Short-Term Holiday Lets

Lord Campbell-Savours Excerpts

Tuesday 19th June 2018 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, laws on crimes are enforceable in the normal way. I am not sure what the noble Baroness is referring to. As I say, there are avenues for enforcing agreements and planning controls which local authorities can enforce. The Short Term Accommodation Association is making great strides and I would encourage her to meet up with it.

[Lord Campbell-Savours (Lab)]

My Lords, short-term holiday lets, including Airbnb, can now be classified as business premises. Under the small business rates relief scheme, if the rateable value is under £12,000 a small business pays neither business rates nor council tax—effectively it pays no tax—a system that can be abused. How many properties fall under this category and what is the cost to the public purse of this concession?

[Lord Bourne of Aberystwyth]

My Lords, there is no specific Airbnb concession nor one for Short Term Accommodation Association members. They have to pay tax in the normal way, just as the noble Lord and I have to do, and if they are not paying tax that is illegal. However, in defence of Airbnb, it is operating within the law. In London it cannot go further than 90 days. It is prohibited from doing that by the system which it has introduced, which I have seen.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, my noble friend will be aware that such action would almost certainly be a breach of the tenancy agreement and, once again, it would be for the relevant landlord, be it the local authority or a housing association, to ensure that the rigour of the law is applied.

[Lord Campbell-Savours]

My Lords, in the question that I asked I made a statement about the position of short-term lets and the payment of business rates. Is the Minister suggesting that I am wrong? If he is doing that, I think he should check his facts.

[Lord Bourne of Aberystwyth]

My Lords, far be it from me to suggest that the noble Lord is ever wrong. If business rates apply in a particular situation, they should be paid, but if they do not apply, they should not. It is as simple as that.