Short-term Lets: Regulation

Richard Foord Excerpts

Thursday 12th September 2024 Westminster Hall

[Richard Foord (Honiton and Sidmouth) (LD)]

It is an honour to serve under your chairship, Mrs Harris. I congratulate the hon. Member for Cities of London and Westminster (Rachel Blake) on calling this debate. Many of us in this House were eager to have it, so we are glad that she secured it. I am also glad that she referred to examples of short-term lets from beyond her constituency of Cities of London and Westminster because it would be a real error to see short-term lets only from the perspective of the sorts of properties that are available in the area outside this Palace in which we speak today.

I urge the Minister and civil servants who might be listening not to draw entirely on examples of the challenges that London boroughs experience around short-term lets. They would be welcome to come at any time to Devon and the Honiton and Sidmouth constituency that I represent to see the fantastic tourist businesses that exist before they consider regulation of the sector.

We must beware of having a one-size-fits-all policy that might fit very well here in London but that does not fit nearly so well in our rural areas and coastal towns and villages, which are quite depopulated. It was only yesterday that there was a debate in this Chamber on the depopulation of rural areas, and such depopulation is what is at stake here.

We know from the Professional Association of Self Caterers UK that traditional self-catering businesses could be subject to some of the new rules that are being introduced after the spring Budget, which was introduced by the right hon. Member for Godalming and Ash (Jeremy Hunt) when he was Chancellor of the Exchequer. The right hon. Member talked about stripping away parts of the furnished holiday let regulation system to create what he thought would be a level playing field. However, I can assure you, Ms Harris, and others that there will not be a level playing field, because there is no level playing field between those traditional holiday lets—the self-catering businesses that are already so excellent—and some of the fly-by-night Airbnb properties that are put on the market for overnight rent but taken off long-term lets. They are neither available to long-term renters nor being marketed to the same standards that we have come to expect of traditional self-catering properties.

This issue is crucial for the economy of Devon. I have with me a report from the Devon Housing Commission, which has been examining the shortage of housing stock in the county. It says that the “traditional” holiday let sector is at risk of losing £779 million of income. That sector encompasses not just those people who let their farmsteads or perhaps their heritage houses; it also includes the food and drink sector and the entertainment and tourist sectors, which depend on holiday makers.

The Liberal Democrats welcome the proposal for a registration scheme and the efforts to try to make more housing available for those seeking long-term lets. However, we also need to be careful. In particular, I urge that we pause the furnished holiday let regime that the former Chancellor of the Exchequer introduced in the spring.

--- Later in debate ---

[Rushanara Ali]

Again, those are really important points that will need to be factored in as we develop these policies. The hon. Member will appreciate that I cannot make commitments today, but we are at the beginning of this Government. We are very keen to make sure we get the policies right. I thank him for the intervention.

[Richard Foord]

The Minister makes a good point about how she and the Government are setting out on a new term and looking at these things for the first time. But the furnished holiday letting regime is set to change in April 2025, so will she consider a pause and looking at that again, given that there has not been any assessment by the Office for Budget Responsibility of what effect it might have?

[Rushanara Ali]

I am going to make some progress, but perhaps I can write to the hon. Gentleman on his specific point.

I return to the point about short-term lets and the wider housing challenge. Through decisive action, this Government will reform the planning system, because we need to increase the building supply. We have our commitment to building 1.5 million homes over the next five years. We will deliver the biggest boost to affordable and social housing in a generation and establishing a generation of new towns. By doing that, we are improving security for millions of people and unlocking essential economic growth—the growth the country needs. The chronic shortage that the country is facing means that owning a home is a distant reality for many. We are committed to achieving a more balanced distribution of homes by directing them to where they are most required, in areas where they are not affordable. Increased supply will help to moderate house prices over the long term, provide for population growth, and improve quality and choice.

We have introduced the Renters Rights’ Bill, which will end no-fault evictions, and we will lay legislation to further reform the leasehold system. We will open up the dream of home ownership to more people by introducing a permanent, comprehensive mortgage guarantee, and give first-time buyers their first chance to buy new homes. We will publish a long-term housing strategy, which will set out our vision for a housing market that works for all and provides long-term certainty for the market.

In closing, I thank my hon. Friend the Member for Cities of London and Westminster for securing this important debate and for her excellent contribution. I thank hon. Members for their contributions on this issue and assure them that we are very much aware of their concerns. We cannot let short-term lets undermine the availability of affordable housing for people to buy and rent. What is more, we are committed to rebuilding our country by taking the steps needed to fix the foundations of the economy and to ensure that everyone has a place to call home. This agenda is really important. It is vital that we respond appropriately, taking into account the insights that many Members have shared today, and I look forward to working with colleagues across parties. I again congratulate my hon. Friend the Member on securing this very important debate.