broken market, and this is a broken market. This is our opportunity to do something about it.

Excessive second home ownership is a colossal problem in our communities. The purpose of this debate is to shake the Government out of their demonstrable and inexcusable inaction and to take the action required to save our communities.

The crisis has become a catastrophe, and it is not just about second homes. Holiday lets are an important part of our tourism economy. In the Lake district, we argue and believe that we are the most visited part of Britain outside London. Our tourism economy is worth more than £3 billion a year and employs 60,000 people—comfortably Cumbria’s biggest employer. It is a vibrant industry and, by its very nature, a joyful one; I am proud to be a voice for Cumbria tourism in this place. Those 60,000 people working in hospitality and tourism need to live somewhere. Some 80% of the entire working-age population of the Lake district already works in hospitality and tourism. We need to increase the number of working-age people who can afford to live and raise a family in our communities, yet the absolute opposite is happening at a rate of knots.

During the pandemic, in South Lakeland alone—just one district that makes up part of the Lake district—there was a 32% rise in one year in the number of holiday lets. I assure the Minister that those were not new builds; they were not magicked out of thin air. Those new holiday lets emerged in 2021 following the lifting of the covid eviction ban. That is not to blame the ban; it was a good idea, and it had to come to an end at some point. My point is that that rise was over a tiny period of time: less than 12 months, in reality. The fact is that this time last year those new holiday lets were someone’s home.

In Sedbergh, Kirkby Lonsdale, Kendal, Windermere, Staveley, Ambleside, Coniston, Grasmere, Grange and throughout Cumbria, I have met people who have been evicted from their homes under a section 21 eviction order—which, incidentally, this Government promised to ban in their last manifesto.

Among the hundreds evicted, I think of the couple with two small children in Ambleside, who struggled to pay £800 a month for their flat above a shop in town; they were evicted last spring only to find the home they had lived in for years on Airbnb for £1,200 a week. I think of the mum near Grange, whose teenage son had lived in their rented home his whole life; they were evicted only to see their property on Airbnb a few days later for over £1,000 a week. I think of the tradesman from Sedbergh, who had served the community for 15 years; a few days after he was evicted, his former home was also on Airbnb for £1,000 a week. There are hundreds more individuals and families in the same situation right across rural Cumbria.

--- Later in debate ---

[Rachael Maskell (York Central) (Lab/Co-op)]

I thank the hon. Member for Westmorland and Lonsdale (Tim Farron) for opening the debate so well, as we see a surge of second homes and holiday lets. We all know that our constituents need local homes for local people. They are being priced out of their communities and the wrong houses are being built, all at a cost to the local economy. This is about cost, tenure, and impact.

York is no different from rural areas; it is not about location but housing tenure and use, not least for a holiday destination. York has residential streets full of holiday lets, fragmenting communities in areas where second homes have a prevalence. We have new developments that are increasingly attractive to investors but unaffordable for local people. That includes the 2,500-unit York Central development, which even Homes England recognises could be dominated by second homes and holiday lets—it is now being dubbed “Airbnb central”. The wrong kind of housing is being developed; the site should be about public land being used for public good.

I do not chastise the Government for their focus on housing numbers, but in York, we need growth for our local people, and that focus is propping up second homes and the lettings market, and causing the housing market to overheat at the expense of local families being pushed further away from our city. The solution is local homes for local people, whether they already live in York or are moving to serve our local economy and public services.

Let me address costs. York receives more than 8 million visitors a year. The holiday let business is booming, not least as covid-safe staycations have been such a feature of the pandemic. York’s pressure-cooker housing market saw an increase of 14%—£36,000—in the average property price in the year up to August. First-time buyers spend 23% more on housing than they did five years ago. York’s affordability ratio is 8.3 and rising sharply. Family homes are being snapped up as holiday lets or second homes, and it is more lucrative to convert student lets to holiday lets, so we now have a problem with student accommodation. York’s superb connectivity and new ways of working mean that the opportunity to own a second home in York has become even more attractive to weekly commuters.

On tenure, developers are building units for investors, not to meet local need. They are perfect for short-term breaks but hopeless for local families, even though family homes constitute 80% of those needed. That is why the numbers game just does not work and the planning system does not deliver. It is a false economy: housing units are getting ticked off but housing need is not being addressed. It is a developer’s dream, as they can name their price, but a local person’s nightmare, as they are pushed away from our city.

On the impact, we cannot recruit those with the vital skills to staff our NHS or social care. We cannot staff our local economy, particularly in retail and hospitality, as people can no longer afford to live in York, and that problem has reached crisis point in some professions. The gentrification of our post-industrial city is coming at a heavy cost, not least as local families are now being driven away by the net loss of council housing and a housing waiting list that has tripled in my short time in Parliament. The unaffordable rents and market housing costs are forcing people to live and work elsewhere. Too many people are now at the mercy of unscrupulous private landlords or in overcrowded social housing. It is breaking our city. Local homes for local people is imperative.

I will make five suggestions. First, we need proper local data, including a register of housing lets and a register of second homes.

Secondly, we need to fix local taxation. Business rates do not work here, as we all know, so on top of council tax, a council tax levy should be paid by people who have the privilege of owning a second property for holiday lets. After all, people renting still use local services and need their bins collecting.

Thirdly, on planning, we need to build local homes for local people. The planning system does not currently accommodate that, and the obligations and incentives have a perverse impact. A residence test is required, and although I would welcome such a measure, it is about more than that. We need to address the problem not just at the point of sale, but when the land is being developed, and consider the obligations placed on developers. We need to review the local planning process—I appreciate that we have not had a local plan since 1954, which is escalating the problem—and I trust that the Minister will deliver that for us this year. He needs to bang heads together at our local authority to deliver that, because we absolutely need to look at the planning system in today’s context.

Fourthly, on financial incentives, scrapping the mortgage tax relief on holiday lets is absolutely essential, as is looking at how stamp duty can be even better used as a disincentive for second home ownership. When disposing of public land, instead of chasing one-off land receipts, investment in the long-term interests of the community and the socioeconomic outcomes should be the prime focus.

Fifthly, we should also limit the time for which holiday homes can be let, as has been done in London and Europe. That will curb the behaviour of some of second home owners and ensure that those homes can go to local communities.

We need the principle of local homes for local people to govern every housing decision so that we can once again have a vibrant community.

Affordable Housing: Planning Reform

Rachael Maskell Excerpts

Tuesday 7th December 2021 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to speak in this debate, Dr Huq. I thank the hon. Member for St Ives (Derek Thomas) for opening the debate. I want to reinforce much of what he said, because the challenges that we have in York seem to replicate those in Cornwall and elsewhere across the country.

We have a housing market that is out of control and heating up at pace, year after year. When I bought my first house, the housing affordability ratio was 3. In 2019, in York, it was 8.3. Right now it is 11.7. So, just in the period of the pandemic, it has already risen significantly and is increasing even today. In York it is growing faster than anywhere else in the north, or indeed, I understand, in the country, at 14% in the last year. York is a very desirable place to live and, with new ways of working, people now realise they can live in York and still have a base in London.

People’s patterns are changing, but the housing crisis is just escalating for us. We cannot recruit skilled workers, the tourism and hospitality sectors are struggling to function and, while social care has not been able to recruit for some time, we are now seeing graduate professions, such as working in the NHS, coming under significant strain. People cannot afford to live in York, but we need their skills. Therefore, the impact of the housing crisis is showing itself in the economy.

As the luxury and investment markets increase, the housing market is heating up further. I understand that estate agents can, and do, now name their price and that investors see opportunity. Why are we in this situation? There are so many questions to be asked, including why we see housing as at asset at all, when we know it should be a human right. York’s social housing numbers have also been falling, but at the same time, the waiting lists have increased threefold since I have been an MP. Affordability is completely unaffordable in York. In post-industrial cities such as York, like in many areas of the north, there is an economic dependence on low-wage and insecure work. Housing poverty is a reality for vast swathes of my constituents. In the private rental sector, behind Bath, Brighton and Oxford, York is the fourth least-affordable place to rent outside of London—and the least affordable in the north. When 61% of renters have no savings, a future of home ownership is completely unrealistic. This traps more people in housing poverty.

Over the past decade, the City of York Council has only built an average of 36 affordable homes a year, and has seen a net loss of its social housing stock. Over 200 of these units lie empty, awaiting repairs, but the council is struggling to recruit the necessary skills to bring them back into use because traders cannot afford to live in York. That means that we have a skills shortage preventing us from bringing those properties into use. That is a problem right across the industry; it shows how investment is needed to get control of the housing market—to then get control of the economy.

Of those who are lucky enough to rent, many are living in box bedrooms—I am talking about whole families—or damp, mouldy homes. That is completely unacceptable. As in Cornwall, York is being absolutely overrun by Airbnb’s, holiday lets and second homes. Over a quarter of the housing stock is owned by private landlords, who can literally name their price. In addition to the measures laid out by the hon. Member for St Ives, we need to collect proper data, both on what domestic residential properties are being used for and on Airbnb’s and holiday lets. We also need to ensure that we have a mechanism or lever to secure homes for primary occupation, as opposed to other use.

York’s local plan is with the inspectors; this is an issue that runs sore in our city, so we want to see that come forward as fast as possible. However, the local plan process was designed for a different era; I put it to the Minister that we need to refresh and overhaul that process, so it is not just about numbers but about looking closely at tenure and what is needed to join up the housing and economic needs of an area. We need to look at longer-term development, and ensure that it is hardwired into what we are doing. As the Minister knows, we have a massive site in York Central that is owned by Homes England and Network Rail, which are public sector organisations, and yet the demand on Network Rail is to release that land as a capital receipt, in order to see investment over 60 or 70 years that will enable housing to be built to meet local needs in the right forms of tenure.

There are so many things that I could speak about today, but I will end by saying that the issue of land banking must be addressed. Developers’ ability to sit on land without having to pay the price, needs to be brought into focus. Today housing is a driver of inequality, and housing is too important to be used in such a way. We need to make sure that we build homes that people can afford to live in, and end this racket in the housing market.

Fire Safety: Retirement Communities

Rachael Maskell Excerpts

Tuesday 9th November 2021 Commons Chamber

[Mr Jones]

I very much agree and will come to some of what the Government must do. Local fire boards and fire brigades will need extra enforcement powers.

I expected McCarthy & Stone, as the builder of the retirement community, to show an interest in rectifying its possible mistakes. I believed—foolishly—that it would be horrified at the risks that it might have inflicted on the residents through a litany of fire safety defects and that it would contact FirstPort, the new operator, to co-ordinate ways in which to rectify the situation. I was therefore disappointed when it simply said that the operation of the building had been passed to a new provider and that the warranty period on its construction work was up—it basically washed its hands of the situation.

It is unclear why the new operator, FirstPort, did not discover some of the structural building defects earlier as part of its due diligence when it took over Cestrian Court from McCarthy & Stone. It is also unclear why, given that Cestrian Court had five inspections during its construction, the National House Building Council failed to identify these issues.

On receiving the compliance report, I immediately contacted the chief fire officer at County Durham and Darlington Fire and Rescue Service, who did an audit of the building. Of most concern was the “stay put” policy in place for residents in the event of a fire, which effectively said, “In the event of a fire, do not worry. Stay in your flats. Your flats are fireproof.” Nothing could have been further from the truth. Since construction 11 years ago, residents have been under the impression that “stay put” was the best policy to save them in the event of a fire. That was on the misguided assumption that the fire would be contained. With no fire-proof doors, gaps in cavity walls and loft spaces with missing or dislodged fire safety structures, that advice might have had fatal consequences. Residents were not protected, and we have been lucky that we have not had a national tragedy at this building.

The chief fire officer also found that the fire alarm system did not work, which again calls into question the “stay put” policy for residents in the event of a fire. He therefore escalated the advice from “stay put” to “full evacuation” in the event of a fire at the premises. Unsurprisingly, he also confirmed that the problems had to be treated with such urgency to mitigate the risk that the work would have to be done within three months. In the meantime, the fire risk was so bad that residents would have to pay for someone to stay on the premises 24 hours a day to alert them to possible fires, costing each two-bedroom flat £1,000. I want to formally thank Stuart Errington, our chief fire officer, and his team for the speedy way in which they dealt with this matter.

There have been cases throughout the country, as the hon. Member for Strangford (Jim Shannon) highlighted, of fires in retirement communities. There is evidence to suggest that if those fires had taken place at different times of day, they could have had fatal consequences. One fire took place at the Beechmere retirement complex—a four-storey complex of 132 extra-care sheltered flats in Cheshire—in August 2019. The fire rapidly spread through the cavities in the walls and the roof space. The fire service was unable to prevent total loss of the flats, but it was able to prevent any deaths. However, there is evidence that if the fire had taken place during the night, the consequences would have been completely different.

In 2017, a fire took place at the Newgrange care home—a two-storey care home in Herefordshire—resulting in two fatalities. The fire service had to rescue 30 people. Finally, in June 2020 in Sunderland, a fire started in the roof of the Croft care home and quickly spread. Some 27 residents had to be evacuated—some from upper storeys. Again, if the fire had occurred at night, we would have had a large number of fatalities.

Turning back to Cestrian Court, I was told in April this year that full remedial work would cost residents £87,000—around £3,000 per resident. Let me say very clearly that it is plainly wrong that residents are having to pay for remedial work that was the responsibility of McCarthy & Stone, which built the properties in the first place.

[Rachael Maskell (York Central) (Lab/Co-op)]

I have the same issue at Guardian Court in my constituency, which is owned by Anchor Hanover. Just putting a new fire alarm system in these rented properties would cost £114,000. Along with the residents, I lobbied to reduce the cost and the labour costs to £98,500, but this is extortionate for people who have no additional means.

[Mr Jones]

I agree. These people are on fixed incomes and cannot just lay their hands on this type of money.

Let’s get this in perspective. Before its £647 million buy-out by private equity in February, McCarthy & Stone was listed on the FTSE 250. It handed out multimillion-pound bonuses in 2019. The chief executive officer earns £658,000, and the company has an annual turnover of £725 million—FirstPort has a turnover of £88 million. I have to say that £87,000 is small beer compared with the amounts being paid to the executives of McCarthy & Stone.

The remedial works at Cestrian Court have now been done, but the cost has fallen on the residents, and that cannot be right. It is also causing a huge amount of distress to those individuals, knowing that for the past 11 years they have been living in a building that could have been a tinderbox. I urge the National House Building Council and the two companies I have mentioned to put in place a scheme to compensate my constituents.

Interestingly, I have had one letter from McCarthy and Stone, but I think I have had five phone calls in the past few days, with it suddenly wondering why it is going to be raised in this debate. In the correspondence, McCarthy and Stone and the NHBC clearly have a dangerous misunderstanding of each other’s roles. I urge McCarthy and Stone and FirstPort to look, along with the NHBC, at who is responsible for this. Again, McCarthy and Stone’s attitude is, “It’s not our problem. It’s gone away”, but I think it is.

In conclusion, the Minister needs to consider new clause 1 to the Building Safety Bill, which calls on the Government to establish a review of construction industry payment practices. The current legislation contains no protections for residents such as those at Cestrian Court, given the height of the building. I understand well why the emphasis to date has been on the height of a building, but I urge the Minister to consider some of these buildings, and look at how we can better co-ordinate fire safety at a local level, and ensure that the inspection of new properties does not leave residents vulnerable.

I urge the Minister to take Cestrian Court as a case study that demonstrates the disjointed system for leasehold arrangements in this country, and the impact of that on fire safety. Residents of Cestrian Court have been fortunate that there was no fire, but one wonders what would have been done without their persistence in raising this issue and arguing that things should be done. Companies such as McCarthy and Stone portray the dream of a retirement for the elderly through glossy brochures and TV adverts, but all they have sold in my constituency is a potential nightmare. If a fire had taken place in that building, there would have been a need for some prosecutions.

Importantly, anyone living in a McCarthy and Stone property today should ask what fire certificates and regulations have been put in place. Indeed, I urge every fire authority to go into McCarthy and Stone properties to check that we do not have the horror story that we have at Cestrian Court. I thank the residents of Cestrian Court for their doggedness and determination in raising this issue. I feel heartily sorry for them as they have been left in this position through no fault of their own. It is another example of where people make money out of developments, but those individuals who have often put their life savings into wanting a happy retirement are left out of pocket. I am sorry, but that cannot be right.

Oral Answers to Questions

Rachael Maskell Excerpts

Monday 25th October 2021 Commons Chamber

[Michael Gove]

I am very grateful to the hon. Gentleman, who is a very distinguished Select Committee Chair. At the danger of establishing a treacly consensus right from the very beginning, may I say that I entirely agreed with the first part of his question? As for the second part, I certainly welcome that direction of travel.

[Rachael Maskell (York Central) (Lab/Co-op)]

Today, York has been voted Britain’s most popular city. However, if we get planning wrong, we will embed inequality into our city. The governance structures over projects such as York Central are currently in the wrong place, so they will not deliver for the people in my city. Will the Secretary of State meet me to discuss York Central, as I have met many of his Ministers, so that we get the governance structures right for the future?

High Streets

Rachael Maskell Excerpts

Tuesday 19th October 2021 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under you, Ms Nokes.

We need recovery and reform. Anyone who has been to York will know that our high street offer is incredible, yet now, like elsewhere, we are battling empty shops, labour shortages, logistic challenges and offshore landlords more interested in the financial portfolio generated from their property ownership than invested in their high street. This perfect storm sucks the life out of not only our communities but local finances.

With changes to the system, life can be brought back to our urban cores. A few pleas from my local businesses: we need to move away from a property-based tax––I am glad that that is echoed across the House––and build one predicated around profit or turnover. York’s extortionate property prices make business rates unsustainable. Businesses are also calling for the reduction in VAT to be sustained. Recovery takes time and when your high street is dependent on the visitor economy and the visitor economy is dependent on the high street, time to recover is needed.

Currently, venues are shutting part-time due to labour shortages and less demand, each compromising the other. In summing up, will the Minister say what discussions he has had about introducing the youth mobility visa for EU citizens so that labour supply can continue? In York, labour vacancies are up 10% from August, with 3,400 jobs needing filling. Skill shortages are hitting York’s offer.

We do not just want recovery; we want reform. The hope lies in indie York: 65% of York’s retail offer is by independents. The challenge is that the retail space vacated by the big chains occupies 9.3% of the city. We need these large empty spaces repurposed for independent social enterprises and what Labour in York has envisaged: a family-friendly York. A family-friendly York demands reform. Since being elected, I have campaigned for York to be a family-friendly city. Local families do not visit: it is too expensive, with too few child-friendly spaces, unless you have the means to pay, and too few public toilets. Worse, the night-time economy clashes with the day, so parents simply do not want their children to come into town.

Imagine Government steering local authorities to become family-friendly places where children can play and parents can relax. Urban95 or the UN child friendly cities initiative can drive this. It is good for families, good for economies and good for our environment. York is perfect for that. Imagine safe routes in, so that children can enjoy the journey and the destination. Imagine the urban landscape designed for children and families. Imagine no hen and stag as they are planned out. Imagine spaces to play, explore, learn and create. York Explore, our libraries, have their Lego tables and cafes. York Museums Trust, now with free entry, has created spaces. York Archaeological Trust is launching digs for families to learn together. We have churches, empty shops, and even Parliament Street, just waiting to hear the laughter of children and welcome families. I trust that the Government will look at family-friendly York as an example of how we can really invest in the future generation and the future of our high streets.