Renters (Reform) Bill

Anthony Mangnall Excerpts

Report stage
Wednesday 24th April 2024 Commons Chamber

[Mr Betts]

It is disappointing that we are having to focus primarily on the Government back-pedalling on the timetable for the abolition of section 21. The Levelling Up, Housing and Communities Committee looked at this a year ago and concluded unanimously that the principle of the Government’s intention was right. We had some reservations and caveats, and we raised concerns and suggested detail changes, but nevertheless we agreed on the principle. Generally speaking, there is agreement across the House that it is the right thing to do.

In the meantime, people are living in uncertainty in private rented housing. That is why we thought it was the right thing to do. That is what the measure is for: to give people greater certainty about where they will be living in a year’s time. It is not merely that; it is also so that they know, if they do not have a car, that they can get on the bus to their place of work in the morning—if the landlord evicts them and they have to move home, will they be able to get to that job in the future? It is also about children at school: will those children be able to get to the same school if they are evicted from their home and have to find a new property? That is the sort of family certainty that the abolition of section 21 will introduce. So many families are living in uncertainty—not just housing uncertainty but other uncertainty—while we await that abolition. The Minister needs to get on with it and give us some clear time commitments on when it will happen.

We have just discussed the problem of the courts. Of course, covid has affected lots of public services, but I say to the Minister that it is not a surprise. If we look at how long it was taking local authorities to get court hearings to deal with antisocial behaviour cases before covid, we see even then that those ran into months. It has been a problem in the courts for many years. That is why the Committee has suggested—it has been suggested before—a housing court system. I know that Ministers do not want it and that the Ministry of Justice does not want it, but it seemed to us a way of resolving what are often simple or quick problems. A small claims court format could do it in many cases without the need for lawyers to be introduced. I am sorry, but I have no conviction that, with several months of looking at this, several years of contemplation and plans for action, the courts will be any quicker in two or three years than they are now. The court system has delays, and they are likely to remain, so we need to look a bit beyond the existing system to resolve these problems. Obviously, Ministers have set their minds against that.

I turn to the other main problem that we highlighted on implementation: local authorities and their staff. We know that local authorities are desperately short of staff for enforcement in the private rented sector. Once section 21 goes, tenants who are currently frightened—even those living in appalling damp properties—to make complaints against their landlords, because they are concerned they would be evicted as soon as a complaint is made, will feel emboldened to make that complaint, and if their complaint is not listened to, they will be emboldened to go to their local authority and ask for help. Local authorities will get more requests for help, and they have not got the people to deal with that.

Will the Minister assure us that he is starting to talk to the Local Government Association about the new burdens that will be placed on local authorities—this is a new burden that we are imposing on them, albeit a good one—and that there is some agreement on the resource that will be needed? Resources do not produce extra staff overnight, so local authorities will need advance warning so that we have the staff in place to respond quickly.

[Anthony Mangnall (Totnes) (Con)]

I apologise for interrupting the hon. Gentleman. Given the important point he is making about redress for tenants and who they might go to, would he add any comment on consumer protection for unfair trading, which is one of the remedies for those who have difficulties with either the standard and quality of their property or the landlord, as well as those who have been mis-sold for a rental period?

[Mr Betts]

I think the reality is that local authorities are generally short of resources right through, as the Committee’s recent report on local authority funding—again, it was unanimously agreed—showed. Because of the demands of social care on local authority budgets, other services are often cut even more than the mainstream. We have previously looked at trading standards and consumer protection, which are an important element—the hon. Member is absolutely right—and I hope that they will be factored in when we have the new burdens discussions.

There are some things that the Minister could resolve fairly quickly. He referred to the important role that the ombudsman can play in resolving disputes. There is sometimes a bit of a conflict between whether someone goes to the ombudsman or to the courts—sometimes, the ombudsman will not deal with a case if it is in the courts. It would be helpful to clarify those issues. But why does he not just decide that the housing ombudsman, who currently deals with social housing issues, will also deal with private sector housing? He should make that decision. Again, if the ombudsman is to have that responsibility, it needs to gear up by starting to recruit more staff and getting in resources to be able to do it. It is a simple decision. He has not ruled it out, but he has not ruled it in. Can we not just do it? It seems obvious. Why set up another body, which would have to start from scratch, when the ombudsman has the skills to do it? Those skills are slightly different in some cases, but why not let it get on with that, and tell it now that it will have that job to do?

I have a couple of other points. The property portal is a really welcome development. We know that when someone is trying to track down a landlord—it is often a local authority, which wants to serve a notice on them—suddenly, the ownership of the property moves, and a different member of the family becomes an owner, or a different company is set up. To know who owns the property, information will have to be given to the property portal, along with all other information about the property. That is a really important step forward, as well as making sure that the portals are digitised so that the information can be kept up to date simply.

I welcome the Minister saying that selective licensing and the property portal are not the same thing, with the property portal to be there for all properties. Selective licensing—it is in the name—will be there for some properties. When there is a review of selective licensing and the relationship with the property portal, will the proposals come back to the House for consideration at some point? I want reassurance on that. Many of us support selective licensing, which we see operating against the worst landlords and the worst properties, and we hope that there will not be a diminution of those powers and responsibilities that would weaken what it can achieve.

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[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. Before I call the next hon. Member speaks, I have now to announce the result of today’s deferred Division on the draft Economic Growth (Regulatory Functions) (Amendment) Order 2024. The Ayes were 395 and the Noes were 50, so the Ayes have it.

[The Division list is published at the end of today’s debates.]

[Anthony Mangnall]

I rise to speak to the amendments that stand in my name, as well as on a number of Government amendments. I feel that I should start by thanking both the Minister and the shadow Minister for their conversations over the last five months on this topic.

I should be clear about my position in leading a number of amendments to the Bill. At no point have we ever sought to stop section 21 coming in, and I hope that I will be able to make that clear in the course of my remarks. What we have sought to do is to stop the ending of fixed-term tenancies—something I believe would have a dramatic impact on the supply of properties, including long-term rental properties. That, to me, is the concern. I believe that it will cause far greater upset in the short and long term in respect of whether people can have the houses that they need.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

In rural areas such as mine where housing is already very expensive, more and more landlords are already deciding that letting their properties out is not worth the candle. They will therefore sell them, and the effect will be that there are fewer and fewer properties to rent. Those that are available will therefore go up and up in price and our youngsters will struggle to get on to the rental ladder.

[Anthony Mangnall]

I thank my hon. Friend for making that point. It is one that I will come on to, in terms of both the impact that the Bill will have on the attractiveness of short-term lets and the bureaucracy and hassle that will arise from this legislation.

From the outset of the Bill’s arrival in Parliament, I have worked to ensure that it strikes the right balance between tenant and landlord—a balance that ensures that the rights of tenants are respected and enshrined in legislation while the rights of landlords, property ownership and contract law are maintained and safeguarded. I believe that a failure to strike that balance would have a disastrous impact on the private rental market in the United Kingdom. Complicating the rental market with onerous requests, bureaucratic measures, additional costs and an inability for people to operate their personal property as they wish would only result in large swathes of the private rented sector throwing up their hands and selling their properties, just as a failure to support tenants would only embolden rogue landlords, diminish standards and increase unfair treatment.

From the start, it has been my mission to find a level playing field that ensures that tenants and landlords can co-operate together in a fair market that has a healthy supply of rental properties, with rights and standards enshrined, costs low and bureaucracy minimal, in a system that respects the rule of law and, perhaps most importantly, has a structure and a court system that is effective and that delivers. All of this has been done because we are in the midst of a supply crisis in the private rented sector, on which we have yet to touch.

On average, 25 prospective tenants inquire about every available rental property, up from eight in 2019, according to Rightmove. Hamptons estimates that between 2016 and the end of 2023, individual landlords sold almost 300,000 more homes than they bought. Last year, the Bank of England warned that demand for rental properties continued to outstrip supply as the number of landlords choosing to exit the market increased. It is therefore vital that responsible landlords have confidence that pragmatic changes are being made to the Bill. Failure to do so would only deepen the crisis.

I have said previously that the failure to have a sensible rental period at the start of a tenancy would likely result in the flourishing of long-term rental properties being used as short-term lets. Given the substantial price difference between short-term lets and long-term lets in constituencies like mine and the constituencies of the hon. Members for North Shropshire (Helen Morgan) and for Westmorland and Lonsdale (Tim Farron), there would be a very real likelihood of people exploiting that loophole.

Landlords incur costs and expenses when entering into a tenancy, and they need the certainty of a minimum period. Many buy-to-let mortgage lenders also require a minimum six-month tenancy agreement when lending to residential landlords. As a result, I tabled amendment 6 with the support of 58 colleagues to ensure that tenants cannot give two months’ notice to leave a property until they have resided in it for four months. I believe that this is in line with the recommendations of the Levelling Up, Housing and Communities Committee. I therefore welcome that the Government have accepted this argument and tabled new clause 15, which mirrors amendment 6. I will therefore not press my amendment.

[Matthew Pennycook]

I wonder whether I can tease out the hon. Gentleman’s reasoning in thinking that the possibility of rental properties being used as short-term lets is so serious. It is an entirely hypothetical problem. Renters who take out a tenancy agreement will have to provide a five-week deposit—they will probably be charged the maximum—and they have to go through a lengthy process to try to get that deposit back. What evidence does he have to suggest that, en masse, tenants will try to game the system in the way he expects?

[Anthony Mangnall]

With the greatest of respect, I am saying that that is one of the reasons why I fear not having a minimum notice period. My constituency has the highest number of second homes and short-term lets of almost anywhere in the country. There is a significant price differential, and a significant amount of hassle is being heaped on landlords by this Bill, which might push them in that direction. This may be one of the foreseeable consequences. I have raised it on Second Reading and in private conversations with the hon. Gentleman.

New clause 2, on rent repayment orders, would enable local housing authorities to impose financial penalties on certain individuals where they believe that a housing offence has been committed by a body corporate. Last year, the Supreme Court delivered a landmark ruling in which it said that, where a rent-to-rent company takes over the running of a property, it cannot pass its legal liabilities on to the property’s landlord. The Government have amended the Bill to reverse that decision, which will mean that landlords can be fined even in cases where a rent-to-rent company or similar has, without the landlord’s knowledge, been asked by a tenant to illegally sub-let a property. According to data from Direct Line, one in 10 renters admits to sub-letting part of the home in which they live, of whom 48% did not disclose it to their landlord and three quarters did not review their existing lease agreement to determine whether sub-letting was permitted. The amendment would deal with the main concern associated with the use of rent-to-rent companies. It would address the problem of landlords and others who willingly hide behind such companies to let properties while avoiding liability for rent repayment orders, without penalising those who are innocent victims of such companies. I welcome and recognise the fact that the Government have seen sense and tabled their own amendment, mirroring my proposed new clause 2, in the form of proposed Government new clause 34. I therefore withdraw proposed new clause 2.

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[Jacob Young]

As I said in my opening speech, we are exploring expediting possession for serious antisocial behaviour claims. I am happy to work with my hon. Friend on how we go about that and ensure that it happens before these reforms are fully implemented.

[Anthony Mangnall]

The Minister will find in this part of my speech we will be agreeing vehemently, although the latter part of my speech might not be so agreeable. I am grateful to him for his intervention; I always welcome the opportunity to work with him.

Likewise, in the case of rent arrears, it cannot be acceptable to have a system that allows rent arrears to continue to build for seven months. The amendment would make good on the Government’s commitment that the justice system is fully prepared for the impact of the end of section 21. Again, I am grateful that the Government have decided to accept the point in principle and introduce proposed Government new clause 30, which mirrors my amendment 9, which was supported by so many colleagues. I therefore withdraw amendment 9.

Proposed new clause 1, the repeal of requirement for selective licensing, under my name, would remove the ability of local housing authorities to designate areas as subject to selective licensing. The Bill provides the Secretary of State with the power to develop a new property portal that all landlords would have to join to demonstrate to prospective tenants that the properties they rent meet all required standards. It would be effectively a national licensing scheme. As selective licensing deals only with management quality and not property standards, the changes in the Bill are likely to do more than selective licensing to improve properties.

Since councils will be able to use the portal to access information on all private rented properties and landlords operating in their area, and in view of plans for a decent homes standard for the sector, local selective licensing schemes will be made redundant. In Wales, the introduction of landlord registration led to the end of almost all selective licensing, so it is unlikely that local authorities would pursue costly and complex schemes in future. I take on board the Minister’s comments in his opening remarks.

Selective licensing is an additional cost to landlords, in addition to the property portal and redress scheme. Landlords should not have to be regulated twice and pay twice for much the same thing. Proposed new clause 1 would scrap selective licensing schemes for private rented housing when the property portal goes live. Having both would not enhance protections for tenants, but merely be a duplication. Scrapping them would remove an unnecessary layer of bureaucracy and cost for landlords. I am grateful for the Minister’s opening remarks. I will take the Government at their word that the Dispatch Box commitment to conduct a review of selective licensing will take place at the earliest opportunity.

My new clause 3 would enable courts to consider hearsay evidence during the course of proceedings for possession on the grounds of antisocial behaviour. It is vital that, when section 21 ends, swift and effective action can be taken against tenants committing antisocial behaviour who cause misery for so many neighbours and fellow tenants. To support this, the Government have changed the wording of the discretionary ground to repossess a property due to tenant antisocial behaviour—ground 14. They clarify that any behaviour “capable” of causing “nuisance or annoyance” can lead to eviction. Previously, it was behaviour “likely” to cause a problem.

However, that is not the true problem. The current problem, which is not dealt with by the Bill, is that the main evidence of nuisance is provided by neighbours, as they are closest to the person involved. The changes to the definition of nuisance do not alter the fact that evidence of behaviour needs to be provided, and that will still come from neighbours. However, in so many instances, neighbours are reluctant to attend court and give evidence, in part because the slow speed of the court system means that they will be forced to live near the person that they have reported or helped to evict for several months afterwards.

A better solution would be to allow landlords to use evidence of problematic behaviour that is provided by neighbours complaining by text or email to the landlord or the letting agency. This evidence is not currently admissible, and the courts cannot give sufficient weight to it when deciding whether the tenant is committing antisocial behaviour. This amendment would allow for such evidence to be used by the courts.

In the negotiations and discussions that we had in the run-up to this debate, the Minister’s Department and his civil service team were extremely helpful in highlighting Civil Procedure Rule part 33.3 in relation to

“circumstances in which notice of intention to rely on hearsay evidence is not required.”

Again, the comments made by the Minister are welcome, although I hope his Department will follow this up with the Ministry of Justice. I therefore withdraw new clause 3.

Amendment 5 covers houses of multiple occupancy relating specifically to students. This would mean that the ground for possession for student properties could also be used for properties occupied by one or two students, which would not otherwise have been considered as HMOs.

Ending fixed-term tenancies will be problematic for the student housing market—it would be problematic for the whole Bill—which operates on a yearly cycle, from one academic year to another. Although the Government have recognised that by allowing fixed-term agreements to continue in purpose-built student accommodation, it will not apply, as I understand it, to traditional off-street private-rented housing, often rented to those in their second or third year of studies. This is a concern shared by many in the industry and, indeed, by the Levelling Up, Housing and Communities Committee, which has noted:

“Currently, the proposal is to include this part of the PRS in the tenancy reform, but we conclude that abolishing fixed-term contracts could make lettings to students considerably less attractive to private landlords, as the student market mirrors the academic year and benefits greatly from 12-month fixed tenancies.”

I hope that I have quoted the Select Committee report accurately.

A Government amendment to the Bill made at Committee stage established a new ground for possession—ground 4A—to protect the student housing market. This is to be welcomed. It will ensure that landlords can guarantee that most student properties will be available for each academic year, but it will not protect all student housing. The new ground will cover only houses of multiple occupation; it will not apply to those properties occupied by one or two students. This oversight would be rectified by my proposed amendment. Again, I thank the Government for recognising this and introducing their own amendments 226 and 228, which have addressed that problem.

As I come to my concluding remarks—at last—I wish to make some comment on amendment 10, which has not been selected.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I have been listening carefully to what the hon. Gentleman has been saying. He has a range of amendments and it is perfectly in order for him to speak to those, but it is not in order for him to speak to amendment 10, because it has not been selected. Not only has it not been selected for a Division, but it has not been selected for debate. There might be a general point to which he could make reference, but he may not speak to amendment 10.

[Anthony Mangnall]

I thank you, Madam Deputy Speaker, for being so generous in your explanation on that.

The problem that I see with this Bill is that, while the intent to remove section 21 is a good and necessary one—yes, it has taken time to get to this point—it is not one that those who have signed my amendment have ever objected to. The principle that explains why the amendments have been so widely supported is that there must be some leeway around ensuring that fixed-term tenancies can remain. Indeed, they still remain in certain instances within the student market.

[Mr Marcus Fysh (Yeovil) (Con)]

My hon. Friend is making a powerful speech. Does he agree that it is in renters’ interests, more than anything else, to be able to agree tenancies longer than six months, in order to have security of tenure? If they have a young family, they will not want grounds such as sale to get in the way.

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[Anthony Mangnall]

My hon. Friend is right to make that point. In essence, the Bill forbids a contract being agreed with a date on which the tenant would have to leave the property. The noble Lord Hannan of Kingsclere pointed out in February in the other place that

“language matters in politics and tendentious phraseology has consequences. How have we reached the point where the expiry of a contract, freely entered into by two parties, at the end of its term is now widely referred to as an eviction, let alone a no-fault eviction?”—[Official Report, House of Lords, 20 February 2024; Vol. 836, c. 519.]

To be clear, the Bill will make it illegal to sign a fixed-term tenancy. The lack of clarity when describing the end of a contract has meant that we are now terming simple cessations of contracts as no-fault evictions. Who is at fault when a previously agreed contract comes to an end at a future date? No one. I believe that there are ways to retain fixed-term tenancies and scrap section 21.

[Caroline Lucas]

Will the hon. Gentleman concede that, although in principle it is perfectly possible to imagine a scenario where the tenant and landlord mutually agree to a set length of tenancy, the reality is that, because so many tenants are rushing for so few properties, the amount of free will that the tenant has in signing up to that contract is not very great? The idea of its being mutually agreeable is rather more suspect than the hon. Gentleman suggests.

[Anthony Mangnall]

I come at it from a different angle: we are heaping so many rules and regulations on people, and making things so difficult, they are leaving the market as a result. This was one of the pioneering policies of Thatcher, bringing in the idea of the free market in property, and ensuring that millions of people across the country could realise the social value of having a buy-to-let property on a long-term basis. The hon. Lady will not agree with me; I do not think that we agree on very much. That is okay; it is good to be able to debate the issue, especially in this Chamber.

We must be honest about this: removing fixed-term tenancies is essentially the state telling individuals what they can and cannot do with their own private properties. It is conceivable to remove section 21 while retaining fixed-term tenancies. I have said that the Conservatives have long prided ourselves on being the party of free markets, and we should keep that in mind when we vote later. We are sending completely the wrong message, with dire consequences for future levels of housing supply. We are making an enormous mistake, which will reduce long-term lets in favour of short-term lets and result in many properties being taken off the rental market. I would hate to be back here, having to repeat the figures that I gave at the start of my remarks—in 2019, there were eight people for every one property; now there are 25—and say that the number is going up and up. I fear that, as a consequence of the Bill, that will happen.

[Mr Betts]

The hon. Gentleman seems to be in favour of abolishing section 21, but then giving landlords the right to bring in fixed-term tenancies, which end with a section 21 notice. If the landlord chose, therefore, section 21 would not be abolished, would it? It would be a figment of our imagination here, because in practice it would never be delivered with his proposal.

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[Anthony Mangnall]

The hon. Gentleman is right to make that point, and he has far greater expertise in this area than I, but I am saying that we can retain fixed-term tenancies, scrap section 21 and amend other parts of the Bill. There is breach of contract. Indeed, we could make notice periods longer. I know that the Department discussed that idea when this was mooted after the 2019 election: we could scrap section 21 but increase the notice period for an eviction. Those are ways we could do it, but to throw the baby out with the bathwater and to become so restrictive on someone’s private property is a problem. People go into the buy-to-let market to let their property out, but unfortunately I think this Bill will have the opposite impact, pushing people out of the market who will no longer want to deal with the hassle.

[Simon Jupp (East Devon) (Con)]

My hon. Friend is making a fantastic speech and I commend him for all of his efforts on the Bill. One of the challenges is that sometimes our thinking about this issue is constrained to, for example, a metropolitan area. He and I both represent rural constituencies that are really affected by short-term holiday lets, and the unintended consequence of this Bill is that landlords will be pushed towards using those, because the rules and regulations will become so tight and constraining on long-term landlords. Does he agree?

[Anthony Mangnall]

My hon. Friend is absolutely right to raise that point, and it comes back to the question of trying to incentivise long-term lets over short- term lets. In rural constituencies in the south-west, we face a rising tide of short-term lets. However, we are not legislating on the basis of our own respective constituencies, but on a nationwide approach. We should look very carefully at other countries and other examples of where things have gone so badly wrong through, sometimes, the simplest tinkering of housing legislation: Scotland on rent controls might be one, and Finland or Berlin might be another. They are examples of things having been got horribly wrong.

[Steve Brine (Winchester) (Con)]

I have been listening very carefully to an excellent contribution, as always, from my hon. Friend—they are lucky to have him in Totnes. Further to the intervention from our hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown), is my hon. Friend saying that the irony of this debate is that we are effectively legislating to no-fault evict tenants because we are pushing landlords out of the market through this legislation? Can he back that up with any more evidence that he has heard in his deliberations while creating this excellent speech?

[Anthony Mangnall]

My hon. Friend is absolutely right. I will use my constituency as an example: I have seen a significant decline in the number of long-term lets over the last four-year period. They are going straight into short-term lets at a far greater cost, making renting totally unaffordable and leaving us to come up with innovative ways to supply the correct amount of rental properties for people who live and work in south Devon. I think that is also reflected in east Devon, in Yeovil in Somerset and, I am sure, in the Cotswolds.

I will finish by saying that I am grateful for the work Parliament has done on this. At no time do I think the Government have dragged their feet; at no time do I think they have tried to block me. By virtue of tabling quite so many amendments, I am probably responsible for some of that hold-up, and for that I apologise. Ultimately, however, it comes down to a belief in whether we are overreaching. I feel that this Bill is overreaching. There are ways we can help to ensure that the rights of tenants and landlords are enshrined and balanced, but removing fixed-term tenancies is a step too far for me—it will be significantly negative for the future rental market, and I will unfortunately have to vote against Third Reading.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

The Renters (Reform) Bill had the potential to bring much-needed security and safety to renters, yet amendments to water it down, brought forward in Committee and even on Report, are a backward step that will significantly undermine the Bill’s intent. As an MP with one of the largest student populations in the country, I am all too aware that students are experiencing a housing crisis on top of a cost of living crisis. We have seen landlords asking students renters for guarantors, as well as for deposits of up to 100% of their annual rent, the criterion for which is that the guarantor must own a UK property.

That requirement has an impact on the accessibility to working-class students of private rented sector accommodation at their university. It also has an impact on the ability of care leavers and those estranged from their families to access higher education altogether, as well as that of international students who do not have family members with property in the UK. To mitigate that, I have tabled new clause 41, which seeks to end one of the most illogical parts of the rental process: guarantor schemes. The expectation that, despite entering into a legal contract that outlines the responsibility of the landlord and the tenant, a nominated individual takes responsibility for fulfilling the contract seems to undermine the purpose of the contract itself. My new clause seeks to tackle financial pressure on students, supporting the amendment tabled by my hon. Friend the Member for Sheffield Central (Paul Blomfield) to stop landlords from signing up tenants months before an academic year, which creates an arms race for student lets.

We must also consider those who have come through the care system or have become estranged from their parents, for whom living at home has never been an option. If students do not know a guarantor who owns a house in the UK, they may be stuck paying extra to a private company, paying six months’ rent or more up front, or being unable to rent at all. Guarantors are not expected for most people of the same age who are not students, so why is there this discrepancy for students?

An international postgraduate student at Leeds University told me:

“My only viable option was using the Guarantor service ‘Housing Hand’ which costs me an additional 50 pounds a month on top of rent and bills. I am a PhD student receiving the UKRI minimum stipend which is paid monthly.

The cost of living for food and rent alone is already difficult on this stipend and during final week before the stipend is paid each month I often struggle to maintain a healthy and balanced diet due to financial strain.

This is not only demoralising but effects my academic progress on a physical level as I am often hungry and unable to afford fresh fruit and vegetables which are a staple of my diet. It may not sound like much, but not having to pay for this guarantor service could make a considerable difference to my overall wellbeing on a monthly basis as this money could instead be used on fresh food.”

Research conducted by students from the Centre for Homelessness Impact found that just 36% of universities provide help on rent guarantors, that even fewer provide a rent guarantor service for students, and that, as universities themselves face financial issues, such a service will become more unlikely. Renting as a student is already an uphill struggle. We know, for example, that student accommodation prices have increased by 61% since 2012, and information from the National Union of Students UK shows us that two in five students have considered dropping out because of the cost of rent and bills. When we are trying to encourage people to attend our world-leading institutions, which strengthen the skills potential of our country’s workforce, why do we put up so many barriers?

Our universities are the UK’s strongest soft power. International students in particular are left with nothing but bad choices—they must either find a UK guarantor or pay six months’ rent or more up front to their landlord. As one student recently relayed to the all-party parliamentary group on students:

“International students often face more challenges than home students. We have heard stories of students paying months of rent upfront, only to find out they have been scammed and the place they thought they'd secured doesn’t even exist. We had one case where international students paid a whole year’s rent in advance, only to find out their landlord went bankrupt. While they eventually got their money back, the stress and uncertainty they went through was unbearable.”

The Bill was a welcome opportunity to rectify so many of the scandals in the private rented sector, yet there has clearly been a continued and concerted campaign to force the Government to create an unprecedented two-tier rental market in which students would be at the mercy of section 21 evictions that other tenants would be protected from.

Draft East Midlands Combined County Authority Regulations 2024

Anthony Mangnall Excerpts

Wednesday 7th February 2024 General Committees

[Jacob Young]

I am grateful to the hon. Gentleman for his point. He allows me to draw on the example of Devon and Torbay, in the same area as my hon. Friend the Member for Totnes represents. Just two weeks ago, I signed a level 2 devolution deal there, which does not include a mayor. I grant the hon. Member for Brighton, Kemptown that that deal does not include all the same functions as the one under consideration today, but it devolves power over the adult education budget, creates a new transport authority and puts the future of economic growth in Devon and Torbay in the hands of local leaders. We are keen to promote that throughout the country.

If the hon. Gentleman has examples of where he wants to see devolution in his area, my door is open. I am always happy to discuss the potential for devolution in Sussex and elsewhere.

[Anthony Mangnall (Totnes) (Con)]

The Minister mentioned Torbay, south Devon, Devon County Council and the new devolution settlement. I welcome what he says and the bespoke agreement we have. I will also say that any Members who want to come down and see how it is done are welcome—even the hon. Member for Brighton, Kemptown. Does the Minister agree?

Levelling Up

Anthony Mangnall Excerpts

Monday 20th November 2023 Commons Chamber

[Jacob Young]

The hon. Gentleman misjudged the mood of the House. He talks about local government finances. Last year, we gave local authorities an uplift of more than £5 billion. He asks whether any projects were axed by the methodology that we used—no, they were not. As I say, we set out the methodology online, and I will ensure that there is a copy in the House of Commons Library.

The hon. Gentleman asked what conversations there were with local authorities ahead of any announcement. We have area teams on the ground in all local authority areas, which confirmed with councils that projects were still a priority. They also confirmed with councils whether projects could still be delivered by the deadline. No projects were identified through those conversations that did not qualify this time around.

Further to that, the hon. Gentleman asked about funding simplification and why we are embarking on that. He mentioned the NAO’s concerns. Some of its concerns are legitimate, but we looked at its report and many of the figures dated from March. We have spent £1.5 billion on local places since March. We announced the funding simplification plan in July, in response to the commitment we made in the levelling-up White Paper to simplify the funding landscape.

Finally, the hon. Gentleman described £13 billion of levelling-up funding as “crumbs”. That says it all about the Labour party. It does not recognise the value of anything. We are investing £13 billion in local priorities, and Labour describes that as crumbs. I leave it to the House to determine what it thinks of that.

[Anthony Mangnall (Totnes) (Con)]

I am well accustomed in this place to rejection, and after rounds 1 and 2 of the levelling-up fund, it was disappointing not to see Brixham and Paignton recognised. However, I am delighted today to see that Brixham harbour and the EPIC centre in Torbay business park have been recognised with £20 million of support, which will make a huge difference. Can the Minister reassure me that that money will come in good time and good order, so that we have the ability to deliver as quickly as possible in our coastal communities?

[Jacob Young]

Absolutely. We are delighted to be funding high-tech fish and chips in Brixham. This announcement comes on top of additional funding pots that we have been able to give Torbay, including the levelling-up partnership, on which I am working well with my hon. Friends the Members for Totnes (Anthony Mangnall) and for Torbay (Kevin Foster). The funding will come in due course and we will work with local authorities to ensure that they can still deliver the projects on time and to plan.

Renters (Reform) Bill

Anthony Mangnall Excerpts

2nd reading
Monday 23rd October 2023 Commons Chamber

[Anthony Mangnall (Totnes) (Con)]

Listening to this debate, I am surprised that we are being accused of dither and delay when 13 years of Labour government never produced a Bill such as this. However, that is for Labour Members to discuss and to wrestle with on their own terms.

I welcome the Bill and support its sentiment, but, as with all pieces of legislation that pass through this place, the devil is in the detail. The Minister and the Secretary of State have a trifecta on their hands. They must reassure Members in this place and in the House of Lords; reassure tenants; and reassure landlords, because, at the moment, I am not entirely sure that we are there. Just as not all tenants are bad tenants, not all landlords are bad landlords. We must make sure that what we provide in the Bill today, in Committee and on Third Reading will reassure both tenants and landlords and take them with us. As many Members have said, it is a balancing act of ensuring the rights of property ownership along with the rights of good, firm tenancies.

I have three areas on which to focus my remarks. The first is the removal of fixed terms—following the brilliant speech of my hon. Friend the Member for Cheadle (Mary Robinson), I shall also mention the unforeseen consequences, which she talked about. Perhaps I can give an example. My constituency has one of the largest second home and Airbnb markets in the country. Under the Government’s proposal that tenants will be able to hand back a tenancy with a minimum of two months’ notice, someone could come down, pretend that they are going to rent a house on the long-term rental market, go there for June, July and August, and then hand back the tenancy. With this clause, we would completely obliterate the long-term rental market because people would take advantage of it as a short-term letting market and then hand the property back.

The disparity in prices between the short-term let market and the long-term let market is unbelievably significant in south Devon. I hope that the Minister can reassure me on that point, because that is exactly what people will do. They will rent a house on the pretence that they will stay in it for a significant period, they will be there for the summer, and then they will give it back. That is what the clause allows. We have to ensure that the unforeseen consequences are addressed.

Unless the Minister can give me some reassurance, I worry deeply about what the long-term rental market will look like. At the moment, across south Devon only 70 homes are available for people to rent. We do not demonise landlords without risk. We need to incentivise people to put their houses into the long-term rental market so that they can provide that social value. That is exactly why the Country Land and Business Association has said that it thinks that the rural private housing sector is set to shrink, with 44% of landlords either selling their property or changing its usage class.

My second point is about court reform. I am distinctly uneasy about voting for a Bill that does not come with enforcement and arbitration measures. We have been here before. It is all very well to give a brilliant speech in this place, and clip it and put it on YouTube or Instagram, but if we do not address the legal mechanisms that are needed to enforce the measures, we do our constituents a disservice. It is part of the process in this place, and it worries me that the Government are suggesting that we vote blindly on a piece of legislation that does not have that enforcement mechanism in it.

As I have said, the devil is in the detail, so perhaps the Minister could tell us what the timeline will be for the full creation of the court system or arbitration system. How quickly will we see judgments come along? How will we look to expand the wording on antisocial behaviour, and what will the actual terminology be? When considering a Bill a few years ago, we had a very vague term for the acceptable level of noise. The people who had to enforce that were the police.

If we do not have specifics in our laws they end up being interpreted, sometimes for the better but more often for the worse. Again, I ask the Government to be clear about their laws and language, so that we can ensure that the Bill is drafted in the right way to help both tenants and landlords. I do not feel that this is particularly party political, or that many people from across the House would disagree with those points; it is about having good law and good legislation, and we are all part of that system.

My third point is about the social value of landlords. Both the shadow Minister and the Secretary of State made exactly the same point: they expressed the value of landlords in the housing mix. We have to remember that, because without landlords out there providing houses, our housing market would be a lot worse off. We therefore also have to ensure that under the rights of property ownership, which this place has protected over the years in many different forms, we are clear about the grounds for eviction. I do not think that it is controversial to ask for evictions on the basis of a breach of contract, persistent late payment or damage to property. We have to be clear about those things.

No Member who has spoken in the debate, which has been broadly co-operative, wants people to be homeless or to live in bad housing, but we have to be absolutely clear about what we are asking of tenants and landlords. We have to provide reassurance and ensure that we are incentivising the long-term rental market. By the way, we could also look at reinstituting section 24 mortgage rate relief, but that may be a debate for another time. We have to ensure that we are not pushing houses back into short-term lets, that we are creating a transparent legal system, and that we are looking after the value of tenants and landlords in equal measure. As I said at the beginning, this framework is welcome, but unfortunately there is more work to be done.

Levelling Up: South-west

Anthony Mangnall Excerpts

Tuesday 4th July 2023 Westminster Hall

[Mr Liddell-Grainger]

No. The Lib Dems said that they were going to scrap bigger charges for car parks. Guess what? They are putting them up. The new councillors could have reneged on their annual increase in allowances —now up to £5,600 a year. They voted to abstain, dare I say it? I do not know how you vote to abstain, but never mind. So they get paid anyway. The new council leader, whatever his name is, also picks up £16,800 for his extra responsibility of being a part-time leader—and you wonder why these bids fail. That makes £22,000 in total. “Ching”, as the cash register goes. To think that they promised to be totally transparent. The truth is that these people are not transparent at all; they are totally invisible. Levelling up demands visibility—that is something that I have learned. Very vocal, completely focused local authorities need to argue the case. It has been proved that that is how to get results.

What price for Mid Devon’s part-timers? A vital new high school is needed in Tiverton. I am grateful for the Minister’s incredible help on that. Just before Christmas last year, the Government said, “Yes, the money is ready and waiting.” It is still waiting. We know the issue, and I thank the Government for their help. Seven months later, no progress has been made. Did anybody ask? Well, I have asked, and we are getting to the bottom of it. That is what this is about. Does the part-time leader of the council, Mr Thingummybob, pick up the blower and complain? Who knows what has become of the other invisible people, including the one who was suddenly catapulted, dare I say it, closer to here, last seen with clipboards and pencils preparing a strategy.

Levelling up means many things, but usually it means the unequal treatment of rural parts of the south-west. That is most important: we are rural areas.

[Anthony Mangnall (Totnes) (Con)]

rose—

[Mr Liddell-Grainger]

I give way with great pleasure to my hon. Friend.

[Anthony Mangnall]

I thank my hon. Friend for his excellent speech and for raising this topic. He is talking about things within our rural constituencies, but may I make a point about coastal communities? Within my constituency, I have Brixham harbour, which we put in a bid for. The two bids that we put in under the Liberal Democrat administration in Torbay failed; thankfully, it is now a Conservative administration. Where there are successful stories, such as Brixham fish market, we should not rule it out because it is making money; we should recognise the potential of what it could do for the whole county, were we to invest in it and give it the support that it needs.

[Mr Liddell-Grainger]

A superb synopsis, and I congratulate my hon. Friend on the work that he does. Leave the Lib Dems in charge and, as I said, the intelligence goes. I am sorry that the bid was lost, but we will be back. The Minister is listening, and I know that we will get the bid, because in rural areas such as that of my hon. Friend the Member for Totnes we have to fight our corner. That is especially important in places such as Cornwall. We are joined by my Whip, the hon. Member for North Cornwall (Scott Mann), to ensure that I behave.

--- Later in debate ---

[Mr Liddell-Grainger]

No. Anyway, I received a jolly little email from the PR chief, which I would like to share. I will read, if I may, the first paragraph of the email I got yesterday, addressed to “Dear Mr Liddell-Grainger”, which was spelled correctly.

“I wanted to get in touch in advance of your levelling-up debate. May I congratulate you on securing this important debate? If you are planning to attend this debate on Tuesday I would be grateful if you or your team could confirm this.”

That is a water company supplying millions of people with water, yet is not sure I am turning up for my own debate. What hope have the rivers and fish of Somerset and Devon got, with people like that? If I may, I would also like to bring in potholes, the bane of all our lives.

[Anthony Mangnall]

rose—

[Mr Liddell-Grainger]

I will give way with pleasure.

[Anthony Mangnall]

I apologise for having two bites of the cherry, but since my hon. Friend has raised South West Water, does he not agree with me that, if it is failing to clean up our waterways or expand our storm overflows, and is not following the laws that we have passed in this place, namely around dividend payments, we have to ask the question, what is the point of this place, if the company is not going to follow those laws? We have to ask it not to take Parliament into contempt when it comes to enacting the stringent laws that we have passed to ensure that it cleans up our waterways.

[Mr Liddell-Grainger]

I am very grateful for that extremely serious intervention. My hon. Friend is quite right; it is beyond the pale. South West Water is a disgrace at every level. We are rightly trying to hold its feet to the fire. It has to be brought to account. If necessary, we have to get representatives here to ensure they understand just what a shambles and disgrace the company is. It is damaging the environment, damaging confidence and damaging people’s water. It is failing at every level. My hon. Friend gave an extremely good example of how it is holding this place, us, and the elected representatives of the people of the United Kingdom in contempt. That is wrong.

But back to potholes! Potholes are the bane of all our lives. Minister, I know they do not come under the remit of levelling up, but would it not be sensible if they did? Somerset has more roads than Belgium, and who knows where Belgium is? Weak beer and people in strange hats. Minister, we need to look at giving money to pothole improvement, in Somerset and Devon, as both counties desperately need it, which is important.

Before I give up, I would like to thank one person who is a star in my constituency, Emma Thomasson. Her father-in-law was a colleague of ours, Bob Walter, who was in this place for many years. She has been working flat out to put a bid together on the west Somerset side, which could easily incorporate Devon, because it is about learning and skills, rural access, mobility and giving young people opportunities in our areas. We know it is not easy. A-level provision is not good, local buses are not good, trains—well, we will gloss over that. People like her, who are dedicated to trying to get us forward are doing really well.

I will conclude by saying this. Levelling up is a deadly serious business; I know because I have done a lot of bids. I believe that the Government are treating it seriously, having talked to many Ministers, but they cannot do it alone. We have got to work together to achieve this. It needs practical local people producing workable plans that will benefit the greatest number of residents, and provide real value for money across the whole county and country. Levelling up is something that we all know works. We know it can work in rural areas. My hon. Friends the Members for Totnes, for East Devon and for North Cornwall have made the point time and again: give us the money, give us the tools, and we will deliver the job.

--- Later in debate ---

[Dehenna Davison]

I am grateful to the hon. Member for mentioning the Cullompton relief road, but I am afraid he has been pipped to the post, as my hon. Friend the Member for East Devon (Simon Jupp) has raised the issue with me on multiple occasions, to the point that it is probably one of my favourite relief roads. I hear about it weekly.

There will be a third round of the levelling-up fund, which is an incredibly exciting opportunity for local areas. The Government are easing the bureaucracy and burden of bidding rounds by simplifying the funding landscape, and we are introducing further funds, such as the shared prosperity fund, to provide further input for local people and hand powers and tools back to local areas so that they can deliver on their local priorities.

[Anthony Mangnall]

Where bids fail, what consideration has been given to loaning the money to organisations and councils, on the basis that the Government will reclaim it in the future, to allow levelling up not just for Government organisations but for the private sector?

[Dehenna Davison]

My hon. Friend raises a really interesting point. As I said, we have been exploring alternative funding streams, such as the UK shared prosperity fund, but the most exciting opportunity we have is proper devolution. We are rolling out devolution deals around the country so that local powers and local cash are in the hands of local people. To me, that is the better and right approach to enable long-term strategic thinking locally, but I certainly heard my hon. Friend’s point loud and clear, and I will be happy to discuss it with him further.

Oral Answers to Questions

Anthony Mangnall Excerpts

Monday 5th June 2023 Commons Chamber

[Anthony Mangnall (Totnes) (Con)]

7. Whether his Department is taking steps to change the balance between short and long-term rentals.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

We are consulting on a registration scheme for short-term lets and on the introduction of a short-term let use class and associated permitted development rights. Those changes would give councils more control over the number of new short-term lets and help them to meet local housing needs.

[Anthony Mangnall]

I appreciate the Minister’s response, but where we have non-unitary councils it turns out that the Government’s measure of 200% council tax will see 92% go to counties and only 8% to districts. Will that be looked at? In addition, will we also examine how we can incentivise long-term landlords? We demonise landlords at our peril and we need to make sure that if we are going to repeal section 21, we do it in a way whereby we can offer them justice on being able to remove tenants where they need to do so.

[Rachel Maclean]

My hon. Friend is right to highlight the Government’s progress on all the work we are doing to be fair, not only to landlords, but to tenants, who have suffered some appalling experiences in many cases. That is why we are bringing forward the legislation, which will be a balanced package, but he is right to highlight the issue of council taxes and I know he is having discussions with the Treasury on that matter. We are determined to make sure that local authorities have the right balance between having those holiday and tourist areas, and homes for local people.

Leasehold Reform

Anthony Mangnall Excerpts

Tuesday 23rd May 2023 Commons Chamber

[Lee Rowley]

My right hon. Friend highlights the importance of reform in this area and the cross-party nature of the support for it. I would not read anything into my comments other than that we are committing to reform, we have said we will bring it forward and we will bring it forward. It will happen in the remainder of this Parliament.

Part of that reform will involve reforming unreasonable and excessive service charges. Many landlords and managing agents already demonstrate good practice and provide significant and relevant information to leaseholders, but too many are failing to meet that standard and failing to provide sufficient information or sufficient clarity. We recognise that existing statutory requirements do not go far enough to enable leaseholders to identify and challenge unfair costs. We will therefore act to improve this through better communication around these charges, and a clearer route to challenge or seek redress if things go wrong. That will ensure that leaseholders better understand what they are paying for and can more effectively challenge their landlord if fees are unreasonable, and make it harder for landlords to hide unreasonable or unfair charges.

[Anthony Mangnall (Totnes) (Con)]

I hope that my hon. Friend will forgive me for asking this question in this debate, but I wonder whether he might include in the legislation reforms relating to park homes. Many of the issues that he has mentioned are also faced by park homes across the country, including unfair prices and utility prices at very high levels, all of which are totally unacceptable. It is like the wild west for those people.

[Lee Rowley]

My hon. Friend makes an important point. I have hundreds of park homes in my constituency, and I know how important it has been for residents to see progress on those issues over the past decade. I was pleased, as I know my hon. Friend will have been, to see the changes brought forward in the Bill introduced by my hon. Friend the Member for Christchurch (Sir Christopher Chope) to reform pitch fees from RPI to CPI. That has been welcomed across the park homes sector and I know that the Government will continue to look at what reforms are possible for the sector.

Returning to the specific questions that have been put forward, we are committed to ensuring that when leaseholders challenge their landlord, they are not subject to unjustified legal costs and that they can claim their own legal costs from their landlord. Currently, if permitted by the lease, leaseholders may be liable to pay the legal costs of their landlord regardless of the outcome of the dispute, even if they win their case. The circumstances in which a leaseholder can claim their own legal costs from the landlord are limited. This can lead to leaseholders facing bills that are higher than the charges being challenged in the first place, which can deter leaseholders from taking their concerns to a tribunal. We will act on this and ensure that leaseholders are genuinely free to seek justice and to benefit when their case is proved.

Crucially, we also want to see more leaseholders benefiting from freehold ownership, as set out in the levelling up White Paper, and we recognise that reinvigorating commonhold has a significant part to play in this as a genuine alternative to leaseholds for flats. Some of the failings of the existing leasehold system have been all too evident in the past when seeking to ensure that those responsible for constructing dangerous buildings should be the first to pay for putting them right.

The Building Safety Act 2022, in addition to the existing enforcement powers available through the Regulatory Reform (Fire Safety) Order 2005 and the Housing Act 2004, empowers leaseholders and regulators to compel building owners and landlords to fix—and to pay to fix—their unsafe buildings through remediation orders and remediation contribution orders. The effect of the Building Safety Act is intended to be that building owners and landlords who build defective buildings, or who are associated with those responsible, pay for the remedying of all historical safety defects, both cladding and non-cladding. Landlords who are not associated with developers but can afford to pay are also unable to pass such costs on to qualifying leaseholders.

Similarly, on insurance costs, the Financial Conduct Authority’s latest report into broker insurance revealed that, on average, the premiums paid by leaseholders living in buildings with combustible cladding had tripled. That is unacceptable. Commissions on insurance policies also drive up prices, and in 70% of cases commissions are shared with property managing agents and freeholders by insurance brokers. This is an unfair burden that leaseholders should be relieved of, which is why we have committed to replacing commission pass-throughs from insurance brokers to managing agents, landlords or freeholders with more transparent fees and fair insurance handling costs. We have been clear that this unreasonable practice must end as a matter of urgency, and I regularly meet the relevant trade associations to make progress on this matter.

We have also made progress with a number of banks in recent months on ensuring that the market in leasehold properties affected by cladding starts to become more voluminous, by separating the building safety issues from people’s ability to live their lives.

Whether we are talking about safety or the security and freedom that people rightly expect when they buy a home, this Government are on the side of leaseholders. We are protecting and empowering them to challenge unreasonable charges, making it easier and cheaper for them to extend their lease or buy their freehold, and boosting commonhold as a flexible alternative to take the housing market into the 21st century. Millions will benefit from these reforms, not just in the thousands of pounds saved but in knowing that the homes they have worked so hard to secure are truly their own.

Short-term Holiday Lets: Planning

Anthony Mangnall Excerpts

Tuesday 23rd May 2023 Westminster Hall

[Anthony Mangnall (Totnes) (Con)]

It is a pleasure to speak in this debate, and to support my neighbour, my hon. Friend the Member for Torbay (Kevin Foster). Across south Devon, we have been dealing with this issue for a long time. The debate comes down to a point of balance. If we are implementing measures to try to improve housing stock, then we are doing the wrong thing. Over the last three years, we have successfully worked together across the House to try to change the law around short-term lets. We changed the business rate loophole, so that there is an actual number of days that houses have to be let for. We changed council tax rates to 200% on empty and second homes. We are looking at how neighbourhood plans can take into account the amount of second homes when new houses are built. There is also the consultation, which has been mentioned time and again. A large body of legislation has not just being promised, but has already been delivered, and there is legislation currently in the House of Lords. It is not correct to say that nothing has been done, and that two years on, nothing has changed. A great deal has changed. The question, however, is: what is the intent? What are we trying to do? If we are asking for more houses, then we need to build more houses, and changing the rules around short-term lets will not deliver them. We must have that in mind in this debate.

The hon. Member for Westmorland and Lonsdale (Tim Farron) correctly mentioned how important tourism is to his local economy; it is the same across Devon and Cornwall, as he well knows, and of course across Strangford, too. In my area, 3% of the economy is based around tourism and hospitality, and we all understand the need to attract people to our area, and to find the employees to work in the visitor economy.

In Devon, there are 13,363 second homes. That is up by 11% from last year. In my constituency of Totnes in south Devon, there are 3,454 Airbnb lets. Madam Chair, if you were to take out your phone right now and look at Rightmove for a long-term rental property in my area, you would find only 34 properties, and they are unaffordable. The challenge for my constituency is in both being a welcoming area for second homes, and being a place where people can live and work. Day in, day out, my inbox is filled with correspondence from teachers, doctors, lawyers, nurses and others who want to live and work in the area, but who struggle to get into the housing market, either by buying or renting. We must consider measures to encourage more people to offer up housing for the long-term rental market.

It is interesting that we are having a conversation around section 21, because there is a debate this afternoon on that very subject and what we do about leaseholder reforms. We must have measures to encourage people to make their properties available for long-term renting, because across our constituencies—I would imagine that we are all in tourist destinations—not many of the houses put up for rent are in that long-term market. How we achieve that must be at the forefront of our mind when legislation is next brought forward.

We should start by thinking about unintended consequences. We are sent to this place to think about how we can improve situations. I suspect that that is exactly what George Osborne thought he was doing in 2015 when he changed the tax relief on mortgage interest payments. However, that change has completely disincentivised the long-term rental market and completely favours the short-term rental market. If people can receive three, four, or in some cases five times more rent from Airbnb than from the long-term rental market, what is the point of their going into the long-term rental market?

We have to think about what we are doing, today and in forthcoming legislation. I give the Minister due warning that a great many of us will want to shape that legislation, so that we can find a balance. We need to support the rights of tenants and landlords, and encourage a fair system that allows both sides proper representation in the law. That matters, because if we get this wrong, it will be incredibly difficult for us to support either the short-term letting market, which is so important to our visitor economy, or the long-term market, which is needed if we are to encourage digital nomads or others to live and work in different parts of the country.

There has been a lot of conversation around farming and diversification. As we are no longer in the common agricultural policy, our farmers have been asked, through the environmental land management scheme, to consider how they can diversify. However, time and again, they are hampered from changing the use of their properties. We must make it easier for them to do so. It is no good taking away their subsidies, and then changing the system and saying, “It is this difficult to apply for planning permission.” Time and again, farmers and rural businesses face huge costs from organisations such as Natural England, with the result that they cannot diversify.

If we want to improve housing stock; encourage landlords to let long-term rental properties; encourage primary residency building, as is envisaged in the neighbourhood plans; and encourage an ability to diversify in rural landscapes, we must act. If we get that right, we can achieve the perfect balance between short-term lets, long-term lets and affordable properties, because in the end, the issue all boils down to supply.

--- Later in debate ---

[Joanna Cherry (Edinburgh South West) (SNP)]

It is a pleasure to serve under your chairpersonship, Dame Caroline. I commend the hon. Member for Torbay (Kevin Foster) for securing this debate.

As a Member of Parliament representing an Edinburgh constituency, I am well aware of the impact that the explosion in short-term let properties has on local housing markets in tourist hotspots. The debate was prompted at least in part by the UK Government’s recently opened consultation on a registration scheme for short-term rental properties in England. I am pleased to say that the Scottish Government have been quicker to act on these issues. They have implemented legislation, and our scheme is now up and running in Scotland. That is but one example of a policy area where, despite limited powers of devolution, tangible measures to tackle the cost of living crisis and the cost of housing are being implemented in Scotland.

[Anthony Mangnall]

Will the hon. and learned Lady give way?

[Joanna Cherry]

I want to develop my point. Licensing and planning rules have already been introduced by the Scottish Government for the city of Edinburgh, and owners of short-term lets have until October to comply with the changes. Edinburgh became the first let control area in July 2022, and a smaller control area is being planned in the highlands. The First Minister also recently proposed allowing councils to double the council tax paid on empty and second homes.

The supply of housing and the impact on rents for local people has been well articulated during this debate. Housing matters are devolved to the Scottish Parliament, but as a Westminster MP, I often get requests from constituents who are struggling to afford rented property. It is not just in tourist cities such as Edinburgh that these problems are acute; rural Scotland also faces housing shortages as a result of the growth in the short-term rental sector. As in rural areas of England, that has an acute impact on the provision of local services, particularly health services; nurses and carers struggle to find accommodation in many of Scotland’s rural communities, and in many areas of the highlands and islands.

The shortage of affordable rental properties also impacts directly on the tourism sector, as many workers simply cannot find anywhere affordable to live. In the islands of Scotland, there are reported cases of many of those important tourism sector workers being forced to sofa surf. In some cases, they have been advised to wait until after 6 o’clock to try to book last-minute accommodation on platforms such as Airbnb—the very platforms that are preventing them from accessing housing in the first place.

Many communities are at risk of being hollowed out by an oversaturation of short-term lets, which not only drive up rent and squeeze out long-term renters by reducing the supply of housing, but cause problems for neighbours and put additional strain on council services. I know from my own casework that a problem that originally affected only Edinburgh’s medieval old town has spread across the entire city, and it is not just about soaring rents and the scarcity of properties for rent. Long-term residents face living with constantly changing groups of tourists, who put pressure on the building or street’s communal waste bins, hold regular and noisy parties, or simply check out early or very late for flights, banging their suitcases down common stairwells at all times of the day and night. In some buildings in the old town of Edinburgh, almost all the flats are now Airbnbs, while the last few remaining residents feel squeezed out and endure constant noise, so the provisions introduced by the Scottish Government and City of Edinburgh Council will be extremely important.

The removal of a large number of properties from long-term rent has an impact on the wider economy, and a city like Edinburgh cannot grow without homes for workers. Living, breathing communities are what make tourist destinations attractive. Four years ago, when the Scottish Government concluded their first consultation on short-term lets, CNN cited the city of Edinburgh, the Taj Mahal, Machu Picchu, Dubrovnik and Iceland as famous destinations that

“can no longer cope with their own popularity”.

That is why City of Edinburgh Council has produced a new tourism strategy, which notes that:

“One of Edinburgh’s most distinctive features is that established residential communities are to be found right across the city, including in the city centre.”

Our council strategy goes on to say:

“The quality of life for residents and the attractiveness of Edinburgh as a destination are inextricably linked. The one cannot suffer at the expends of the other.”

[Anthony Mangnall]

I am sorry to interrupt the hon. and learned Member’s speech. I congratulate her enormously on the proposals that have been put forward in Edinburgh; there is a great deal that we can learn across the country. I just wonder whether there are any forecasts out there of how these proposals are likely to affect the long-term letting market. I know it is a bit early, but it would be helpful to understand whether the measures being introduced in Edinburgh could be replicated elsewhere.

--- Later in debate ---

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to serve with you in the Chair, Dame Caroline. I congratulate the hon. Member for Torbay (Kevin Foster) on securing this important debate and commend him for the focused and thoughtful remarks he made in opening it. I also thank all other hon. Members who have participated in the debate. In particular, I praise the contributions of my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard) and the hon. Member for Westmorland and Lonsdale (Tim Farron). Both have long called for bold action in this area, and both brought home the need for urgency in taking the measures still required to tackle it.

It is not in dispute that holiday homes and self-catering apartments have an important role to play in catering to the needs of tourists, as well as those who require short-term accommodation for work or other purposes. All hon. Members who have spoken clearly recognise the contribution of short-term holiday lets, and the visitor economy more generally, to the prosperity of individual homeowners and local economies in their constituencies. When we respond to the issue, it is absolutely right, as the hon. Members for East Devon (Simon Jupp) and for Totnes (Anthony Mangnall) mentioned, that we should get the balance right.

As we have heard repeatedly throughout the debate, the issue is that the surge in the numbers of homes marketed for short-term holiday lets over recent years has generated a number of significant challenges for communities across the country. Those challenges range from the immediate impact on residents, neighbourhoods and local services of high visitor turnover, particularly when short-term lets are abused by the minority of antisocial or disruptive guests, to the longer-term negative impact on entire communities with respect to the affordability and availability of homes for local people—and, indeed, those who work in the visitor economy—to both buy and rent.

As noted several times in the debate, those challenges are obviously most acute in areas of the country, be they rural, coastal or urban, where the concentration of short-term holiday lets is extremely high. It is worth noting that they are also particularly evident in London, owing to the fact that the Cameron Government decided, by means of the Deregulation Act 2015, to loosen requirements on short-term letting in the capital, allowing properties to be let for a maximum of 90 days a year without requiring planning permission. The Government were warned at the time about the harmful consequences that would flow from the relevant provisions in that Act, not least given that few, if any, London boroughs have the means to monitor and enforce the 90-day limit, but those warnings went unheeded, and short-term let abuse is now rife in many parts of the capital as a result. I feel duty bound, as the only London MP in the debate, to mention that particular problem.

It has been abundantly clear for some time that the deregulated nature of the short-term letting sector is deeply problematic. There is a pressing need to overhaul the sector’s regulatory framework to account for the significant changes that have taken place over the past 10 to 15 years, but also, we would argue, a watertight case for giving local authorities that are struggling to cope with high concentrations of short-term holiday lets the powers they need to protect the sustainability and cohesion of their communities. It is true, as the hon. Member for Totnes mentioned, that measures have been enacted on the business rates loophole and neighbourhood plans to try to tackle the problem, but we argue that they are clearly insufficient, not least because we would not be debating the issue today if they went a long way to solving the problem.

Having opposed for years the very notion that robust regulatory intervention was required to address the negative impact of short-term holiday lets on communities and local housing markets, the Government were finally forced to act in June 2021.

[Anthony Mangnall]

The hon. Member has criticised the Government for introducing policies, but I wonder what Labour’s position is on what the correct level of short-term lets in communities is.

[Matthew Pennycook]

If the hon. Member gives me the opportunity, I will go on to make clear where we differ from the Government, in what they have and have not proposed.

As I was saying, when the Government finally acted in June 2021, they did so only in the most limited fashion, agreeing to have the Department for Culture, Media and Sport consult on a tourism accommodation registration scheme in England. After consistently resisting various attempts to amend the Levelling-up and Regeneration Bill in Committee, so that it might provide local communities with more effective means of redress, the Government were forced to go further late last year. The concession they made on Report, on 13 December, was to agree only in principle to introduce a discretionary registration scheme in England, and only by means of legislation that might come into force as late as autumn next year.

Subsequently urged to go further still by the Opposition—as well as, it must be said, many Government Members—Ministers have now committed, as we have heard, to consult on the introduction of a new planning use class for short-term lets. Let me be clear—here I address the point made by the hon. Member for Totnes—that the package currently on offer from the Government still falls short of the comprehensive suite of measures that we would like to see enacted at pace to tackle this problem. The Government remain opposed to, for example, the introduction of a discretionary licensing scheme of the kind we have proposed on numerous occasions, which we think would be the solution in many parts of the country dealing with particularly high concentrations.

None the less, we welcome the consultation on the new planning use class, just as we welcome the commitment to introduce a new discretionary registration scheme. However, as so often with this Government, where they propose to give with one hand, they plan to take away with the other. Because that new consultation, as the hon. Member mentioned at the outset, also invites views on introducing new permitted development rights that would make it easier to convert dwelling houses into short-term lets, with proposed article 4 direction protections applicable, according to the consultation, only in

“the smallest geographical area possible”.

I encourage hon. Members to go and see what investors are saying about that part of the consultation. They say they are happy with the consultation overall, because the inclusion of that provision makes it light touch, and will make it incredibly attractive and easy for investors to convert properties into short-term lets. I caution the Government about going down that route, not least because the consultation makes clear that what they propose in that expansion of permitted development rights would not be subject to any limitations or conditions, and would apply in national parks and areas of outstanding natural beauty. I want to put on record the Opposition’s serious concerns about the implications of expanding permitted development rights in that way and our intention to scrutinise extremely carefully any measures that the Government might ultimately decide to bring forward in this area.

The more fundamental issue is the frankly glacial pace of the Government’s overall response to the challenges posed to communities across the country by the surge in short-term holiday lets. For many English communities, particularly those with extremely high concentrations of such lets, it is not hyperbole to argue that those challenges are existential, entailing as they do the loss of a significant proportion of the permanent population, as a result of local people simply being unable to find affordable local homes in which to live, and diminished local services and amenities, whether that be local schools, transport links or local small businesses, for those who manage to hang on.

It is not good enough for Ministers to tell those communities that they may be able to establish a registration scheme to gather information about short-term lets at some point next year, if and when the Levelling-up and Regeneration Bill receives Royal Assent, or that they may be able to control the numbers of such properties by means of a new planning use class, at some point in the coming years, if appropriate regulations emerge from the current consultation. Those communities need a response commensurate with the scale of the challenge they face, and they need it urgently.

We urge the Government, not only to rethink the potential further expansion of permitted development rights, as set out in the consultation now under way, but to accelerate the introduction of the discretionary registration scheme, to which they are committed, to legislate for the introduction of a new planning use class for short-term lets without delay, and to give serious consideration to other measures, whether on taxation or licensing, that will almost certainly still be required, so that the communities we have been discussing today will finally have the prospect of securing the full suite of planning and non-planning tools that they need to appropriately regulate the numbers of short-term holiday lets in their areas and manage their day-to-day impact. That is what a Labour Government would do, and it is what we need this Government to do.

Oral Answers to Questions

Anthony Mangnall Excerpts

Monday 20th February 2023 Commons Chamber

[Rachel Maclean]

I thank the hon. Member for bringing this issue to the Floor of the House on behalf of his constituents and communities. We are looking at the issue of registration of second homes through the Levelling-up and Regeneration Bill and other frameworks. We understand that, naturally, people want to go on holiday to beautiful areas, but there is an impact on communities. We need the registration scheme so that we understand and better mitigate that.

[Anthony Mangnall (Totnes) (Con)]

15. What steps his Department is taking to support the provision of housing in rural areas.

[The Minister of State, Department for Levelling Up, Housing and Communities (Rachel Maclean)]

We want to ensure that affordable homes are available to anyone who needs them, including in rural locations where stock is limited and often difficult to replace. Our £11.5 billion affordable homes programme is one of the vehicles through which rural housing is delivered. It will provide thousands of affordable homes in rural communities such as his across the country.

[Anthony Mangnall]

I wholeheartedly agree with the suggestion of my hon. Friend the Member for North Norfolk (Duncan Baker): we need to build more houses and put them in the right places and spaces, in the right style and at genuinely local affordable levels. One of the ways to do that is through community land trusts. Could the Minister outline how we can do better to support community land trusts in south Devon to build the houses that local people need, on a primary residency basis?

[Rachel Maclean]

The Government completely agree with those comments. We are clear that the community-led housing sector offers significant untapped potential for helping to meet housing need. It is the support and close involvement of the local community that helps secure that planning permission, so that we can build the homes that local people support and can afford to buy.

Levelling-up and Regeneration Bill

Anthony Mangnall Excerpts

Report stage
Tuesday 13th December 2022 Commons Chamber

[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.