Housing: Rental Market

Debate between Viscount Younger of Leckie and Lord Whitty

Monday 28th October 2019 Lords Chamber

[Viscount Younger of Leckie]

I can only quote the figures that I have given noble Lords, which show that there is an increase but it is not having an impact on private rented property. As I said, we want to continue to follow the advocation for self-regulation and to support local authorities. In 2018, the Short Term Accommodation Association implemented the considerate nightly letting charter with Westminster City Council. With the fines that have been imposed—I have the details of those—it seems to be working. As I said, we are determined to follow the voluntary approach at present.

[Lord Whitty (Lab)]

My Lords, a few months ago, I asked Ministers what they were doing about the situation where leaseholders and tenants of social housing were subletting to Airbnb and equivalent bodies, and the Minister indicated that it was not their problem but it was local authorities’ problem. I now ask about an issue that clearly is central Government’s problem: how many of the 80,000 odd premises that are let to Airbnb in London are registered for business rates, business for profit tax or VAT, because this form of tourism is detrimental to a lot of areas in central London where people live and where housing is in very short supply?

[Viscount Younger of Leckie]

As I said earlier, we think it is right that local authorities remain responsible for this area. Westminster City Council has investigated or is in the process of investigating over 1,500 properties for unlawful short-term letting. In one case earlier this year, a fine of over £100,000 was imposed. But the noble Lord is right that those who let out their properties for Airbnb must pay taxes. That is something that local authorities should look at. Of course, when they register, local authorities can find out who the hosts are and whether taxes have been paid or not.