Oral Answers to Questions

Selaine Saxby Excerpts

Tuesday 19th December 2023 Commons Chamber

[Bim Afolami]

There are a couple of things that we need to do. We need to ensure that the industry abides by its commitment to the 5% target. Working with the Exchequer Secretary, my hon. Friend the Member for Grantham and Stamford (Gareth Davies), we must present the right investment opportunities so that the capital goes into the UK in the right way.

[Selaine Saxby (North Devon) (Con)]

9. Whether his Department is taking fiscal steps to reduce differences in the levels of taxation between long and short-term lets.

[The Financial Secretary to the Treasury (Nigel Huddleston)]

The Government provide a different income tax regime for short-term lets compared with long-term lets if they qualify as furnished holiday lets, for which there are stringent conditions. As with all aspects of the tax system, the Government keep the tax treatment of property landlords under review. Any decisions on future changes will be taken by the Chancellor in the context of wider public finances.

[Selaine Saxby]

The changes to landlord tax relief, which fully came in during the pandemic, exclude holiday lets. That has contributed to a significant decline in residential landlords in tourist areas like North Devon. The lack of affordable rental properties has priced out workers, particularly in the hospitality sector, resulting in businesses reducing their opening hours and therefore their tax contribution to the Treasury. Can my hon. Friend provide any hope of levelling the tax playing field to encourage long-term landlords back to the market?

[Nigel Huddleston]

I thank my hon. Friend for her continued interest in this area on behalf of her constituents. The Government want to ensure a diverse and sustainable visitor accommodation offer while protecting local communities, including ensuring the availability of affordable housing to rent or to buy. That is why we are introducing a registration scheme for short-term lets in England, which will be a vital step towards achieving that aim. The Government keep the tax treatment of property landlords under review, but I would be happy to meet her to discuss these issues further.