Short-term Holiday Lets: Planning

Selaine Saxby Excerpts

Tuesday 23rd May 2023 Westminster Hall

[Kevin Foster (Torbay) (Con)]

I beg to move,

That this House has considered short-term holiday lets and the planning system.

Let me start by thanking my colleagues on the Backbench Business Committee for agreeing to schedule the debate and the Members from across the House who agreed to support my application. I also want to thank Parliament’s participation and digital teams, who helped to ensure that those who signed relevant petitions were aware of the debate and helped to gather evidence of the impact of the issue across the UK.

The issues with our housing supply do not have any simple resolution or magic bullet solution. Many factors need to be considered and approaches need to be taken, including reform of our planning system to ensure we can deliver a relentless focus on regenerating brownfield sites and our town centres. The subject of today’s debate—planning—would not on its own resolve the pressures on housing in coastal areas such as Torbay. I will not argue that we should use changes to the planning system to ban all new short-term holiday lets, yet changes in that specific area could make a real difference and the issue needs to be addressed, not least to give confidence to local authorities when granting planning permission for new housing in popular areas for tourism such as Devon and Cornwall. It would mean new homes would become available rather than new holiday accommodation.

The focus for today is on how we can create a planning system that gives local communities the ability to strike the right balance between opportunities to create different accommodation options for tourists and ensuring there is a supply of housing for the local community, which is vital in providing the staff and services to support the visitor economy without which the tourism short lets would not exist.

[Selaine Saxby (North Devon) (Con)]

Does my hon. Friend agree that in addition to the work within the Department it is vital that the Treasury looks to rebalance the tax inequalities between long-term and short-term rental if we are to secure places for people to live in our beautiful constituencies?

[Kevin Foster]

My hon. Friend is absolutely right to highlight that. A range of factors go into the pressures that push some landlords from long-term residential lets to short-term holiday lets. Factors include the system of taxation and whatever wider regulation is in place for landlords. We might also consider what incentives we can provide for people to build to rent. If a company builds a property specifically to rent it as a home, they are likely to offer longer-term tenancies and the landlord is highly unlikely to want to move back into the property, which is one reason why a residential tenancy might come to an end. My hon. Friend is right to highlight that the issue is part of a wider debate about how we ensure there is an adequate supply of housing in our constituencies so that organisations such as the NHS can recruit staff. We have reflected on that issue before. If people cannot find somewhere to live in the local area, clearly they will not take up jobs in that area. That goes to the heart of the debate.

To expand my argument I should define what I mean by a short-term holiday let. The term “short-term letting” is most commonly used to refer to the offering of residential accommodation to paying guests. It can include single rooms within a shared premises or the letting of an entire premises such as a house or flat. Short-term lettings are distinct from private residential tenancies because they do not require the occupier to treat the property or part of it as their principal home. They are also distinct from other forms of guest accommodation such as hotels or hostels as the lettings are in premises that could or would otherwise be used as a permanent residence—in essence, a home.

There is evidence that the number of short-term lettings in England has increased significantly in recent years, particularly because of the development and growth of the sharing economy and peer-to-peer accommodation services such as Airbnb. Those online platforms essentially provide marketplaces that connect people who want to rent out their properties or spare rooms with people seeking short-term accommodation.