Short-term Lets: Regulation

David Simmonds Excerpts

Thursday 12th September 2024 Westminster Hall

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

It is a pleasure to serve with you in the Chair, Mrs Harris. I add my congratulations to the hon. Member for Cities of London and Westminster (Rachel Blake). It is good to see her following in the footsteps of her predecessor, who secured a number of debates and made many contributions on the impact this issue has on that constituency and others. May I also commend the work that London councils have done on behalf of local authorities in the capital to highlight the impact of this issue and bring forward constructive policy suggestions?

There is a high degree of commitment to cross-party working on this issue. As we have heard, it has an impact on constituencies across the country, not just here in the capital, and it was much debated in the last Parliament, particularly during the era of the covid pandemic. We saw many of our constituents who wished to go on holiday or needed to travel for work unable to use hotels, and they therefore made the best possible use of providers such as Airbnb to secure accommodation that met the covid regulations in place at the time.

Many of us worked on the assumption that post-covid there would be a return to the market as we had seen it before, which clearly has not been the case. At the same time, longer-term changes, driven partly by Government but also by wider issues in the market, have seen reducing profit margins for those in the buy-to-let market and people facing higher costs for the standards of the buildings that they maintain. They have also seen the introduction of significantly increased checks on tenants as a result of the need to crack down on unlawful lettings and market changes more generally, as the big players such as Airbnb and Booking.com have sought to create a greater supply of this type of accommodation for commercial reasons.

Clearly, the regulations introduced in 2015—particularly in the capital, with the 90-day limit and the requirement that somebody had to be paying residential council tax on accommodation for it to be let, as well as ensuring that the hon. Member for Kensington and Bayswater (Joe Powell) would not be able to let out his parliamentary office should he wish to do so—are examples of measures taken by Government with a view to ensuring that this market played a positive role in local communities. However, as has been highlighted by many Members, significant issues clearly remain despite those measures and that high degree of cross-party consensus.

As with many things, I put it to the Minister that there will be an opportunity in the Government’s review of the planning system to consider points about the use classes that would apply to property, in particular to introduce requirements around planning consent being sought for those properties that could create a nuisance because of their proximity to other types of residential development, and to ensure that powers that may be enforced are available to local authorities through the planning system.

[Markus Campbell-Savours]

Is the hon. Gentleman aware that planning authorities can barely wash their own faces, let alone take over the enforcement of thousands of holiday lets? Does he not think that that could be a huge challenge, which could perhaps be better funded through taking money directly from the holiday let operators?

[David Simmonds]

I started my political career as the chairman of a planning committee in London, and I am very aware of the challenges faced by planning authorities—not just in the capital, but elsewhere.

The design of the system around enforcement is clearly intended to ensure that it is financially self-sustaining; we have seen some examples of that with local authorities, including those that have entered into contracts with the private sector specifically to ensure higher levels of enforcement funded by fines and charges levied against those abusing the system. Not all local authorities have reached the stage where they are prepared to undertake that work, but clearly both the available market in providers and the powers and freedoms that local authorities have enable them to do that if they feel that it is an appropriate and proportionate solution to the level of challenges and concerns that they face in their local community.

We know that the current situation reflects a long-standing determination on the part of Governments of all parties to ensure that there is an increase in the accommodation available. Measures such as Rent a Room tax relief, which was introduced many years ago, were intended to ensure that there was a greater supply of flexible accommodation, so we need to ensure that we strike the right balance in this market.

I finish with some observations about the context of the housing market in which this debate is taking place. The UK has the most intensively used housing stock of any major developed country in the world. We have very few derelict or empty properties, so given the level of demand in comparison with other major economies, it is clearly important that we ensure as far as possible that accommodation is available to those who need it.

An element of that will be short-term lets, which play an important role in the economy, but with many people looking to secure longer-term and permanent housing that clearly needs to be a high priority. In taking forward their planning reforms, I urge the Government to consider the fact that there are already an additional 1.4 million new homes in England with planning consent already granted by our local authorities. Priority should be given to ensuring that those consents are fulfilled and those homes are built, rather than prioritising, for example, the deregulation of the green belt.

I also want to bring something else to the attention of those present. In some respects the previous Government’s record deserves criticism, but on measures for net additional dwellings and new homes per calendar year—both major measures on housebuilding—development under the previous Government hit record levels; in fact, in recent years it hit the long-term record for as long as the statistics have been gathered. Indeed, during the last Parliament, a net additional 1 million new homes were built in England alone, in fulfilment of the manifesto commitment.

Many hon. Members have highlighted lots of issues that need to be dealt with effectively. I would encourage the Government to consider how, through their review of the planning system, those issues can effectively be brought forward. They should also consider how existing measures that have been highlighted, such as enforcement powers and the means of recouping costs, which are already available and used widely by some local authorities, could be put into action more swiftly.