Holiday and Second Homes Regulation: Cornwall and Isles of Scilly

Noah Law Excerpts

Wednesday 23rd October 2024 Westminster Hall

[Alex Norris]

That is an excellently made point. I always wonder which of these debates attract people watching online; I suspect this might be one of them, and I hope that people have heard that message. We are talking about finding that fair balance, but I am sure we all agree that we have not found it yet.

[Noah Law (St Austell and Newquay) (Lab)]

Although we can all agree that the politics of envy need not play into this discussion, and that we need a proper licensing regime for holiday lets as the furnished holiday lets tax regime ends, does the Minister also agree that we ought to ensure that the homes coming out of that regime do not end up flying under the radar, and in some cases operating unsafely? We need also to look at mitigation or transitional arrangements for that industry to ensure that bona fide holiday businesses in the sector can continue to operate and we do not produce the opposite effect from what is intended with these reforms.

Short-term Lets: Regulation

Noah Law Excerpts

Thursday 12th September 2024 Westminster Hall

[Rachel Blake]

I am glad that my hon. Friend raises that issue, which is twofold. First, it is about a level playing field with other types of business. Secondly, it is about safety for the consumer. I hope that we will have a chance to explore those issues.

There are 27,798 private renters in the Cities of London and Westminster, all of whom will be better off thanks to this Government. The Renters’ Rights Bill demonstrates that the Government are taking the housing crisis seriously, and I look forward to working with my hon. Friend and other colleagues on it as it makes progress through the House.

I think we would largely agree that platforms like Airbnb are not inherently a bad thing. I imagine that many in this room use Airbnb or similar services when we go on holiday, but we cannot deny that this has changed from being a peer-to-peer marketplace to something much broader. What started out as a way to make additional income from a spare room has become a significant cause of the decline in the number of homes available for local residents.

[Noah Law (St Austell and Newquay) (Lab)]

I thank my hon. Friend for securing this debate, which is crucial to the Cornish hospitality industry and housing landscape. Does she agree that while there is a need to establish a truly level playing field, for different kinds of holiday accommodation, including furnished holiday lets, we need to ensure that we support those local bona fide holiday businesses to continue to operate, lest we risk them flooding on to the market as more institutionalised Airbnbs or, even worse, second homes that are not well utilised?

[Rachel Blake]

I agree about the issue of the different types of places and different types of tourism and holiday accommodation. The experience in the centre of London is driven by technology. Previously, the ability to let out a room or even a whole home was much less, but in areas that have longer-standing tourist let economies—such as my hon. Friend’s area and those of other colleagues—we have found that there are different challenges. I believe that those can be discussed through the progression of the regulation of the sector. I thank him for raising that important topic.

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[Mr Joshua Reynolds (Maidenhead) (LD)]

It is a pleasure to serve with you in the Chair, Ms Harris. I thank the hon. Member for Cities of London and Westminster (Rachel Blake) for securing this important debate, and I also thank her for making the distinction between homeowners who sometimes rent out their property when they are on holiday and the commercialised industry that has developed. There is a clear distinction between the two, and I thank her for raising it.

Short-term holiday lets have a role to play in boosting the local economy in holiday and city destinations, as has been mentioned by Members already. Until recently, I was the vice-chair of the VisitWindsor partnership, and I saw for myself the benefits that short-term holiday lets can bring to a town, particularly during events such as the funeral of Her Majesty Queen Elizabeth II and the coronation of King Charles III.

In the 19th century, my constituency of Maidenhead, aided by the advent of the railways, became a popular holiday destination and was known as the jewel of the Thames. Today, it is not necessarily the go-to place for a weekend away, but we still have a number of short-term lets, which are not for holidays but instead support UK and global headquarters based in the town. They provide flexible accommodation for employees and visitors who come to the constituency, spend a few nights in a short-term holiday let and use our local facilities, such as the fantastic restaurants and businesses that we have. That is really welcome, but there is too much of a good thing.

The Royal Borough of Windsor and Maidenhead council is one of many up and down the country that is facing rising housing costs, as it is battling to build both affordable housing, and temporary accommodation for people who find themselves homeless—some of whom have been evicted from properties that have made their way to being short-term holiday lets, as my hon. Friend the Member for St Ives (Andrew George) discussed. Some people are being forced to uproot their lives, take their children out of school and give up their jobs to move elsewhere in the country. It is devastating for everyone involved.

We have heard how councils could play a role in what the future looks like, but we have seen local authorities being asked to do more and more with less and less, which has plunged some into financial crisis. In rural areas, the growth of short-term holiday lets is undermining our communities. Key local services such as bus routes, shops and post offices are closing down. The hon. Member for East Thanet (Ms Billington) mentioned being told, “We don’t have any neighbours.” No Member can fail to be moved by that statement. When we hear something like that, I think everyone is clear that something needs to change.

The Liberal Democrats have long argued for local authorities to be given more powers, backed up by proper funding, to control second homes and short-term holiday lets in their area. We would allow local authorities to increase council tax by up to 500% where a home is bought as a second home, and bring in a stamp duty surcharge for overseas residents purchasing properties. In that way, owners who profit handsomely from the tourism business would be forced to pay back into their local communities.

During consideration of the Renters (Reform) Bill, the Liberal Democrats argued for a six-month moratorium on the marketing of a property as a holiday let if it had been repossessed by the landlord on no-fault grounds. Local authorities are key to this, because they know what is right for their area. The hon. Member for Morecambe and Lunesdale (Lizzi Collinge) spoke earlier about a thoughtful, tailored, local approach, which we would welcome.

We are calling for a separate planning class for short-term holiday lets, requiring owners to apply for a change of use and allowing local authorities to set their own numbers.

[Noah Law]

Does the hon. Member agree that for furnished holiday lets that are subject to planning restrictions, it should be possible to register a change of use given the impending legislative changes?

[Mr Reynolds]

I thank the hon. Member for that intervention. We need to make sure that what we do is backed up by funding so that local authorities are able to enforce the changes that are needed. I would not want to see local authorities having changes forced upon them without the finances and manpower to carry them out. We have seen so many cases recently where local authorities have a duty to do something but not the finance or manpower to do it.

We recognise that local authority housing teams have been hollowed out. Local authorities need the support to be able to enforce whatever decisions are made. I am hopeful that the Minister can tell us the Government’s thoughts about that. I think asking local authorities to put time and work into these changes, with the necessary finance and manpower, will be a worthwhile investment, because it is about time we turned the tide that we have seen engulfing our communities for so long.

I repeat that we need to draw a distinction with respect to people who have gone about this business in good faith. We do not want to penalise them, or people who have inherited a property and become second home owners by default. We all know that short-term holiday lets are growing in an uncontrollable manner. That is the thing that we really need to stop, especially where big business is involved, because it can rip out the heart of our communities. Our proposals would give control back to local authorities and communities, because that is where, as Liberal Democrats, we always believe that power should lie.

Housing: Cornwall and the Isles of Scilly

Noah Law Excerpts

Monday 9th September 2024 Commons Chamber

[The Minister for Housing and Planning (Matthew Pennycook)]

I congratulate the hon. Member for St Ives (Andrew George) on securing this important debate, and I commend him for the forceful but thoughtful case he made on behalf of his constituents. He has considerable experience and expertise when it comes to housing policy and practice, and I listened with great interest to his views and many of his proposals.

I thank my hon. Friend the Member for Truro and Falmouth (Jayne Kirkham) for her incisive contributions and all those who have added to the debate this evening. There is clearly a fierce clarity of purpose on both sides of the House in respect of meeting housing need across the county, and I assure all hon. Members present that the Government are resolved to do what is necessary to ensure that that can happen.

It would also be remiss of me not to acknowledge my hon. Friend the Member for Plymouth Sutton and Devonport (Luke Pollard). He is not a Cornish MP, but his constituency suffers from many of the challenges that hon. Members have touched on; indeed, he is impacted by the challenges coming from Cornwall. He has been a champion over many years for bold action to tackle the housing crisis across the south-west.

As we have heard, the housing crisis in Cornwall and the Isles of Scilly is acute. Eye-watering house price-to-earnings ratios are putting home ownership out of the reach of most local people; an overheated and shrinking private rented sector is placing a severe strain on local economies as well as families and communities; and social housing waiting lists are growing steadily. I recognise that second homes and short-term lets are not the sole causes of those pressures, but none of them can be properly understood without taking into account the sharp increase in the numbers of second homes and short-term lets in the county over recent years—an issue to which I will return in due course.

In the time available to me—there is more of it than I expected when I drafted this speech—I wanted to provide the hon. Gentleman and other hon. Members representing Cornish seats with an overview of the Government’s thinking in this area, and a sense of how we intend to address the challenges around housing availability in the county, with the caveat that there is a limit to the detail I can provide at this point, given that we are a new Government still considering the best options to achieve our aims.

The causes of England’s housing crisis are multiple, but among the most important is our singular failure as a nation to build enough homes of all tenures. That is why this Government are determined to do what is necessary to get the country building again, including by ensuring that we put in place a planning system geared towards meeting housing need in full. On our proposed reforms to the national planning policy framework, I acknowledge the hon. Gentleman’s concerns about the introduction of mandatory housing targets, and I appreciate that he made a nuanced argument, but I am afraid that I am unconvinced by it. The fact that the distribution of homes in his constituency is creating significant challenges for the communities he represents is not, in my view, an argument against ensuring that sufficiently ambitious targets are in place to boost housing supply. Rather, it is an argument for making sure that local planning authorities have the full set of tools they need to manage those distributional challenges, and to plan for development in line with their targets in a way that meets local need.

[Noah Law (St Austell and Newquay) (Lab)]

Will the Minister give consideration to the hypothesis to which the hon. Member for St Ives (Andrew George) alluded, which was that building the wrong kind of housing in Cornwall can beget demand for the kind of housing that we have so struggled to build—namely, truly affordable and social homes?

[Matthew Pennycook]

I thank my hon. Friend for that point. I acknowledge the pressures and the challenges. We need to give local authorities the tools to shape the type of development undertaken—not only through their local plans—and to get a grip on excessive concentrations of second homes and short-term lets. That is the Government’s intention. On the NPPF and housing targets, it is the Government’s considered view that we need to act to increase supply in all parts of the country, and need to take steps to ensure that the housing market responds to the needs of communities. These are complementary, not conflicting, policy intentions.

Oral Answers to Questions

Noah Law Excerpts

Monday 2nd September 2024 Commons Chamber

[Alex Baker (Aldershot) (Lab)]

4. What steps her Department is taking to help promote community cohesion.

[Noah Law (St Austell and Newquay) (Lab)]

7. What steps her Department is taking to help promote community cohesion.

[Jacob Collier (Burton and Uttoxeter) (Lab)]

11. What steps her Department is taking to help promote community cohesion.

--- Later in debate ---

[Angela Rayner]

I thank my hon. Friend for her question. I was proud to serve alongside my good friend Jo Cox in this House, and her words about our common humanity and what unites us ring as true as ever. I have met many local communities, businesses and other groups affected by the acts of deplorable violence that we have seen across the country in recent weeks, including in places such as Stoke-on-Trent and Rotherham. I heard powerful stories from those who experienced appalling violence, but I also heard about how those communities came together to defend their streets and were united against hatred and thuggery. I know that my hon. Friend has been a leader in her own community, and we Ministers will support her and her constituents in the spirit that she has set out.

[Noah Law]

Our community cohesion in Cornwall is being undermined by the housing crisis, with many locals priced out or even facing homelessness. This matter requires urgent attention, and I am therefore pleased that this Government have placed building new homes at the top of our legislative agenda. Can the Deputy Prime Minister ensure that we are building the right kinds of homes in Cornwall—namely, social homes?

[Angela Rayner]

Absolutely, and my hon. Friend is right. We are strengthening housing targets and acting to ensure that local plans are ambitious enough to support this Government’s commitment to 1.5 million homes in this Parliament, including social homes. Under our new proposals, assessed housing need across Cornwall would increase by around 65%, demonstrating our commitment to approving the supply of new homes that his constituents desperately need.

Building Homes

Noah Law Excerpts

Tuesday 30th July 2024 Commons Chamber

[Angela Rayner]

I thank the hon. Member for his contribution. I have not personally dealt with that specific case, but when we make such decisions, we weigh up the advice and planning expertise that we have, and decisions will be made based on the evidence we have. It is an objective way of making a decision.

[Noah Law (St Austell and Newquay) (Lab)]

I welcome the Deputy Prime Minister’s plan to put building homes at the heart of our mission to raise living standards, and to ensure that what we build reflects local views. Will she give an update on plans to give councils greater powers to tackle the scourge of second homes, which put a drag on our communities and economies, particularly in Cornwall, so that we can unlock supplies through that channel?

[Angela Rayner]

I said in my statement, this is the first step but we know there is so much more that we need to do. We have a significant amount of legislation coming forward, about which the housing Minister will be able to update the House. The NPPF is about making sure that we get the housing targets in place, but I understand the point my hon. Friend makes. We need to address many more issues that we face in housing, which is why a significant number of measures were announced in the King’s Speech.