Sharing Economy: Short-term Letting — House of Commons, 2022-06-16
Topic: Housing
Nicola Jane Aiken (Conservative, Centre-right): My hon. Friend is absolutely right. One of my constituents from Pimlico who wrote to me recently shares that view: "There has repeatedly been antisocial behaviour in the Airbnb-type flats in Tachbrook Street. The residents have no interest in the wellbeing of their neighbours. The flats are without doubt let throughout the year and the 90-day rule is completely ignored." Post-pandemic complaints have increased in my constituency, with noise, rowdy parties, serious overcrowding, dumped rubbish and even sex work occurring within nightly let properties. From Mayfair to Marylebone and from Hyde Park to Covent Garden, no neighbourhood in Westminster is now free from the short-term let blight On the ground, we have seen some pretty clear signals that short-term lets are increasingly causing social damage to our neighbourhoods. A YouGov study from 2019 found that 40% of Londoners felt that such accommodation was having a negative impact on the local sense of community. Worryingly, it also showed that one in five Londoners, when asked, felt that short-term lets had had a negative impact on safety in their local area. If these properties were rented out for just a few days a year, this issue might be manageable. However, as mentioned earlier, we know that is not the case. Local authorities lack the tools necessary to enforce the 90-night rule. As such, complaints are rising and communities are suffering On antisocial behaviour, yes, the police and local authorities have powers to tackle it with antisocial behaviour and noise orders, but we do not always have the information needed to identify those involved. Of course, it is very hard for us to make general statements about what we would or would not think was a good idea, because this is a complex issue, but as I said earlier it is about flexibility. It is about giving local authorities the tools they need to protect their local areas. We have to be practical when it comes to enforcement measures. Right now, what continues to frustrate me, and I know thousands of my constituents, including councillors and officials in my local council, is that enforcement is virtually impossible, particularly when we do not know who is undertaking the antisocial behaviour. The lack of data makes it extremely hard for local authorities to identify them and then begin enforcement action We need a change in the law to allow local authorities to fine landlords of properties that violate the rules, such as those on dumping rubbish. At the moment, responsibility lies with the tenant, not the landlord, even though the tenant will be long gone after having rented the property for a couple of nights—they have dumped the rubbish and they have gone. What we need is exactly what the former leader of Westminster City Council, Councillor Rachael Robathan, called for in response to more than 2,000 breaches of short-term letting rules—namely, to allow councils to go after the landlord rather than the short-term letter. That would help resolve the issue The issue of tax compliance is also of concern. As the home sharing phenomenon becomes more mainstream, an important taxation revenue stream needs to be captured. As it stands, it is possible for landlords to hide their activities from Her Majesty’s Revenue and Customs and to perhaps not tell the truth on their self-assessment forms. If local authorities were able to collect data on what properties are being let out on a short-term basis, HMRC could access that data and ensure that no one was able to avoid paying tax on any money raised. In 2018, the Government issued a call for evidence on the role of online platforms in ensuring tax compliance by their users, but there do not appear to have been any major developments since then. Ensuring proper compliance would go some way to levelling up the playing field with other parts of the tourism economy. As highlighted by UK Hospitality: "Between the short-term lets, hotel and B&B sectors, a regulatory mismatch has also occurred in terms of health and safety and taxation." I appreciate that there is a degree of self-regulation in the industry, but that is not enough. While hotels and B&B businesses must go through all sorts of checks and regulations to ensure the safety and wellbeing of their guests, the same oversight does not exist for short-term letting. For example, while Airbnb insists on things such as insurance indemnity, proper fire precautions and safety certificates for gas and electricity, I have met Airbnb hosts who have not once been asked by a platform to prove that they meet those requirements. If we were able to collect tax receipts from short-term lets, that could and should help in the enforcement of laws. It is not just about tax collection; we also need to make sure that landlords are on the same playing field as bona fide hotels and B&B businesses I want to make it very clear that I am not against short-term letting. I absolutely recognise the many positives. As an Airbnb user in the past, I have benefited from being able to rent a home while on holiday. Short-term letting has provided and does provide an innovative and imaginative competition to the accommodation industry. However, the bottom line is that those positive impacts are paired with negative impacts, including lower health and safety standards; unfair competition for other hospitality providers; general economic issues such as mixed tax revenues and less availability of long-term rentals; increased rents and house prices; and pricing ordinary local people out of their area’s housing and rental markets. That is happening not just in central London but across the UK. In many cases, neighbourhoods have changed, with issues including antisocial behaviour, overcrowding of properties and transient communities A sustainable approach, hopefully in the form of evidence-based, data-driven regulation and policy making, should address some of those issues. As I said earlier, there is no easy fix, no one-size-fits-all approach, but there are certainly stepping stones that we need to introduce. I hope that the Minister will pay serious attention not just to what I have said but, more importantly, to what we will hear later in this debate from Members of all political parties.