Levelling-up and Regeneration Bill

Baroness Bloomfield of Hinton Waldrist Excerpts

Committee stage
Wednesday 22nd March 2023 Lords Chamber

[Baroness Taylor of Stevenage (Lab)]

I am grateful to the noble Lord for that clarification.

The noble Lord, Lord Moylan, set out the four questions asked by his amendments, and they are all very important questions on which I hope we will hear further from the Minister, particularly Amendment 446, which addresses how this is going to be paid for. That is one of a number of questions on fees and costs that appear about many other clauses of the Bill, so I hope we will have responses to those questions.

The amendments from the noble Lord, Lord Foster, largely relate to ensuring that the safety of short-term let properties is not left to chance. It is particularly important that properties left empty for periods of the year are subject to detailed regulation on safety matters. This would also encourage absentee landlords to ensure that their responsibilities are met. Recently, we have seen increasing pressure on social landlords to address safety provision—in fact, there are very stringent new requirements on them—so it is clearly an issue that the Secretary of State takes seriously. We should not have what would amount to an exemption for the owners of short-term let properties in this respect. I hope that may be addressed.

The noble Lord, Lord Foster, also referred to the difficulty of enforcing licensing restrictions without data from booking platforms. Although I agree with him that booking platforms may be unwilling to release that data, it is really important and, without it, enforcement is difficult to address. Local authorities would struggle without effective data collection methods to enforce some of the matters raised in this debate.

The noble Earl, Lord Lytton, referred to the perverse incentives that exist between council tax and business rates. This is really important to data gathering: there is no incentive for councils, because if they collect business rates, they have to send it all off to our good friends at the Treasury, whereas if they collect council tax, they keep it to deliver services to their communities, so there is not much incentive for them to get matters straight here.

My noble friend Lord Berkeley referred to the importance of being reassured of the safety of the building, regardless of the length of time of the let. If you stay somewhere, even if just overnight, you want to be assured that the building is subject to the same safety regulations as would apply anywhere else you stayed.

Turning to the comments of the noble Lord, Lord Shipley, I am very sorry that the noble Baroness, Lady Thornhill, is not in her place today and I hope he will send her our very best wishes for a speedy recovery. He spoke about evidence to the Built Environment Select Committee from south Devon. I heard a great deal on this from my former colleague on the District Councils Network, Judy Pearce, who is the leader of South Hams Council and has been a powerful advocate of a great deal more action on second homes. The suggestion of pilot schemes—or taking advice from Wales, as I am sure my noble friend Lady Wilcox would say—is always a very good idea.

On 21 March, it was reported that changes aimed at restricting the way that homes can be turned into Airbnbs were being introduced, as the Secretary of State for DLUHC was going to bring them in. He acknowledged a problem with holiday lets preventing young people accessing jobs and homes. Can the Minister give us further information on whether that will come into the Bill as government amendments and when we will see government amendments to this effect?

Those are our comments on the amendments submitted. We support the amendments on registration and we certainly support the amendments on safety.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I draw attention to my entry in the register as the owner of a second home in Pembrokeshire, one of the three local authorities that is introducing a licensing scheme—actually, it is not introducing a licensing scheme but a 300% increase in rates unless you rent your house out for more than six months, which I generally do.

This group of amendments concerns the operation of the short-term letting registration scheme introduced by the Bill. To start with Amendment 180, in the names of the noble Lords, Lord Shipley and Lord Foster of Bath—I, too, send my good wishes to the noble Baroness, Lady Thornhill, and hope she recovers swiftly from Covid—I start by acknowledging the important topic this amendment raises relating to holiday lets and second homes.

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[Lord Berkeley (Lab)]

I should be grateful if the Minister could clarify a question that the noble Lord, Lord Moylan, and I put: what are the Government going to be consulting on? Is there a document?

[Baroness Bloomfield of Hinton Waldrist]

I will be coming to that in a moment.

Finally, I turn to Amendments 445, 445A, 445B and 447, tabled by the noble Lord, Lord Foster of Bath. These amendments concern the detail of how the registration scheme will operate, particularly in relation to data sharing and the safety of properties. These issues will indeed be explored in the consultation, and a registration scheme will be designed to ensure that all providers of short-term lets are aware of their legal responsibilities to ensure health and safety in their properties. Infrequent use should not mean that short-term lets do not need to meet safety standards, but that issue will be considered in much more detail in the consultation.

The shape of England’s guest accommodation landscape has changed greatly over the past 15 years. Online platforms have enabled greater choice in accommodation for holidaymakers and have brought many benefits to the tourism sector. This proliferation of a new type of guest accommodation has, however, been unregulated, which has prompted concerns including on safety, as my noble friend highlighted. We want to ensure that England continues to provide a safe and competitive guest accommodation offer, while also supporting those who live and work in our local visitor economies.

That is why the Government launched a call for evidence on this topic, as an important first step in understanding how we can ensure we continue to reap the benefits of short-term lets, while also protecting holidaymakers and local interests. This initial call for evidence, which ran between June and September last year, was indeed led by DCMS, as it follows on from previous work that that department did, as short-term lets are an integral part of the UK visitor economy. A report on that call for evidence will be published at the same time as the consultation on the registration scheme, this summer, and I reassure noble Lords that both departments are working together closely because of their shared interest in the scheme.

It has become clear from the call for evidence process that there is a compelling case for introducing light-touch regulation in this sector, and that is what we are intending to do through the Bill. The Government are also introducing a registration scheme for short-term lets through the Bill. The details of how the scheme will operate will be explored through a public consultation, which will be published before this year’s Summer Recess with a view to the register being up and running as soon as possible thereafter. The consultation is intended to flesh out many different aspects of how the scheme would operate, such as what information would be collected, who would administer the scheme, which requirements should be satisfied as a condition of registering and whether any fees would be charged; it will also cover any enforcement powers, which were asked about by an earlier contributor to the debate.

The important matters on safety that noble Lords raised—

[Lord Stunell (LD)]

I appreciate what the Minister said about enforcement. It was in fact me who talked about that—not my noble friend Lord Shipley, as was widely said. Enforcement is vital because without it, the scheme becomes a dead letter. Making sure that any costs or fees take adequate account of that is quite important.

[Baroness Bloomfield of Hinton Waldrist (Con)]

The noble Lord has made that point well and I will certainly take it back to the department, which will take note of it.

Regarding a precise time definition for short-term lets, it is not the length of time but the activity that is important. In essence, the definition of a short-term let is a dwelling used by a guest, in return for payment, that is not the guest’s main residence

The noble Baroness, Lady Taylor, asked whether the planning changes that the Secretary of State referred to are the subject of the planned consultation on a short-term let use class, as discussed by this Committee on Monday. I recognise that a number of the questions asked by noble Lords will be answered only by the consultation process. However, I hope that, in the meantime, I have been able to offer at least some reassurance; I therefore ask the noble Lord, Lord Foster, to withdraw his amendment.