Budget Resolutions and Economic Situation

Selaine Saxby Excerpts

Tuesday 21st March 2023 Commons Chamber

[Selaine Saxby (North Devon) (Con)]

I warmly welcome the many good things in the Budget to help cut debt and inflation, but given the time constraint I will focus on what did not make it into this Budget, as it is never too early to lobby for the next one.

My right hon. Friend the Secretary of State for Levelling Up, Housing and Communities mentioned affordable housing many times, and it is probably the biggest issue in my constituency. It impacts on our productivity, puts pressure on household budgets and makes moving into the region for work increasingly unaffordable. Some challenges of the housing situation on the south-west peninsula rest with the Department for Levelling Up, Housing and Communities and the Department for Culture, Media and Sport; others are a direct result of taxation policy and could be alleviated by changes to it. We need to level the playing field between long-term and short-term rentals within the taxation system. Both are businesses, but one enables people to live and work in an area and the other is a tourism business. The current tax system encourages short-term lets over long-term lets and needs at least levelling up or possibly even reversing.

Cornwall Council’s own data shows that more than 1,000 people in Cornwall were made homeless in 2021 as a result of landlords changing their properties into more profitable holiday lets. Many of those households are now on Cornwall’s housing wait list, which now numbers more than 20,000. Devon’s is in excess of 16,000. The situation on the peninsula is so severe that businesses are unable to open fully, which is reducing their profitability, and public services cannot recruit because there is simply no affordable housing. Long-term rentals have also collapsed, with a drop of 67% in my constituency in the past two years, making it very hard for people to move into the area. I have already written to the Levelling Up Secretary about this, but he said that he did not want to tinker with the taxation system, so I am very much hoping that the Treasury team will find an opportunity to delve into the housing market. I recognise that this might seem niche and just for tourist parts of the country, but it is now impacting hugely across almost all of Devon and Cornwall and having an impact on our workforce.

While we look to drive up productivity across the south-west, I have another small ask for the Treasury team. Will they revisit the VAT threshold? Every year in Ilfracombe, in my constituency, swathes of businesses close down for the winter rather than go through the £85,000 tax threshold. Having put a small business through that tax threshold myself, I know how challenging it is, but I hope that we can fire the ambition of those small business owners by alleviating that small threshold. I recognise that it does not raise large sums for the Treasury, so I completely understand why it was not included, but this would be an opportunity for those businesses to level up with their bigger competitors in the constituency and hopefully keep that town open and thriving throughout the entire year.

There is so much in this Budget that I warmly welcome, and I thank the Treasury team for all their engagement, and particularly for their help for potholes in Devon, but can we look at what more we can do to level up our coastal communities?

Adult Social Care

Selaine Saxby Excerpts

Wednesday 8th March 2023 Commons Chamber

[Selaine Saxby (North Devon) (Con)]

It is a pleasure to see you back in the Chair on International Women’s Day, Madam Deputy Speaker. It is also a pleasure to follow the hon. Member for North Shropshire (Helen Morgan), whose constituency reflects mine in many ways. I will bring some colour from a constituency perspective to many of the issues and challenges that she highlighted around providing social care.

Devon is a prism of the future, because it has an elderly population that is only getting older. If anyone wants to see what the rest of the country will look like in 20 or 30 years, they should come to Devon. Similarly, if any of the great ideas coming out of this debate can be trialled or tested, I recommend Devon to the Minister as a great place to come. We are already on the journey of our county council frantically trying to balance its budget. Some 25% of the budget is spent on adult social care, and that amount has increased by 23%, adjusting for inflation, in the last decade alone.

As the hon. Member for North Shropshire mentioned, rurality is a huge factor. North Devon is remote, rural and coastal, so the distances involved in providing adult social care are monumental. The dramatic rise in energy costs has had a huge impact on social care providers’ ability to deliver the same service, and the increase in the council’s budget, unfortunately, does not fully reflect that.

Rurality also has an impact on the manner in which care is delivered in those communities, because of the distance that individual teams have to travel between daily stop-offs. That is overlaid with the pressures being placed on the hospital, which mean that some carers are having to make multiple visits a day—perhaps three—to one family, where they might previously have made one or two. That is escalating into a snowball effect of costs rising far higher than is reflected by the council.

I am now being contacted by providers of social care who are concerned about what is happening and their ability to continue to provide the care. One innovative care provider pays its care workers on a shift basis to reflect the distances travelled and the amount of time that care workers are not working, as opposed to paying them on a contact time payment methodology. Given the likely decrease in the next budget, however, it is unlikely to be able to continue that, even though offering that great package is how it has been able to train up and retain its fabulous staff team. If someone has to drive between appointments, why should they not be paid for the driving time, if it is the only way to get there?

We need to redesign the scheme for remote rural locations. As the Minister knows from his previous roles, we have a particular housing pressure in North Devon, so a different way of looking at it would be to remunerate a social care worker with accommodation as part of their package. That would enable them to serve that remote rural community without having to spend hours in the car driving between remote rural communities. The Department for Levelling Up, Housing and Communities might not be the right Department to suggest that to, but we cannot keep on pretending that the system is working. We need to find other ways and different solutions, particularly when rurality is being overlaid on the other pressures. At the moment, clients are being transferred away from better-qualified, better-quality care providers because the council budgets will not stretch, which is not right for the individuals involved. It feels fundamentally wrong that that is happening on my doorstep.

In North Devon, we are home to a fabulous hospital, which is the smallest and most rural in mainland Britain. It is not right that there is regularly a queue of ambulances outside it because we cannot discharge out of the back end due to a lack of social care. I have social care providers telling me that they have capacity but the council will not pay their rates to provide it.

As part of this process, I hope that somebody will look at the fair cost of care exercise in Devon, because there is some concern that the data that has been submitted is perhaps not being accepted as the true price of delivering that care. We need to acknowledge the prices involved, because these are humans who we need to look after and care for in our communities. There is also a concern that the cost pressures faced by the council are driving growth in the number of unregulated personal assistants and private carers.

[Mr Betts]

The hon. Lady is talking about the fair cost of care. I declare an interest as a vice-president of the Local Government Association, where there is a real concern that the money that the Government made available was not based on the detailed assessment that councils had done about the difference between what people pay for their care privately and what councils are paying. If councils suddenly ended up with that extra cost, the Local Government Association’s view is that the amount would be much more than the amount that the Government were putting to one side in their initial reform proposals.

[Selaine Saxby]

I thank the hon. Gentleman for his intervention; much more work needs to be done in this space.

We need to look for longer-term funding solutions. That is true for social care, but also for potholes, which I will mention while I have the opportunity, as my right hon. Friend the Member for Ashford (Damian Green) did. Part of the reason why some funding settlements do not add up is that when we provide a short-term funding solution, we cannot plan for the long term. I estimate that we are paying twice as much per pothole repair as a result of short-term settlements that stop councils from being able to plan effectively for their workforce, the work and the use of materials. I hope that there will be an opportunity to address some of those problems, because the pressure on budgets is having an impact on all council services, not to mention the individuals and the fantastic care staff involved.

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[Lee Rowley]

I am grateful to the hon. Lady for her intervention. I will come to her points in a moment.

I acknowledge the point that my hon. Friend the Member for North Devon (Selaine Saxby) made about rurality, which is one reason why it is important that there is a balanced understanding that some funding is raised locally. Different parts of the country will have different requirements, pressures and challenges, which, in many parts of the country, will include rurality. I accept that that creates an issue in certain places. From a local government perspective, rather than an adult social care perspective, we have tried to acknowledge that, at least in part, in the local government finance settlement through the rural services delivery grant. I am always happy to look at that and to talk to my colleagues in more detail, as we prepare for funding settlements in future years.

[Selaine Saxby]

Does my hon. Friend acknowledge that in massive counties such as Devon, outside the urban south, the very rural hinterland causes variance from the average, and that top-tier authorities should have much more leverage to offer settlements with a far greater differential between rural and urban areas?

Levelling-up and Regeneration Bill

Selaine Saxby Excerpts

Report stage
Tuesday 13th December 2022 Commons Chamber

[Siobhan Baillie]

I rise to address amendment 2. With 1.2 million vacancies, recruitment issues for businesses, some of the highest childcare costs in the world and a lack of choice for parents, it is right that we try to look at all forms of legislation to see if we can make improvements to childcare policies. I listened to the hon. Member for Walthamstow (Stella Creasy). I do not accept her criticism of the Minister and of what the Minister said. There are two separate issues. The first is whether infrastructure facilities for childcare are already included in the list that can be used for CIL and section 106 infrastructure spending. We heard from a number of Members that that is already available under DFE guidelines, and that councils can already build and spend in that way—it is a capital spend. The second issue is whether we can make changes to the regulations to include spending on revenue, effectively, so subsidising free childcare, or supporting childcare places. That needs a bit more work, but I note that the hon. Member for Walthamstow, who is not in her place, took straight to Twitter to suggest that the Government are not supportive of childcare or recognising that infrastructure matters. That is simply not the case, so I welcome the Minister providing some clarity on those issues.

More generally, the issue of housing targets, five-year land supply and the 20% buffer are constantly thrown back at my communities when we challenge building matters. Often, the Government are blamed even when it is a district council matter that is being challenged. We have an emerging local plan in Stroud. I welcome what the Minister said earlier to a colleague about the fact that we can look at a pause on a local plan. Certainly, the local council will need to do that.

I welcome the work being done in particular on compulsory purchase and derelict properties. We have a property in my patch called Tricorn House. It has been there for 20-odd years and it is a complete blight on the landscape. It was the site, sadly, of the tragic loss of a young life. The family are completely devastated and they have to look at the building every day. Nothing happens. Owners change and we are waiting. I will back any legislation that can help me to sort out Tricorn House.

It is the job of hon. Members to change and amend legislation to improve it. That does not mean we are rebels trying to take down the Government. Equally, my constituents are not nimbys because they care so deeply about their communities. They are the ones who spot when there is a great big gas pipe running through a site on which a council suddenly decides it wants to build. So let us stop the labelling, let us stop the nonsense and let us make the changes. I welcome what the Minister and her team are doing, and I thank them for it.

[Selaine Saxby (North Devon) (Con)]

I rise to speak to new clause 119. I thank the Minister immensely for her engagement on this issue. Although she is the sixth Housing Minister I have spoken to about short-term holiday lets and second homes in my constituency, she is the first to deliver real change.

The issue in North Devon, like in many coastal communities, is acute. When I was elected to this place, Croyde was 64% second homes and short-term holiday lets. In North Devon, since the pandemic, we have lost 67% of our long-term rentals, and seen a 30% increase in property prices and a tripling of section 21 notices as people flip their long-term rentals into short-term holiday lets.

In Devon, we have worked hard to better understand what is driving some of these changes. Whereas before the pandemic we might have highlighted second homes as a particularly big issue, short-term holiday lets are now a major factor. I welcome the Minister’s changes and the caution with which they are being approached, because the unintended consequences of tinkering in this market and getting it wrong are often great.

It is not only in the Department for Levelling Up, Housing and Communities that we need changes to legislation, as the changes to landlord tax relief introduced in 2016, which came into effect in 2020, have had a monumental impact on this market. Although my work here may be nearly done, I am now lobbying other Ministers for changes to make sure we properly tackle this issue, which is multifaceted and spans many different Departments.

[Anthony Mangnall (Totnes) (Con)]

I congratulate my hon. Friend on doing a fantastic job on this issue. She has made a massive difference across the south-west. The important point is that we have to encourage long-term rental properties across the United Kingdom. We have done that by changing business rates, council tax and, now, registration.

[Selaine Saxby]

My hon. Friend and I share many similar issues.

I pay tribute to my hon. Friend the Member for Newton Abbot (Anne Marie Morris) for tabling the predecessor to new clauses 22 and 23. I am also one of the rebels who signed up to new clause 21. I take the opportunity to explain that I have no issue with building houses, but we have built ahead of target in my constituency, and what is the point when they are all empty and my local residents cannot move in? We need to build homes for local people so that they can live and work in the place they were born and brought up and where we have jobs for them. We have to end coastal ghost towns.

I thank the Minister again for her time. This is a big step forward.

[Mrs Natalie Elphicke (Dover) (Con)]

I rise to speak in support of new clause 12, in the name of my hon. Friend the Member for Northampton South (Andrew Lewer), on small-site affordable housing.

The need for affordable housing, and indeed housing, across the country is very great. There is nothing like a cold snap and the crispness of fresh snow to bring front of mind people who are homeless on our streets, who have inadequate, cold housing or who need a home of their own. We also need to talk about the delivery of responsible and sustainable housing that is right for local areas, rather than simply stopping it. There is a group of people who do not have the voice of a property to object to a plan, and who do not have the voice of a community to call their home. We need to make sure they also have the homes they need.

On the delivery of affordable and other housing, I completely agree with the sentiment of moving away from nationally imposed housing targets and towards restoring stronger local accountability. Indeed, that is something for which I have long called, as set out in the 2015 Elphicke-House report. The standard method, otherwise known as the mutant algorithm introduced in 2018, has created an unhelpful backlash against house builders and developers without improving affordability in a meaningful statistical sense.

However, we must not throw the baby out with the bathwater, and I will look carefully at the consultation on the NPPF. I ask my right hon. and learned Friend the Housing Minister to consider what further steps may be taken to make sure our councils have greater responsibility for being housing enablers by bringing forward the housing needed in their areas.

As well as the financial, social and wellbeing costs for those who need homes, insufficient building has a very high economic cost to GDP. It is estimated that the house building industry generates over £40 billion of economic activity, including the delivery of £6.6 billion in affordable housing, while 100,000 fewer homes—that is not impossible in a sharp contraction or loss of confidence in the house building sector—could be a loss of £17 billion of economic activity and put 800,000 jobs at risk. So I ask my right hon. and learned Friend the Minister to consider accepting the sentiment behind new clause 12, and to ensure, as the Bill progresses and as the new NPPF is put forward for consultation, that the proper delivery of housing is at the forefront of her mind.

Levelling Up Rural Britain

Selaine Saxby Excerpts

Wednesday 9th November 2022 Commons Chamber

[Selaine Saxby (North Devon) (Con)]

I beg to move,

That this House has considered the matter of levelling up rural Britain.

I thank the Backbench Business Committee for granting this important debate. I am delighted to see one of the new Department for Levelling Up, Housing and Communities team here today, as in my mind far too much of levelling up rural Britain is seen to be the home of Department for Environment, Food and Rural Affairs, yet the economic challenges of rural communities are immense, and the increase in the cost of living disproportionately impacts these communities, with their reliance on private cars for transport, longer journeys and older, poorly insulated housing stock, often in exposed and windy locations. I am going to call on my own experience in Devon to illustrate my words today, but I recognise that these issues are replicated around the country.

Much of rural Britain also has productivity issues. The excellent “Levelling up the rural economy”, produced in conjunction with the Country Land and Business Association, goes into great detail on these issues, many of which relate to connectivity. I took the chair of the all-party parliamentary group for broadband and digital communication there when I arrived in Westminster, because getting broadband done was second only to getting Brexit done for my rural North Devon constituency. It is hard for a community to be as productive as it might be if it has to wait for the circle of doom to clear before being able to connect to the internet.

Devon and Somerset have been blighted by many issues with the connection programme, but I take this chance to thank Connecting Devon and Somerset for improving our connectivity. I am delighted to see more improvements and more policy areas, and I also thank Openreach for its roll-out of broadband in rural Britain. However, the road map for rolling out broadband simply does not work in a rural environment in the same way as it does in an urban one. Our policies need a reality check before being released into the countryside.

I am grateful particularly to Openreach for the work it has done in connecting my constituency, but the magnitude of the task is huge. The Openreach senior team met me in Barnstaple early in my time as an MP and asked for a challenging part of my patch to connect, and it has done a sterling job connecting the stunning Lynton and Lynmouth, with fibre now running down the funicular railway. While residents and I are hugely grateful, what Openreach describes as a “rural project” is my fourth largest town. In rural Britain, the expectation is that everything is small, but the distances certainly are not, and connecting remote farms remains a huge challenge that the current schemes will not deliver in the timeframe we need for rural productivity gains to drive our rural economy.

I take this opportunity to thank the Department for Digital, Culture, Media and Sport team and Building Digital UK for their engagement on this topic. I know that solutions are not easy, and while I sound like a record stuck in a groove talking about rural broadband, it is not right that the countryside is left behind in this way. We are aware that we have a productivity gap across all the south-west, with large numbers of part-time workers, partly driven by an ageing population, the seasonality of our tourism industry and in particular by a skills gap. We are desperately short of skilled workers. Devon has the lowest proportion of degree-educated 20 to 30-year-olds in the country, and much of that is driven by the extreme house prices and the cost of getting to work from somewhere cheaper.

Low aspiration is also a feature of much of northern Devon, generating low social mobility. When we peer into why that might be the case, so much to my mind comes back to distance. We are more than 60 miles from a university, and there is also the challenge of just getting to school or college. When rural schools have a catchment area the size of Birmingham, it is no wonder that the policies that work well in Birmingham, for example, might not translate so well to North Devon.

For example, school transport is the only way that most children can get to school, so after-school activities are not accessible to far too many of them. Schools would like to extend the school day, but that is seemingly not possible. One very rural school aspired to have a sixth form that offered only science, technology, engineering and maths, so students could continue to access 16-plus education using the school transport network, but that was not allowed because city-centric education policies determine that a school has to have 12 subjects—and so it goes on.

We have to adapt our policies to rural locations. We must listen to the excellent headteachers who run those schools and who believe that they are better placed to manage budgets and deliver services, such as special educational needs and school transport, than our distant and disinterested county council. Levelling up is all about equality of opportunity, but that simply does not exist for far too many youngsters growing up in the country, given the lack of flexibility afforded to too many rural schools.

The sheer size of Devon makes it look generally average in many areas, but as I have described in the House before, that hides huge disparities, particularly between north and south. The average that is applied to education for large education authorities has a disproportionate impact on remote rural communities trying to access additional funding and drive up skills, which would hopefully begin to tackle some of the too-often-seen rural poverty.

Devon has the longest road network in the country by 2,000 miles. Everyone who lives in rural Britain travels huge distances, which has an impact on many other services. Social care in particular, following an urban model, costs a fortune in rural locations because teams have to travel huge distances between visits. With fuel costs soaring, councils urgently need help with budgets.

Having spoken with the chief exec of my hospital on Friday, however, we both feel that it is not just money that is needed; we need to rethink social care in rural communities. Even if we had the money, we do not have any staff to work in social care, mostly because of the complete lack of affordable housing. Our health service has 20% vacancies for similar reasons. We are aware of surgeons unable to take up posts at our hospital because of the lack of housing that even they can afford. There is the frustration of being home to what is defined as a small—it is also the most remote—mainland hospital. It is detailed in our manifesto as one of the 40 in the hospital programme and the first phase is to deliver key worker housing. For that project not to be progressing at pace is hugely disappointing.

There is a lack of joined-up thinking across Departments when tackling rural issues. About a quarter of hospital beds in my patch are taken up by those in need of social care, but no one is available to provide it, so they cannot go home. It is hard to deliver health in such a vast setting. I know that ambulance wait times are a challenge, but when the distances that ambulances have to travel are so great, just getting to people takes time. For people to then get to hospital and find that they cannot get in—I have no words.

Similarly, I cannot build the houses that we desperately need or ensure that the properties we have are not left empty for half the year as second homes or holiday lets. I would be doing my constituents a disservice if, while talking about health, I did not mention that Devon is a dental desert, as are many other parts of rural Britain. Despite forwarding numerous innovative solutions, we have heard nothing back. This is not the place to go into that in detail, but the Department of Health and Social Care should also look at how rural health outcomes can be levelled up.

Rurality plays out in many other ways. Many Westminster decisions are based on the density of population, which means that we will always miss out on funding decisions. Active travel is a case in point. My county council submitted six schemes to the last round of funding, the second ranked of which was the Tarka trail in my patch. Although that is more for leisure than commuter journeys, the scheme is considered vital for the safety of cyclists on the trail and is the missing link in a hugely popular tourist destination, because it would connect the north and south coasts of Devon. Despite being my county council’s second choice, the Department for Transport gave funding to the five other schemes, which are in towns and cities, and excluded the only rural one.

Buses are also tricky and we are desperately short of public transport. If the county council has its way and the threats made by its leader come to pass, it will cut all our services. Again, this is about not just funding: buses are too big for the number of passengers in many villages who want to use them. We need to find innovative solutions beyond funding to rural transport if we ever want to decarbonise our journeys and facilitate affordable routes to work. We also need to recognise that urban models do not always translate to rural journeys.

I worry that many of the potential solutions to levelling up rural Britain lie with our local councils. Unfortunately, in Devon, there are many issues in this space. To my mind, the urban policy of mayors does not translate well to rural Britain. From listening to what some of them get up to when I am up here, I am not sure how well the policy works full stop. What we really need to help level up rural Britain is more local decision making.

In Devon, we have far too many councils, with one county council, two unitaries, eight districts and, in North Devon alone, 58 town and parish councils. Trying to get something as simple as painting a lamp post done is near impossible in some town centres, as no one knows who owns it and it is always a different council’s problem. The separation of highways from planning decisions is so fundamentally flawed it is desperate. We need devolution of decision making, and we need it more locally. Our county council is so big and distant, and it takes decisions with no consultation of local communities or their MP—I found out yesterday that part of my road scheme is being cancelled.

[Simon Hoare (North Dorset) (Con)]

Might I urge on my hon. Friend and Devon colleagues what we did in Dorset? Creating two unitaries has made decision making far more streamlined, and it has made the connection between Members of Parliament, councillors and officers much easier. We know exactly who is doing what, and we can get things done.

[Selaine Saxby]

I thank my hon. Friend for his intervention, and I hope that such discussions might be forthcoming in my county.

My district council officers, like so many, worked their socks off to try to deliver levelling-up bids. It was the smaller bids in rural locations that so often missed out in the first round of funding. I will take this opportunity to plug Ilfracombe’s bid, against a planning backdrop of no staff and multiple district councils all battling the same issues.

Why is this important? Of the 10 most economically vulnerable parts of Devon, five are in my North Devon constituency—three in Ilfracombe and two in Barnstaple. The response of the county council leader when discussing possible unitary groupings was that no one wanted Barnstaple. That is entirely clear from the way we are treated by our county council.

However, let me take this opportunity to thank the numerous councillors who do such great work in our local communities. Fifty-eight councils is a lot. Many of them are marvellous, with great rural solutions from hard-working volunteers; others make Dibley look well-functioning and progressive. Changes we made to the monitoring of parish councils make it near impossible to remove a parish councillor, whatever they do. I hope that can be revisited. If only we could remove some of the layers of bureaucracy and avoid duplication, and find better ways to share best practice in a rural environment, we could achieve so much more.

I have touched on the housing challenges in North Devon and so many rural and coastal communities. The influx of second homes and short-term holiday lets, and the lack of regulation in the market, makes housing the No. 1 challenge for so many communities like North Devon. Doing nothing is simply no longer an option. The fabric of our society cannot survive with no one available to work because there is nowhere for them to live. I covered this issue in detail only last week, so I will spare the House today, but I very much hope that the proposed amendments to the Levelling-up and Regeneration Bill will be adopted to begin to tackle these issues, alongside the long-awaited Department for Digital, Culture, Media and Sport consultation on registration schemes for Airbnbs.

I have chosen not to speak today about our beautiful environment and our fabulous farmers, who have numerous levelling-up challenges of their own. I very much hope that next week’s announcement on environmental land management schemes will be favourable to their finances, and I hope that colleagues will tackle these issues. I wanted to highlight some of the realities of rural living, behind the chocolate-box façade. We have to find ways to join up our thinking here at Westminster and recognise that, if we want to level up rural Britain, it is not just the Department for Environment, Food and Rural Affairs that can deliver that. Not only do councils clearly need funding to tackle the additional costs that rurality brings, but their structures need urgent reform.

The now Prime Minister was a signatory to the application for the debate while he was in between jobs, so to speak. From speaking with him last night, I have confidence that rural Britain will be better cared for, and that levelling up will reach into our remote, beautiful communities. When I came to this place in 2019 and first spoke about levelling up Ilfracombe, which is home to two of the poorest wards in Devon, I hoped that levelling up would, by this point, have delivered more than just an asylum hotel. I will continue to champion the need for levelling up rural Britain.

[Several hon. Members rose—]

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[Pete Wishart (Perth and North Perthshire) (SNP)]

It is a real pleasure to sum up for the Scottish National party. It has been a fine debate and an important one, and I congratulate the hon. Member for North Devon (Selaine Saxby) on securing it, but I have to say that I do not know where to start in summing it up. Hon. Members actually still believe that something called levelling up is going on across the United Kingdom and that it will somehow be part of the rural economy. They still believe that there is some sort of agenda that will pour vast sums of money into some of the most under-resourced regions and sectors across the UK, without even more being taken out.

I suppose levelling up is a little like the emperor’s new clothes, but with the emperor starting the whole process entirely naked. At best, it is pork barrel politics at its most gratuitous. In fact, it gives porcine containers a bad name. How dare this Government talk about levelling up when the latest House of Commons Library figures that I found this morning show that benefit claimants in Scotland have seen their income slashed by 16% as a result of a decade of Tory austerity?

It is not levelling up that is going on across the whole United Kingdom. In fact, it is levelling down—a razing to the ground of the living standards of everybody across this country. We are now entering austerity 2.0, with cuts in budgets, and poverty and inequality growing. We can only really laugh at the suggestion of levelling up, while feeling grossly insulted by this fiction on behalf of our constituents.

One word is missing from this whole debate. I do not know whether Members know what it is, but I will give them a clue: it begins with “Brex” and ends with “it”. While levelling up may be a fiction in terms of how it is applied to the rural economy, Brexit most definitely is not: Brexit is having an impact on every single rural constituency in the United Kingdom. This disastrous hard Brexit has hammered rural Britain, costing it millions of pounds, causing exports to plunge, and imposing labour shortages on every business in the rural economy. We cannot get people to work in our hospitality businesses because of what the Tories have done to freedom of movement. This is causing real difficulty and damage, and causing good rural businesses to close down. And the fact is that it will only get worse. The Office for Budget Responsibility estimates that only two fifths of the Brexit damage has been inflicted so far, and that every person in the United Kingdom will face a bill of about £1,200 because of what the Tories have done.

Instead of perpetuating the myth of levelling up, let us look at the real issues facing our countryside. I am disappointed that the Chair of the Environment, Food and Rural Affairs Committee, the right hon. Member for Scarborough and Whitby (Sir Robert Goodwill), is not here at the moment, because we heard from the National Farmers Union yesterday that the real issue is the cost of fertilisers and energy costs and the difficulty that those are causing. I have listened today to Members representing constituencies in counties such as Dorset, Shropshire, Oxfordshire, Buckinghamshire, Hampshire and Sussex. I do not presume that those are the most deprived parts of the United Kingdom. I represent a prosperous area in Perthshire. I have pockets of deprivation, but for all these Tories to come here today asking for more money for their communities, when people in rural constituencies are suffering so much—

[Selaine Saxby]

Will the hon. Gentleman give way?

[Pete Wishart]

I cannot; I have no time.

Let us look at where this largesse is going. I do not know whether anyone is surprised by this, but of the 49 council areas in England that were considered to be the most developed but are now priority places, no fewer than 35 are represented by Conservative MPs, or a majority of Conservative MPs. Finally, let us look at how this will affect Scotland. Levelling up is not about levelling up when it comes to Scotland; it is about taking powers away from the Scottish Government. Under the EU structural funding system, the Scottish Government, together with the European Union and local authorities, designed projects that now depend on the whim of Whitehall.

Levelling up is an utter myth in these days of austerity and the Tory cost of living crisis, and the sooner the Tories get the message about that, the better we shall all be.

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[Selaine Saxby]

I thank all hon. and right hon. Members for their contributions this afternoon, the Minister for his ongoing engagement with me in this role and in his previous roles and for listening to me about my rural issues, and the Backbench Business Committee for facilitating this important debate.

It seems bewildering that the SNP spokesman, the hon. Member for Perth and North Perthshire (Pete Wishart), still cannot grasp the concept of pockets of deprivation. As a former maths teacher, I can tell him that he clearly needs a lesson in averages and variants. Indeed, many of the innovative solutions suggested by my Conservative colleagues cost nothing at all. As we look to lift up our communities, the SNP policies and rhetoric look to drag theirs down.

I very much hope that word will reach the Chancellor about this afternoon’s debate ahead of next week’s autumn statement and that our rural councils will receive the funds needed to continue to deliver vital services, which, quite simply, cost more in rural Britain.

As the number of Conservative colleagues in the Chamber this afternoon demonstrates, we are quite clearly the party of rural Britain. I hope that under our new Prime Minister and our new ministerial teams we will work harder, faster and smarter cross-Department to level up rural Britain.



Question put and agreed to.

Resolved,

That this House has considered the matter of levelling up rural Britain.

Private Rented Sector White Paper

Selaine Saxby Excerpts

Thursday 3rd November 2022 Commons Chamber

[Selaine Saxby (North Devon) (Con)]

I thank the hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle) and my hon. Friend the Member for Dover (Mrs Elphicke) for securing this important debate.

Apparently I have mentioned this in the House before, but North Devon has a housing crisis. The enormous growth in short-term holiday lets and second homes has resulted in an unsustainable shortage of houses for local residents to live in. Matters are now at such a stage that many businesses and public services are simply unable to recruit and numerous businesses are unable to operate full time.

Many will say, “Well, don’t you welcome your tourists?”. Indeed we do welcome our tourists, but we would like them also to eat in our local pubs and restaurants, which are unable to open full time because they cannot get staff, because there is nowhere for anyone to live.

The private long-term rental sector across Devon has declined by more 50% in the last two years and by more than 60% in my own North Devon constituency. Unfortunately, Government policy has not helped. The changes to landlord tax relief made it preferential to have a short-term furnished holiday let rather than a long-term rental tenancy.

Although the changes were introduced in 2017, they only became fully effective in 2020, when most of us were rather consumed with the pandemic, and came into effect at the same time that people were suddenly desperate to escape to wide-open spaces such as my beautiful constituency. Moreover, as soon as we were allowed to go on holiday, people rushed to North Devon and the prices paid for our holiday lets soared.

In addition, the legislation we passed only last week to raise stamp duty thresholds still applies to second homes and holiday lets. That is more complicated, because we desperately need more people to become long-term landlords again—we must find a way to reverse the demise we have seen in that area. I recognise the challenges, but I hope that we will be able to consider how some of the policies designed to help people to get on to the property ladder are just facilitating more people’s buying second homes or short-term holiday lets that sit empty for half the year.

The Department for Digital, Culture, Media and Sport’s consultation on a registration scheme for second homes or short-term holiday lets is now complete, but we still have no date for when the results will be released, which leaves councils with few tools available to them to tackle the surge in properties that lie empty for months of the year, yet are still more profitable to their landlords than a long-term rental. We must ensure that there are change of use clauses for properties made into holiday lets. Those properties were built as homes and should be lived in. If they are a business, they should have to declare a change of use and be taxed accordingly.

This situation is made even harder by the increased requirements on landlords with regard to energy performance certificates, with rural and coastal properties often requiring huge amounts of investment to achieve the necessary rating. That is resulting in even more rental properties being sold or converted to less regulated short-term holiday lets. While I agree that we must ensure properties do not leak, we need to recognise that rural housing stock is very different from urban housing stock and find other, more creative ways to tackle this, so that landlords do not take the logical way out of selling or moving on to a different type of tenancy.

Swathes of long-term tenants in my constituency have found themselves evicted under section 21 notices, so that landlords could take advantage of the tax breaks available to them when their property is let out as a short-term holiday let. Post pandemic, a small two-bed long-term rental in my patch may cost £800 a month, whereas a short-term holiday let will cost at least that per week, and probably double.

Because of the lack of rental properties in my patch, when people are evicted, there is simply nowhere to go. The council housing list is so long that people are being rehomed as far away as Bristol. Some families stay in the area for their children’s schooling, and we now have multiple children being bussed or taken by private taxi 10 to 15 miles each morning to their primary school. At a time when council resources are under pressure, we are adding layer upon layer of extra cost, simply because we do not have enough homes for people to live in.

For tenants, section 21 notices have been horrific—we all have awful stories of people’s experiences—but not all landlords are bad. Many find themselves struggling to evict people who have not paid rent, for example, and section 21 notices are taking up to 18 months to get through the courts in my constituency. I hope that, as we see some progress in this area, landlords are not demonised, because we need more landlords to come forward, so that we can tackle this section of the market. It is the relationship between landlord and tenant that drives a successful rental relationship. Although we feel that that relationship is unbalanced at present, I hope we can support both sides of this delicate balance. We need to find a way to give security to tenants but also give landlords the ability to evict when they genuinely need to. The concern with some of the proposed legislation is that we are already seeing landlords choosing not to risk not being able to evict a tenant. When a landlord could have a short-term holiday let in my patch, why would they have a long-term rental?

We need the housing stock we have to be better utilised and not sat empty for half the year, but I do not disagree that we need to build more homes. Over 16,000 people are currently on Devon’s housing lists, and even if those lists closed now, at the current rate of building, it would take over 32 years to clear the backlog. We need urgent intervention in the housing market in Devon and many other places around the coast. The demise of long-term rentals makes moving to remote, rural and coastal locations to work nearby impossible, and we have so many job vacancies that many companies are simply not operating at full capacity. If we want economic growth, we need workers who can live close to their place of work and find affordable accommodation.

For communities to thrive, they need people living there all year round, so that we do not have the winter ghost towns that blight far too many of our popular tourist destinations. We warmly welcome tourists, but the balance between visitors and workers is now not there, and urgent intervention is needed. MPs in seats like mine have been raising these issues for years with multiple Ministers, and I hope that this Minister will remain in post long enough to deliver substantive change and find a way to reverse the demise of the long-term rental sector.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call Florence Eshalomi.

--- Later in debate ---

[Felicity Buchan]

Specifically, that falls under the DCMS, but I am happy to have a conversation with the hon. Lady.

[Selaine Saxby]

The DCMS consultation took months to see the light of day, and my local council submitted pages of evidence. I recognise that the issue falls within the remit of the DCMS, but one of the reasons constantly given for the inability to tackle it is that it lies with a different Department, either LUHC or DCMS. If anything can be done to bring the Departments together to enable progress to be made, we would be most grateful.

[Felicity Buchan]

I hear my hon. and good Friend, and I will do everything I can to facilitate that.

I hope that all Members present today recognise that this Government are committed to reforming the private rented sector in a fair and balanced way, abolishing no-fault section 21 evictions and strengthening and clarifying landlords’ rights when seeking possession.

Oral Answers to Questions

Selaine Saxby Excerpts

Monday 17th October 2022 Commons Chamber

[Mr Clarke]

I am very happy to look at the situation affecting the hon. Lady’s constituent; it is something about which I always welcome discussion. We do have discretionary housing payments for people in very hard situations such as the case to which the hon. Lady refers. On the timetable for rental reform legislation, we will bring forward legislation when time in Parliament allows. That is an obvious priority for the whole Government.

[Selaine Saxby (North Devon) (Con)]

My constituency has seen its supply of private rental properties drop by more than 60% in the past two years owing to the surge in short-term holiday lets. What plans has my right hon. Friend to redress the situation?

[Mr Clarke]

My hon. Friend is a consistent and effective advocate for the issues that affect rural constituencies such as North Devon, and I recognise—not least as a result of our conversations about the subject—just what a problem this is for her constituency. We are looking at all the options to ensure that there is a proper supply of rental properties in such areas.

--- Later in debate ---

[Mr Clarke]

The hon. Gentleman makes a powerful case on this issue and I commit the Department to meeting to discuss it.

[Selaine Saxby (North Devon) (Con)]

How will my right hon. Friend ensure that affordable houses are built in rural Britain if the development size limit moves from nine to over 40?

[Mr Clarke]

I thank my hon. Friend for her question. We are looking at all the measures that can be used to drive forward and accelerate housing growth, but as I said in response to the right hon. Member for Exeter (Mr Bradshaw), there are compelling reasons why this option has not been pursued before, and I hope that will give some comfort to my hon. Friend today.

Coastal Communities

Selaine Saxby Excerpts

Thursday 8th September 2022 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Dr Huq. I have the great pleasure of representing Wirral West, which forms the north-western part of the Wirral peninsula. The coastal towns and villages of Meols, Hoylake, West Kirby, Caldy and Thurstaston offer stunning views across the Dee estuary to Hilbre island and the Welsh hills in the distance, or out across Liverpool bay to Crosby, Formby and Southport. It is an area well known for the opportunities it provides for sport and leisure activities, both for local people and people from much farther afield.

Last Saturday, I visited the Royal National Lifeboat Institution station in Hoylake for the West Kirby and Hoylake RNLI meet and greet day. It was a fantastic event, and provided the opportunity for visitors to climb on board the lifeboat and the hovercraft, explore the lifeboat station and meet the staff and volunteers. I heard about the rescues they perform, and I take this opportunity to pay tribute to the immense courage, selflessness, skill and strength that they show in saving lives at sea. The RNLI is massively important to the local community, which supports it a great deal and is rightly proud of the work it does. Standing in the lifeboat station and looking out across the beach caused me to reflect on the wide range of water sports and activities that take place there, including walking dogs on the beach, riding horses, going out to Hilbre island to look at the seals, sailing, kayaking, paddleboarding and so forth.

The coast is a fantastic amenity for locals and visitors alike, and it is heavily reliant on one key ingredient: the sea. The quality of water matters, but it is at risk from sewage. I am concerned that it may now also be at risk from industrialisation, because this morning the Prime Minister announced that she will lift the moratorium on extracting shale gas. My constituents will be extremely concerned about that announcement.

The natural world is immensely important to the character of Wirral West. Back in 2013, under the Conservative-Liberal Democrat coalition Government, a conditional licence was granted for underground coal gasification in the Dee estuary. Like fracking, it is a risky technology for extracting fossil fuel. I have led a campaign against UCG in the Dee since 2013, and public opposition to the industrialisation of the Dee off West Kirby and Hoylake is extremely strong. The estuary is a site of special scientific interest and a place of international importance for bird life. It is important that we protect the quality of the ecosystem, so my constituents will be alarmed by the Prime Minister’s announcement this morning. I call on the Government to think again, restore the ban on fracking and put in place an outright ban on UCG too.

Sewage is also of great concern. One of my constituents wrote to me about her experience of kayaking. She said that she

“noticed a horrible scum on the water”,

which entered her kayak. She added that

“the evidence of raw sewage was obvious”.

Given that the Prime Minister was responsible for cutting millions of pounds of funding earmarked for tackling water pollution during her time as Environment Secretary, people have every right to be concerned that the Government will not take this issue seriously.

[Selaine Saxby (North Devon) (Con)]

Will the hon. Lady give way?

[Margaret Greenwood]

I do not have enough time, so I will carry on.

I ask the Minister to respond to that point. The Government recently published their storm overflows discharge reduction plan, but although it appears to provide for an increase in the monitoring of overflows, the question remains whether the Environment Agency and Ofwat will then use that data to take tough action. I call on the Minister to set out how the Government intend to address sewage on our beach, UCG and fracking.

--- Later in debate ---

[Selaine Saxby (North Devon) (Con)]

It is a pleasure to serve under your chairmanship, Dr Huq. I thank my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) for her excellent speech and for bringing forward this debate. I reiterate her request for a coastal Minister, as the issues we experience around the coast are unifying. As we look to level up this great country under the new Administration, I very much hope that we can move away from the north-south divide and level up around the coast.

The hon. Member for Wirral West (Margaret Greenwood) did not take my intervention, but I also represent a very beautiful coastal constituency and I have been concerned about water quality this summer. It is very important that we recognise the difference between algal blooms and sewage discharge. My constituency has not had sewage discharge this summer, but we have had significant algal blooms due to the heat.

I do not want to focus on sewage today. I want to use the opportunity of having the levelling-up Minister here to talk about coastal communities and the issues that are particularly prevalent in the Devon and Cornwall peninsula following the pandemic, with the immense shortage of affordable housing that our local residents can move into and purchase.

Our beautiful area has seen a surge in short-term holiday lets and the second homes market. I very much hope that the Department for Digital, Culture, Media and Sport consultation on holiday lets registration goes ahead. I also hope that there are opportunities in the Minister’s Department to impose planning restrictions to reduce the number of holiday lets that come to market. When new properties are built, a change of use should be required if they are to become a short-term holiday let. Communities such as mine need homes for people to live and work in. We love our tourists and we would never want to stop them coming, but our housing market has got completely out of balance.

In North Devon, we are not the most productive, unfortunately, and our wages are really very low. Full-time workers in North Devon currently earn £13.29 per hour, while the south-west average is £14.67 and the Great Britain average is £15.65. Our property prices have shot up by over 22%. We are the second fastest growing property price area in the country, but our house building rate has not grown that much and the vast majority of what is being sold is going in the form of second homes or holiday lets. If this continues, we will no longer have coastal communities; we will have winter ghost towns. We need urgent intervention through the levelling-up White Paper to tackle the issue.

Ilfracombe in my constituency is regularly defined, unfortunately, as being home to the poorest wards in the whole of Devon, and among the 5% poorest wards in the entire country. The issues in towns such as Ilfracombe have been documented for decades, yet we seem unable to grasp the fact that these things are happening all the way around our coast. Each coastal MP will have similar stories to mine. Life expectancy for people in Ilfracombe is 10 years less than that for those in the south of the county.

[Craig Mackinlay (South Thanet) (Con)]

Will my hon. Friend give way?

[Selaine Saxby]

Unfortunately, I must not—

[Dr Rupa Huq (in the Chair)]

Order. We are not taking interventions, and the time limit is about to vanish.

--- Later in debate ---

[Selaine Saxby]

I will end by saying again that I hope that, in addition to the establishment of a coastal Minister, we should reinstate the coastal communities fund, so that these fantastic places to live and work can continue to be just that.

--- Later in debate ---

[Lia Nici]

Yes, I will write to the hon. Gentleman with those details. Thanks to the coastal communities fund, more than 7,000 jobs have been created, 2,000 existing jobs have been safeguarded, thousands of training places for local people have been produced and more than 3 million visitors were attracted to coastal areas. It is estimated that those visitors brought hundreds of millions of pounds of expenditure into our coastal communities, and that the funding supported almost 9,000 existing businesses, while helping to launch hundreds more.

[Selaine Saxby]

I agree entirely that the coastal communities fund was a truly excellent thing. Please can we have it back?

[Lia Nici]

I thank my hon. Friend for her question. I will certainly take it back to the Department, although I am not sure how long I will be in this position. I hope it will be for a little bit longer.

With regard to other funding streams and the success of the coastal communities fund, it is right that we now focus our regeneration efforts around coastal communities through our larger and more expansive programmes as part of a more joined-up approach to levelling up. As we have heard from many Members today, the Department for Levelling Up, Housing and Communities is not the only Department touched by coastal communities. There are also the Department for Business, Energy and Industrial Strategy, the Department for Environment, Food and Rural Affairs, the Department for Digital, Culture, Media and Sport—the list goes on—but I will go back into the Department and make sure that we are talking across all Departments to ensure that we get those benefits that Members are looking for.

We also have a long-term ambition to reduce the alphabet soup of Government funding streams. Now that the coastal communities fund has closed, my Department has taken care to ensure that coastal communities of all sizes remain at the heart of our continuing regeneration programmes. For example, there are 22 coastal towns that are each recipients of towns deals worth up to £25 million, including places such as Whitby and Birkenhead. Overall, coastal areas will benefit from over £673 million-worth of investment via the towns fund alone. The towns fund is specifically targeted at places with high levels of deprivation, which makes it a good fit for some of our coastal towns, as we have heard today. Our towns deals unleash the potential of our local communities by regenerating towns and delivering long-term economic and productivity growth—productivity has been a theme throughout the debate. This is through investments in urban regeneration, digital and physical connectivity, skills, heritage and enterprise infrastructure.

Other coastal communities, such as Maryport and South Shields, are benefiting from future high streets fund grants to revitalise their high streets. We have also heard from my hon. Friends the Members for Ynys Môn (Virginia Crosbie) and for Dover (Mrs Elphicke), who have put in bids for other funds as well. We need to make sure that we continue to revitalise our high streets for our future generations. The future high streets fund is focused on renewing and refreshing high streets, by boosting footfall and reducing vacant shopfronts, for example. In total, coastal communities will benefit from £149.7 million-worth of funding via the future high streets fund. Every one of our programmes, from the community ownership fund to the levelling up fund, features multiple coastal communities on their list of successful bids.

Levelling-up and Regeneration Bill

Selaine Saxby Excerpts

2nd reading
Wednesday 8th June 2022 Commons Chamber

[Selaine Saxby (North Devon) (Con)]

It is a pleasure to speak in this debate. I welcome so much of this levelling up Bill. I will address my comments to the housing issues in my beautiful constituency, which I know are reflected across rural and coastal constituencies around the country. I would also like to take this opportunity to put on the record my thanks to the Minister for letting me repeat myself time and time again, and for his constant engagement on this matter. I very much hope that, as the Bill makes its passage through the House, I might be able to persuade him to consider what, to my mind, is currently missing from it.

The peninsular of Devon and Cornwall has seen an explosion in short-term holiday lets and second home ownership, particularly since the start of the pandemic. We recognise the importance of our tourism economy, but our housing market is now simply out of balance. We just do not have homes for people to live in if they work locally. The affordability issues already spoken about by other colleagues from Devon are replicated even more so in North Devon, where we have the second fastest growing house prices in the country, with a rise of over 22% this year alone. Put simply, wages are not keeping up. Since 2016, Devon has seen 4,000 homes come out of private rent and 11,000 join the short-term holiday listings. As of today in Ilfracombe, a rural and coastal town with a population of 12,000, there is one long-term rental available on Rightmove, but if people would like to come on holiday there this June, there are 560 available options. That imbalance is simply unsustainable for us.

The demand for social housing in rural communities is growing six times faster than the rate of supply. At current rates, the backlog of low-income families needing accommodation will take 121 years to clear. We need to find other ways to enable people to build houses and for local people to move into them.

I am pleased that my Lib Dem council has finally started taking some action today, as it does have tools in its toolbox. I first wrote to it more than a year ago, so it is a delight that it is starting to tackle the issue of the derelict properties that are scattered across my constituency. However, so much more still needs to be done.

There is far too much leeway for homes to be built without meeting affordability needs, and in order to address the problem of vacant and second homes, additional planning measures are needed. Although the council tax changes are welcome, they will not be sufficient and are already incurring unintended consequences. I very much hope that a new clause can be added to the Bill to require planning permission to change homes from other tenures into short-term tenancies and holiday accommodation.

The Secretary of State spoke about creating neighbourhoods, not dormitories. We need to create communities in which people who work locally can also afford to live. At present, we are at risk of becoming just a winter ghost town.

[Several hon. Members rose—]

Oral Answers to Questions

Selaine Saxby Excerpts

Monday 16th May 2022 Commons Chamber

[Michael Gove]

I am grateful to the hon. Gentleman for raising the issue of the importance of the Scottish Government and the UK Government working together on levelling up. That is why I am so pleased that, working with the Finance Minister in the Scottish Government, Kate Forbes, we have been able to agree a prospectus for two new freeports in Scotland. I am sure that Fife will be one of the communities, areas and local authorities that will be working with the UK Government to exploit the opportunity that freeports provide outside the European Union.

[Selaine Saxby (North Devon) (Con)]

T8. I welcome the proposals to ensure that empty shops have to be rented, but will the Minister explain whom they will be rented to? Will this enable upper floors to be converted to much-needed affordable housing? When will we see progress on filling key visible empty units in town centres such as Barnstaple?

[The Minister for Housing (Stuart Andrew)]

High street rental auctions will apply to commercial property and make tenancies more accessible to businesses and community groups. We recognise the importance of diversifying high streets and have introduced permitted development rights to allow a wide range of commercial buildings to be changed to residential use without the need for a planning application. My hon. Friend is right: depending on the circumstances and the type of building, there could be opportunities to increase housing in areas such as hers where there are real challenges.

Affordable Housing (Devon and Cornwall)

Selaine Saxby Excerpts

Wednesday 27th April 2022 Westminster Hall

[Selaine Saxby (North Devon) (Con)]

I beg to move,

That this House has considered the availability of affordable housing in Devon and Cornwall.

It is a pleasure to serve under your chairmanship, Mr Hosie. I hate the word “crisis”, but there is no doubt in my mind that we have a housing crisis across Devon and Cornwall, which is particularly acute in my constituency of North Devon. It means that there is virtually no housing available for local people, affordable or otherwise. This weekend, the Chamber engagement team secured over 200 responses, the strength of feeling is so high. It is my constituents’ experience of this issue that drove me to apply for today’s debate.

Carol, one of my constituents, says:

“For me personally I am a single woman two years off retirement, I will not be able to retire completely because private rents are too high for one person on a pension. I am at risk of being homeless because of this. I’m not eligible for help if I lose my house because I cannot afford to live here anymore.”

Rachel says:

“We’ve been given notice to move out after 10 years so our landlord can use the house for family holidays. But we cannot find another family home in Braunton—there’s simply nothing available, likely due to the increased number of holiday lets.”

Kathryn says:

“We were saving to buy a house 3 years ago, unfortunately having reached our savings target 18 months ago, we have been unable to buy due to the huge increase in house prices in North Devon during the last 2 years. We now require more than double our original savings target for a deposit so are stuck renting until something changes.”

Stephanie says:

“Despite working, two of our children who live in Devon with children of their own are now suffering poverty due to high and increasing rent and no possible chance of either social housing or owning a home. They are likely to need deposits of approximately £150,000 as their wages would only cover a mortgage to approximately £90,000. It’s no good claiming there are schemes where only 5% deposit is needed when house prices far exceed earnings.”

So what exactly is going on? Figures from the Land Registry show that house prices in North Devon have risen by 22.5% against a UK average of 8%, the second highest increase in England, with neighbouring Torridge coming in fifth at 19.9%. At the same time, we have seen a complete collapse of the private rental sector as landlords take advantage of the surge in domestic tourism during the pandemic. Currently, Barnstaple, with a population of over 35,000, has just three private rentals available on Rightmove and 234 holiday lets on Airbnb.

[Sir Geoffrey Cox (Torridge and West Devon) (Con)]

Does my hon. Friend agree that the situation at the moment allows landlords to buy up good residences in towns such as Barnstaple and Bideford, register themselves as businesses, apply for small business interest rate relief, pay nothing to the community, either in council tax or business rates, and provide very little by way of employment, and that that racket has to be stopped?

[Selaine Saxby]

As always, my right hon. and learned Friend and neighbour makes an excellent point. There is so much that needs to be done in Devon and Cornwall.

Building on the point I was making about the availability of property, today Ilfracombe has just one private rental and over 300 holiday lets. Apparently there has been a 67% reduction in rented housing between 2019 and August 2021, making North Devon the worst affected area in the south-west and the fourth worst nationally. Despite an improvement in the management of the list, the council reports a 32% increase in applications, with local affordable housing providers advising that there has been an increase of four to five times in the number of applicants for each new affordable rental property. From the data available, our district council reports that we have lost 467 houses from the permanent occupied market to second homes and short-term holiday lets, at a time when the rate of new developments has dropped right off due to the pandemic.

[Simon Jupp (East Devon) (Con)]

Does my hon. Friend agree that the Government need to consider a bold policy intervention to tackle the impact of second home ownership? One such policy could be to allow councils to reserve a percentage of new builds for people with a local family or economic connection to an area.

[Selaine Saxby]

I agree with my hon. Friend. In my constituency many of these homes are reserved for local people, and I will explain some of the further issues later in my speech. I know that the Secretary of State has conceded that we have not built enough affordable homes, and he is right.

[Neil Parish (Tiverton and Honiton) (Con)]

I thank my hon. Friend for securing the debate. In Cullompton in Mid Devon, we are putting up Zed Pods, which are very good modular homes that are zero carbon and equipped with triple glazing. They are also going on to garage sites and the like, and can be put up quite quickly. If we want to push to get more housing done, that is one way in which we could produce affordable, good-quality housing that is good for the environment and help reduce waiting list numbers.

[Selaine Saxby]

That highlights another important point, which is that a large number of small district councils in Devon are all tackling the same issue and coming up with different solutions. In fairness, building rates in North Devon have been good historically. However, we are currently averaging only 18% affordables on each development. As the Affordable Housing Commission concluded in 2020, many of these products are

“clearly unaffordable to those on mid to lower incomes.”

With some of the lowest productivity figures in the country and an abundance of part-time and seasonal work, we clearly have a lot of residents in that category.

[Anthony Mangnall (Totnes) (Con)]

My hon. Friend makes a good point about affordability. Does she agree that it is important to ensure that our county council statistics on average earnings are reflective of what in-county people earn? All across Devon, average earnings per year do not relate to the people who want to be able to afford houses and who work in the same area.

[Selaine Saxby]

My hon. Friend makes a good point. That is particularly the case in the south of our enormous county, where people can go out to other places, whereas we up in the north are very much—unless we work in London—in North Devon. Many new builds there are being snapped up as holiday lets or second homes. Many never even make it to market; they are purchased off plan before local residents see the light of day.

Building right down the Devon and Cornwall peninsula is difficult. We have higher land prices, particularly on the north coast, and fewer resources to build and materials to build with, making viability so challenging that the percentage of affordables drops right off. Many of the issues impacting on the housing market at present are particularly extreme on the coast, and we have an abundance of beautiful coast in Devon and Cornwall.

North Devon has an abundance of tiny communities looking to community land trusts, but products that should work well there repeatedly find that the high-unit grant rates required on often challenging sites with high abnormals still have a funding gap of £30,000 per unit, and that is despite the generous registered providers and grant rates from Homes England’s affordable homes programme.

I hope that I have detailed the magnitude and complexity of the problem. I have been walking this road for over 18 months and am grateful to the ministerial team for hearing from me quite so often on this topic. However, what I am struggling to convey is the urgency of the need for a solution.

With summer approaching, we are expecting and, indeed, seeing another surge in section 21 notices, as landlords find ways to evict tenants to enable them to convert these homes into holiday lets. With no registration scheme in place, there is no formal record of how many people are renting properties out on a short-term basis. We desperately need the consultation on the registration of short-term holiday lets to conclude, but it has not even started, despite having been announced last June. The Department for Digital, Culture, Media and Sport assures me that it is imminent, and even Airbnb is calling for one.

Having spent much time with housing providers, I know that they believe that the only solution is to devise another class of planning for short-term rentals, so that councils can differentiate between C3 housing and what would be, in essence, a commercial venture in short-term holiday lets. Local councils could then require licences to run that type of business in a property that was initially built for full-time residency, and limits could be placed in a community if there is deemed to be an imbalance.

We have always welcomed holidaymakers and second-home owners to our beautiful coast, but we have got out of balance, leaving the fabulous pubs, restaurants and hotels that people come to visit—and even our surf schools—unable to recruit enough staff. The situation has extended to our public services, with transferring personnel, however senior, struggling to find housing. With vast distances between so many communities, the increase in the cost of fuel and the absence of public transport, if there are not enough people living close to jobs that are paid a living wage, it is simply not worth travelling to get there in North Devon. We have already seen teaching assistants move out of jobs they love, simply so they can work closer to home. If there are no homes near someone’s job, it leads to jobs being returned, as people simply cannot move into the area.

I believe that we also need to go beyond just tackling business rates on short-term holiday lets; we need to tackle the inequalities between mortgage relief on long-term and short-term rentals, which are viewed as capital assets. Their profits are taxed differently, as returns on capital. Both types of property were built as homes, and they should be taxed comparably. Without a register of short-term holiday lets, I imagine that many are paying no tax at all, which is another opportunity for the Treasury. This is a step that could be taken rapidly to make the private rental sector more appealing to landlords, which is ultimately a step that we need to take quickly in order to begin to provide more housing in the south-west.

Other steps that could be taken rapidly include recognising that Devon has a large number of small planning authorities that all tackle the same challenges, with most having under-resourced planning departments, as detailed in previous recruitment challenges. Will my right hon. Friend the Minister commit to assist our planning departments to reverse building where appropriate, to stop building properties solely for holiday lets or second homes, and to have a clause that exempts people from living there full time? It is one thing for holiday parks, which are designed that way, but actual housing is being built with this restriction in place along the North Devon coast. Clearly that is needed on occasion, but as we have such a shortage of long-term housing, can we not focus on this, given that we are short of the other necessary resources—land, builders and materials?

Will my right hon. Friend the Minister also commit to work with the Treasury to look at taxation reforms and how to tackle the issue of empty properties? We have an abundance of them in North Devon, but it is simply not viable for the council to spend its time and resource on tackling this issue. If we could breathe life into empty buildings, we could take steps to regenerate additional housing, without building all over the beautiful fields of North Devon. I keep being told that the councils have it in their remit to convert space above empty shops into homes. Will someone please come to Barnstaple and make that happen? We have so many empty units with huge storage areas, rather than flats, above them, and tackling this issue could transform our town centre as well as provide vital accommodation.

Finally, please can steps be taken to tackle the issue of viability and barriers to councils being able to build developments with more than an 18% social housing component? I know that we English believe that our home is our castle, but far too many of the residents of North Devon worry about not having a home at all. That causes mental health issues, which are exacerbated further by having so many shortages in mental health services, as we cannot recruit to fill the vacancies.

We get really big storms in North Devon, and we are stuck in a really big housing storm right now. Without urgent intervention, we will have literal ghost towns and villages along our coast next winter, as locals have their homes and opportunities to live and work in their community ripped away from them by something like the Kansas twister. I hope that we can say goodbye to the yellow brick road and that some affordable housing wizardry will be expedited this afternoon.

--- Later in debate ---

[Selaine Saxby]

It has been a pleasure to serve under your chairmanship, Mr Hosie. I am delighted to have welcomed colleagues to speak this afternoon and I thank them all for coming. I thank the Minister for his response; the roundtable will of course welcome him to North Devon as the first bid for that trip—[Interruption.] I had already texted.

This afternoon, I really would like to stress the urgency of this issue. We have been talking about it for a very long time, and although we recognise that the Minister is relatively new to his post, we have been here before and we need something to happen this summer. I hope that he will be able to nudge his colleagues in the Treasury and the Department for Digital, Culture, Media and Sport to deliver the other bits of the jigsaw puzzle.

Question put and agreed to.

Resolved,

That this House has considered the availability of affordable housing in Devon and Cornwall.