Summer Adjournment

Andrew Stephenson Excerpts

Tuesday 19th July 2011 Commons Chamber

[Andrew Stephenson (Pendle) (Con)]

On 14 June I led a Westminster Hall debate on the effect of property regulations on holiday lettings. In that debate, I urged the Department for Communities and Local Government to look again at the effect that changes to property regulations would have on holiday lettings and domestic tourism. The key regulation I talked about relates to the fact that as of 30 June new rules, introduced by DCLG, came into force requiring the owners of holiday lettings to obtain an energy performance certificate, or EPC. That is being defended as a European Union requirement when it is not being adopted by any other European country. This will force an unnecessary, costly, pointless and, I believe, legally questionable burden on holiday lettings, doing damage to British tourism in my constituency and many others.

In my Westminster Hall debate, I examined a range of possible reasons for this change and discounted each in turn, concluding that the only possible justification could be that this is being demanded by Europe. However, as I pointed out, it is not being implemented by any other European Union country. In response to my concerns, the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Hazel Grove (Andrew Stunell), made a number of points. In reply to my assertion that England and Wales would be the only countries enforcing this, I was told that it was already a requirement in Scotland. However, I would like to make him aware that the regulations in Scotland are somewhat different from those being imposed by his Department in England and Wales.

An answer from the Directorate for The Built Environment in Scotland states that EPCs are not required for holiday lettings unless the property is let to the same person for more than 12 weeks. The advice is clarified by the Building Standards Agency in Scotland, which also says:

“An EPC is not required for a property sold for the purpose of a holiday”,

so the regulations in Scotland are very different from those in England and Wales. Very few people rent a holiday property for 12 weeks of the year and if this rule was applied to England and Wales, the number of holiday lets requiring an EPC would fall dramatically.

On the way in which other European countries are implementing the directive, the Minister went on to say:

“My hon. Friend produced some information about what France had done, and referred to the fact that a provider of holiday lets in his constituency had evidence from a much wider field around Europe. I hope that he will accept, as a glimmer of light, that the very first thing I shall do after the debate is seek whatever validation we can for those two pieces of evidence. We do not want providers in England to be at a disadvantage to other European countries simply because we have taken too robust a view of how the directive should be interpreted.”—[Official Report, 14 June 2011; Vol. 529, c. 236WH.]

I welcomed that commitment from my hon. Friend. I know that he is not due to give the response today, but I wonder whether the Minister who is present has received validation on the two points. I ask because in addition to the much more sensible interpretation in Scotland, my research still indicates that EPCs are not required for holiday lets in France, Denmark, Sweden or Germany. Given that, it seems likely that they are not required in other European countries.

That brings me on to the question of who we class as a “tenant”. During the debate on 14 June, the Under-Secretary made the point that the way in which the DCLG was interpreting the European directive was that people renting the cottages in this country were “tenants”. That view has been robustly rejected by the English Association of Self Catering Operators, which has obtained a 16-page Queen’s counsel’s opinion on this matter.

In conclusion, my intention all along has been to help Ministers to reduce the burden of red tape on small business. I feel that they have done a good job so far, but with these new regulations they are going in the wrong direction. I ask the Minister to reconsider them.