UK Parliament / Open data

Deregulation Bill

The noble Baroness makes a very valid contribution. Both the noble Lords, Lord McKenzie and Lord Tope, have mentioned that, and I shall come to it in a moment.

We are seeking to provide clarity for Londoners across all boroughs. The noble Lord, Lord Mawson, mentioned London as a capital city and its economy. Last summer nearly 5 million overseas visitors came to the capital. Some of those visitors, as well as UK residents, want to experience London as a local by staying with Londoners who live in London permanently or indeed in their homes while the resident is away on holiday. We know that there are currently thousands of London properties and rooms advertised on websites, but each is potentially in breach of Section 25 as it stands. That is the important point here, and I shall come to that in a moment. There is uncertainty for householders as to whether their local authority will

take action against them for unauthorised short-term letting. Today’s technology enables internet sites, which we have heard about in the debate, to offer services to manage and quality-control short-term lettings. Planning legislation for the capital needs to catch up with the 21st century way of living. Noble Lords talked about their personal experience. Every year, thousands of visitors enjoy their holidays in Londoners’ homes, and such short-term letting is prevalent in areas such as Wimbledon during the tennis fortnight.

Through regulations, we want to provide certainty and consistency for all residents in all London local authority areas about when it will be permitted for householders to temporarily short-term let their property without the need for planning permission. The Government’s amendment to Section 25 crucially retains the main provision for protecting London’s housing for those who live and work permanently in London, while seeking to bring the current legislation up to date. Importantly, we want to make it clear that we do not seek to allow the short-term letting of London’s housing stock on a permanent or commercial basis. The Government do not seek to repeal Section 25 of the 1973 Act or amend its primary purpose of protecting London’s housing supply for Londoners who live and work permanently in the capital. Moreover, the Government fully recognise that London’s homes should not be lost to investors to let out exclusively for short-term lets, and our reforms will not enable this. It is the Government’s intention simply to allow Londoners to let their homes on a short-term, temporary basis, such as when they are on holiday, without having to deal with the unnecessary bureaucracy of applying for planning permission.

Clause 34 enables the Secretary of State for Communities and Local Government to bring forward regulations to prescribe the circumstances in which the use of a home as temporary sleeping accommodation is not deemed a material change of use, requiring planning permission. The clause also allows for regulations to exclude individual residential premises, and premises in particular areas, from any relaxation of Section 25.

I come to some of the questions that were raised. The noble Baroness, Lady Donaghy, the noble Lord, Lord McKenzie, and my noble friend Lord Tope asked about prosecutions. London boroughs have taken enforcement action against short-term letting. For example, in Westminster action has been taken against statutory nuisances and anti-social behaviour. This clause is designed to redress the sporadic enforcement of Section 25. It certainly creates greater certainty for residents who want to let their properties short term. The Government’s intention is to allow more people to enjoy and visit London. We are proposing allowing temporary, short-term letting for only householders and not commercial or permanent short-term letting.

4.45 pm

Various other questions were raised. The noble Lord, Lord McKenzie, talked about how other cities are tightening regulation and asked why we are deregulating. I think that I addressed that in part by saying that the clause applies only to short-term letting for householders and not to commercial or permanent short-term letting.

Another question raised concerned the timing of the legislation, and my noble friend Lord Tope asked about the regulations. As I have already said, regulations will be subject to the affirmative procedure whenever they are introduced. It is certainly the Government’s intention to introduce regulations as soon as possible on Royal Assent. When that happens will of course be subject to the timings.

My noble friend Lord Tope also raised the question of web platforms and the consultation. There was quite a detailed consultation in this respect. The Review of Property Conditions in the Private Rented Sector consultation paper was published in February 2014 as part of a wider consultation. That paper sought views on whether Section 25 of the Greater London Council (General Powers) Act 1973 should be reviewed or updated. In total, there were 97 responses to that specific question. The concerns—some of which we have heard this afternoon—were focused on the removal of Section 25. However, some individuals and providers of online accommodation supported the relaxation that is being proposed in the regulations.

The noble Lord, Lord McKenzie, and my noble friend Lord Tope also raised questions concerning the acute housing shortage. Basically they asked, perfectly pertinently, whether the legislation will add to the problem. Of course, I recognise the importance of keeping London homes for Londoners, and this change will not remove the protection of Section 25. It will amend Section 25 to permit regulations which, as I have already said, will allow genuine householders to supplement their income by renting out their spare room or their property while they are on holiday without having the bureaucracy or the concern and cost of applying for planning permission. The Government also recognise London’s unique circumstances. I assure noble Lords that we will be working with the London boroughs to design the provision to ensure that we achieve the right balance between increasing freedoms for London’s residents and protecting London’s housing supply. The provisions are also intended to ensure that speculators will not be able to buy homes meant for Londoners and rent them out permanently as short-term lets. I have already made it clear that these regulations will follow the affirmative procedure.

The noble Baroness, Lady Donaghy, referred to the model tenancy agreement. Perhaps I may write to her between now and Report on her specific questions.

About this proceeding contribution

Reference

756 cc547-9GC 

Session

2014-15

Chamber / Committee

House of Lords Grand Committee

Subjects

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