Rachael Maskell – 2022 Speech on the Short-term and Holiday-let Accommodation Licensing Bill

The speech made by Rachael Maskell, the Labour MP for York Central, in the House of Commons on 9 December 2022.

I beg to move, That the Bill be now read a Second time.

Housing matters. Our communities matter. There can be no greater human right than having shelter, yet in many of our communities housing is being flipped over to short-term holiday lets amid a housing crisis. Housing is snatched to make wealth for investors while housing poverty’s grip freezes families out of their homes and out of their communities. Children are being taken out of school and people are being forced to leave their jobs as they cannot find somewhere to live, all so that others can profit from those dwellings. Villages are becoming desolate and urban streets are being turned into party metropolises. There is something very wrong in what is happening, and our constituents are suffering. My Bill would fix that.

Rural, coastal and urban communities are at the centre of an extraction of wealth and housing that is leaving destitution and despair. For the Government not to license short-term holiday lets but just to register them will let landlords off the hook and deepen the housing crisis. A registration scheme will appease the industry, landlords and short-term holiday let platforms but fail to give local authorities the tools that they need to protect residents. That is why I call for support for my Bill, which would bring fair and balanced changes into legislation.

I am grateful for the support of housing campaign groups such as Generation Rent, Acorn and Action on Empty Homes, as I am for that of Members across the House in the other place. Other countries are years ahead of us, yet the obsession with deregulation has caused the Government to hesitate. It is now incumbent on MPs to ensure that we legislate.

The Government’s new plans to register short-term holiday lets will not give local authorities opportunities to create controlled zones where Airbnbs are banned or numbers limited, nor to raise penalties where breaches of locally determined criteria occur so that fines can be issued or licences removed. My Bill would legislate to achieve that. Measures have been already deployed throughout Europe and in many places across the world. With the Bill, we would simply catch up by addressing the challenge.

A registration scheme tells us simply where holiday lets are, but we already know that because they are listed on public platforms. My Bill would add controls to that and do something about it, unlike the Secretary of State’s current approach. The Government are also calling for a new use class consultation up to the summer, but that concerns me, as a new use class will lock in short-term holiday lets, making it more difficult for such properties to return to residential use. Under my Bill, when the owner changes the property will automatically return to residential use—quick and simple.

The Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020 amended the Town and Country Planning (Use Classes) Order 1987 to introduce a new use class, stating that buildings or lands that were in those particular use classes prior to transfer would be treated as automatically moving into the new use class, according to the House of Commons Library. That would mean that 330,000 short-term holiday lets would be automatically deemed for that purpose. With the stroke of a pen, the Secretary of State is taking a third of a million properties out of residential use, and then requiring a full planning process for each to return to being a residential dwelling—difficult, timely and costly. This has not been thought through.

My legislation would be far more receptive to reversing properties back to housing. In April 2016, just 76,000 properties were marketed on the Airbnb website. That has risen substantially just in the last year by another 14%, but there are many other platforms out there. Every day, 29 more properties flip from residential use to short-term holiday lets. So much time has been lost, which is why we cannot delay.

Matt Rodda (Reading East) (Lab)

My hon. Friend is making an excellent speech. This is clearly a huge issue across the country, including in my constituency in Reading. Does she also believe that more action needs to be taken on the wider range of temporary lettings that can take properties out of use by families, such as some types of student lets and some other temporary lettings?

Rachael Maskell

I thank my hon. Friend for his intervention. So many things need to be done on housing, and I know that a Labour Government will put it foremost in their agenda, to ensure that everyone has a home to live in. In York, we have over 2,000 short-term holiday lets. The Government consulted over the summer about a registration scheme, but that horse has bolted. The market is out of control. It needs regulating, and my legislation would achieve that. With a licence, people do not get just a register but safety certificates, ensuring that standards are in place and complied with. If not, the licence can be revoked. Those are the challenges that we want to be addressed.

We have clearly seen a massive growth in this industry. What started off in San Francisco as an air mattress on a floor is now a £57 billion industry worldwide. That is why we have to get a grip on it. It is not just about a spare bed in the shared economy; whole swathes of streets are now pepper-potted with residential accommodation turning into holiday lets. In my constituency, we have seen a particularly sharp rise. It seems to be an issue for holiday destinations.

Peter Gibson (Darlington) (Con)

I know only too well some of the issues that the city of York has faced over the years, particularly having introduced its own specific rules with regard to houses in multiple occupation in recent years. I wonder whether the hon. Lady has engaged with my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), who has also raised this issue in the House?

Rachael Maskell

I have indeed. Many MPs across the House share an ambition to control this market. At the heart of the issue is the fact that we are losing housing that is desperately needed by our constituents. Also, villages are being hollowed out, which is impacting communities. In places such as York, as these properties spread along family streets, families are being hemmed in by party homes. The trolley comes up the road on a Friday night, and dread grips the community, which knows what lies ahead of it, starting with the music turning up and then sleepless nights, and profane language coming over the garden wall until quiet comes again on Sunday evening. People are desperate for measures to be introduced to control that environment. This impacts greatly on the property market. Demand outstrips supply, and costs in the private rented sector and in owned housing are extortionately high. That is why we need to ensure that good regulation is in place.

Local authorities are also missing out. They are not getting council tax from these properties as they are flipping over to become small businesses, enjoying small business rates exemption. Local authorities are losing millions of pounds, but local authority services are still required. Labour in Wales introduced a doubling of council tax and that is now rising to 300%, making sure it benefits from this situation in order to pay for the services that are often required.

I have mentioned the impact on the local community, but the economy is also impacted as we struggle to recruit, whether, ironically, in the hospitality sector, the NHS, or the perma-crisis that is causing a real challenge in social care. Bed and breakfasts and guest houses are struggling to compete with these deregulated forms of accommodation, too. That is why it is so important that we introduce a licence scheme, which will make such a difference to all our communities.

There is always a darker side with unregulated markets. The lack of accountability harbours an even more worrying trend. In York, we have seen pop-up brothels in short-term holiday lets, businesses that come and are then gone after the weekend. This summer I had a case of a property being used for drug dealing; the landlord knew and did nothing. County lines gangs have learned the benefits of this unregulated industry, as have those exploiting others through modern slavery. I dread to think what is happening around child sexual exploitation. The law is lax and that is why we must legislate.

I therefore say to the Minister that we need to move urgently to get a licensing scheme in place for short-term holiday lets. Let’s licence these lets.