Deregulation Bill Debate

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Department: Cabinet Office

Deregulation Bill

Baroness Gardner of Parkes Excerpts
Wednesday 11th February 2015

(9 years, 2 months ago)

Lords Chamber
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Lord Shipley Portrait Lord Shipley (LD)
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My Lords, I should declare that I am a vice-president of the Local Government Association. I support the amendment, because I think it is true that new subsection (4) in Clause 31 could result in making it harder for a local council to deliver the lifetime homes and wheelchair accessibility policies that we need. I therefore seek the reassurance of the Minister on this matter.

As we have heard, there is currently a very serious shortage of homes that are suitable or can be easily adapted for those with mobility difficulties. The solution to this problem, as we have heard, is to build new homes to a lifetime standard. This matters greatly and will matter even more in the future because people who develop mobility problems usually prefer to stay in their own homes, where any essential adaptions can be undertaken.

This Bill puts lifetime home standards and wheelchair-accessible standards on to a statutory basis, and that is to be welcomed. The problem is that councils will then be required to produce a raft of evidence to prove that there is a need for those lifetime and wheelchair-accessible homes. Definitions of future need might be hard to prove, when common sense tells us that we should build more accessible homes now for an ageing society to prevent serious problems arising in 10 to 20 years’ time.

Until now, local councils have been able to implement very progressive policies, such as requiring all new homes to be built to lifetime home standards or ensuring that a reasonable number of new homes—perhaps 10%—are built with wheelchair access as part of large-scale developments. In supporting new building standards, which improve things, and in believing that we want to encourage local planning authorities to take them up, and while I accept that the creation of new standards could be a significant step forward, I am still very concerned that we might be weakening existing planning powers of councils. I hope, therefore, to hear from the Minister clear confirmation that nothing in the Bill will get in the way of enabling planning authorities to deliver the extra lifetime and accessible homes that we need now and are going to need in the future.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes (Con)
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My Lords, I strongly support the amendment, and I declare an interest in that I have a daughter who has multiple sclerosis and is a board member of the Habinteg Housing Association. It does marvellous work in providing lifetime homes.

The importance of this has been so stressed by so many people tonight that I do not really need to comment on it. I have other amendments to speak on and noble Lords will be tired of listening to me. However, I strongly support everything that the noble Lord, Lord Best, and other speakers have said and hope the Government will see sense on this.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton (Lab)
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My Lords, we should be grateful to the noble Lord, Lord Best, for moving this amendment, which we wholeheartedly support. If there were any doubt as to whether we were going to support it, praying in aid Nye Bevan just about did it for us. I welcome my noble friend Lady Wilkins back to the House and acknowledge her knowledgeable contribution on an issue on which she has campaigned over a long time. It is good that the noble Lord, Lord Shipley, and the noble Baroness, Lady Gardner, are on the same page as well.

We support the review of housing standards: a lot of good work has come out of it. However, one of the consequences, as we have heard, was that lifetime home standards and wheelchair-accessible standards have become optional extras. That is really the issue before us today. The noble Lord, Lord Best, has probed with a series of questions and I hope that the nature of those questions means that the Minister has ready and satisfactory replies to them all.

I draw the Minister’s attention to a couple of paragraphs of the housing review document. On page 6, paragraph 14, it says:

“Unlike other Building Regulations requirements the optional requirements described in the Approved Documents will not be mandatory. They will only be applicable where a local planning authority has put a plan policy in place specifically triggering the application of the optional requirement or nationally described space standard in particular circumstances. Neighbourhood Planning Bodies (and Neighbourhood Development Orders) will only be able to apply the space standard, and not optional requirements”.

Will the Minister tell us why that is the case? Perhaps more importantly, paragraph 21, which looks at applying optional requirements and nationally described standards, states:

“The first step is for a local planning authority to stipulate that an optional requirement or the nationally described space standard applies in that area. As stated already, this must be set in plan policies, which have been subject to normal Plan Examination processes. It would not be appropriate to apply optional requirements or the space standard through supplementary planning guidance, since this is not subject to a sufficient level of scrutiny”.

Have the Government moved on from that, or is that still applicable?

I have one small observation in relation to financial viability and cost. If the additional cost is £500 to £1,000, that is one or two weeks in a care home invested in a home on lifetime standards now. That obviously obviates that, going forward. I hope the Minister can satisfy us on those requirements, because it would be a great shame, given all the progress that has been made on lifetime home standards—particularly in London—if these developments were to push those backwards.

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Moved by
47: Clause 33, page 28, line 32, after “which” insert “, for the duration of a major national or international sporting or entertainment event taking place in London,”
Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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My Lords, I remind the House that I have declared my interests in the register and have spoken to that effect a number of times as I am the owner of some leasehold flats, which I have let on a long-term basis.

The topic of short lets needs to be addressed in detail. Excellent contributions were made in Committee by the noble Lords, Lord McKenzie and Lord Mawson, the noble Baroness, Lady Donaghy, and my noble friend Lady Hanham. The answers from the Minister were not adequate. It is scandalous that we have not seen the proposed new regulations in print before this Report stage of the Bill. I have asked questions on that matter and made clear the need to consider the regulations before Royal Assent. I am now informed that we will be aware of them only after Royal Assent. That is not good enough. That is too late.

It came as a surprise to me that this issue was to be in the Deregulation Bill at all. When the Delegated Powers and Regulatory Reform Committee considered the draft Deregulation Bill in great detail, this clause was simply not included and therefore received no scrutiny at that stage. It has been slipped in since. Further, I have been told that although deregulation is proposed, new regulations will be required. I find the claim that it is a deregulation issue curious. What is “deregulation” about “reregulation”?

The Minister has said that there was a degree of confusion during the Olympics, and for that reason I think it perfectly fair for the Secretary of State to have complete control at times of great national events. However, I oppose Clause 33 as it stands, and that will be covered later, in Amendment 51. Most local authorities in London tell me that there was no confusion during the Olympics and everyone was perfectly happy with the arrangements that were made. My views on the main issue are largely due to past and current experience. I was a member of the Greater London Council when this legislation was considered and put forward. It was important then to protect Londoners, and it is even more necessary now. London is a special case, and is a drawcard for tourists.

My husband served for a good many years on the London Tourist Board. I have always supported initiatives to boost tourism, but not at the expense of destroying the way of life for long-term residents, particularly in blocks of flats where they can be more vulnerable to the nuisance created by different groups appearing every week, or every two weeks, to occupy the same flats and cause massive disturbances in these blocks. The Government’s view that people should be able to let their homes while they go away on holiday, for not more than 90 days a year, could be quite workable.

With the availability of instant online bookings for flights and accommodation, it is important to keep up to date. I consider 21 days pre-application excessive, and that if local authorities wish to offer a registration system for visitors and short-let tenants, they should be able to develop a fast-track system, enabling people to make better use of available accommodation on offer for a short visit.

Some local authorities, such as Westminster, are very keen to retain controls, and actively use their present system. They would be prepared to adjust to a faster pace of life for processing. They consider that registration, knowing who will live in a place, and for how long, are essential. On the other hand, Kensington and Chelsea tells me that it does not actively pursue anyone who is simply letting their own home, but that it wishes and needs to be able to take action against others who are making life hell for long-term residents.

The block in which I own two flats has 15 flats in all, three of which have been let for well over a year on a short-term basis. Every two weeks, a different 10 people arrive to occupy each of the one-bedroom flats. They abuse long-term tenants, and in some cases threaten them. They leave the door to the street open, as well as all fire escape doors, which means that there is no security at all in the block, as a means of access is available to anyone in the street. These short lets increase anti-social behaviour and fear of crime, and destroy the community carefully built up by the long-term residents.

As this already happens in some central London boroughs, no doubt the practices in central London will spread to other local authorities. As time progresses, the situation will change, as some boroughs wish to maintain high security and ensure that standards of short lets are enforced. As that happens in some boroughs, there will be a spreading from the centre of London into other boroughs. Why do the Government not leave the detail of administrative powers to the local authorities?

In these times of heightened security, the local authority must know who is occupying the property and for how long. Someone has to take responsibility, and in the event of action being needed to protect others in a block, the local council is greatly disadvantaged if it has no idea of who the occupants are or for how long they will be there. The noble Lord, Lord Ahmad, in discussions on the Bill, made clear to me that he views any control as unnecessary bureaucracy. That may be the view of someone who does not want to put themselves out to notify anyone when they go away, but it is certainly not fair to residents in these blocks.

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Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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I hope the noble Baroness will forgive me, but I was a little unclear as to whether she was speaking just to Amendment 47, which has been degrouped, or more generally to the raft of amendments that we will consider. If the noble Baroness is able to clarify that, it would help us to determine how we will proceed.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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I will be happy to clarify that. There seems to have been a slight muddle in that the last amendment I had on Clause 33 was meant to be degrouped, but instead only one was degrouped. I am therefore turning this into a slightly longer and wider field because I lost the opportunity to do that on the previous amendment, which was my original intention. I hope that your Lordships will understand that.

Everything is supposed to be perfect until you do it, then you find—well, I advise noble Lords to read it for themselves. It is from Monday 2 February, in the Evening Standard. There is another whole page on the other side about the woman behind the “unhotel revolution” and pseudo hotels—so it is quite a wide issue. It is interesting that the fraud teams are being brought in to look into the whole issue. I had a reply from the treasury officer when I asked him what of these lettings would be tax free. The answer was, “Nothing, except the right to sublet a room in your own house to a lodger for a sum of £4,000 and something—less than £5,000”. That would be the only free opportunity. It is very interesting that the Serious Fraud Office attended a meeting that we had in the House of Commons in January, partly on this issue but on property in general. There is such an opportunity for fraud that it will be very interesting to know who declares what, with no one able to check on anything at all as to who is in these places, with risks of terrorism and fraud or whatever else is going on. People tell me that they find it almost unbearable, the smell of drugs being smoked in the flat above them, because it becomes so intense to have 10 people in one room. Again, are there no restrictions on how many people can fit into one bedroom? I find it hard to believe that you can have 10 people—and this is in three different flats.

I could go on and on, but I do not intend to, because it is late and the House has had a very busy time, with more to follow. I hope that the Minister will be a bit more open about things, as I am very dissatisfied that Questions for a Written Answer have simply not been replied to. I beg to move.

Baroness Hanham Portrait Baroness Hanham (Con)
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My Lords, with my noble friend Lord Tope, I have three amendments down on this matter. To start with, I point out to the House that this is a very small clause with a very large impact. It consists of six subsections, four of which require regulations. As my noble friend said, not only have we not seen any sight of these regulations but, apart from the Written Ministerial Statement that appeared on Monday, we have no clue what direction the Government take on this, other than that it is a complete liberalisation of the situation as it stands.

My noble friend Lady Gardner laid out in her usual elegant way some of problems with the legislation before us. We have a slightly different view on the emphasis to be placed on this, but we are all agreed—my noble friend Lord Tope, myself, my noble friend Lady Gardner and the local authorities—that this cannot just be allowed to rip. Local authorities have not paid any attention to people letting out their homes for short times. It has been illegal ever since the Greater London Council (General Powers) Act came in in the 1970s but, by and large, there has been a very sensible attitude taken about this—that if it is your home and you can get money in for a fortnight or so, it will not be a matter that a local authority will bother itself with. However, once it is acknowledged or admitted that the situation has been happening but that it is against the law and always has been, somebody does something about it.

London is different from everywhere else. Although the Written Ministerial Statement says in a rather patronising way that these measures, whatever they are going to be, will draw London into the 21st century, we should all recognise that London has actually been living in the 21st century since the 20th century—or halfway through it. We live with a great deal of problems, not only those which my noble friend described about people who come to live in a property for a short time and cause trouble. Another problem is that a lot of the housing now being built is investment property for rent and, unless there are some controls on who can let out accommodation on a holiday let, all hell will be let loose and there will be rentals all over London taking place in an entirely illegal way.

The laws have up to now been broken and there are now companies, some of which my noble friend mentioned, which, unwittingly or not, have enabled people to do that. But a business is building around all this, and there can no longer be any suggestion that this is just people having a one-off whim to go on holiday for a fortnight in New York or whatever and to earn a bit of money on the way. That is not the reality. The reality is that agencies are already set up to deal with people who want to let their houses short term. Some of them will be very good and some will already have measures in place to let houses in a way that means that they are properly managed, they are cleaned up afterwards, they are looked after and their tenants do not cause problems—and there is some security aspect about who those tenants are. However, let us not delude ourselves that that is what will happen. As the business builds, more and more businesses will be built around it. Unless there is some regulation as to what is and is not allowed, we can say goodbye to quite a lot of accommodation that we are pleased to describe as permanent accommodation at the moment.

My amendments do three things. One says that there must be at the very least a fine-touch registration system with the local authority. It can be done quite easily and uniformly across London, with a website—and I have spoken about the royal borough, to which my noble friend has already referred. It can be done securely on a website. What can be discussed subsequently is whether people have to register before they go away or whether they have to register annually and say that they may be going away and letting their property under those circumstances. It requires some indication as to how many days they will be able to do that for, and the Written Ministerial Statement suggests that it should be 90. I do not know about you, but I am jolly lucky to get 90 days’ holiday a year. It seems to be quite a lot—and I think that most families would find 90 days quite a lot to go away. There will have to be a balance between 30 days, which I think has been promoted, although it is very hard to know as we do not have any regulations before us, and the 90 days being proposed by the Government.

There must be some way in which the local authority knows that the property may be let by the permanent owner, and it must have some idea of how long they will be entitled to do that—and for a very good reason. If the local authority gets complaints about that property, it is very helpful for it to know, for enforcement action to be taken, that it is being let by the owner. There are plenty of examples. My noble friend could give spiels of examples of where a property has been abused and people’s lives have been made a misery by lettings such as this and longer term. That would bring the planning authority back into the situation. At the moment, it has been completely chucked out. The provision in the Greater London Council (General Powers) Act goes and is amended with a few regulations that we do not know about and have not seen.

There is what I hope is an unwitting tendency at the moment to keep downgrading London. A later clause in the Bill on waste amends the London Local Authorities Act and this clause amends the Greater London Council (General Powers) Act. London is always going to be different and will always have different pressures and requirements. If every time local authority legislation goes through some of the measures get thrown out, that is not at all helpful or supportive. I think we would all hope that this clause would go away—at least until we have had an opportunity to sort out what the regulations are going to be, and how much regulation, even if it is light-touch regulation, we can put back in. My amendments try to achieve that. It is essential that the Government take note of the concern on this subject and do not try to pretend that London is some doolally maiden of two centuries ago with no idea of how anything works. They must recognise that London is an exceptional place, with great pressure on it from all sorts of sources, such as development, investment and the general movement of people in and out of the city.

I believe that our amendments are proportionate. I apologise to my noble friend the Minister for the fact that it is me—as well as my noble friend Lady Gardner—who is leading the attack from behind him, but I beg the Government to go back and take note of the concerns of London Councils. I should have declared my position as a co-vice-president of London Councils. It represents every local authority in London and it is absolutely against all these provisions.

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Earl of Lytton Portrait The Earl of Lytton (CB)
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My Lords, I support this group of amendments and declare an interest as a professional involved with property, and in particular as having some involvement with commercial and residential management—although not, by and large, in Greater London, I hasten to say.

This matter seems to have started from what might be described as a once-in-a-lifetime event, the Olympics, and the implications of a London-specific piece of legislation; namely, Section 25 of the Greater London Council (General Powers) Act 1974. I follow the point made by the noble Baroness, Lady Hanham, that London appears to be a special case. Why else would that piece of legislation be on the statute book in the first instance?

We are dealing with the potential impacts on the amenity of existing residents. The question of short-term lettings introduces the concept of “churn”—the turnover of occupants, the cleaners, the services, the deliveries, and the implications for security and people coming and going, possibly at odd times of the day and night. With that, there is the natural local authority concern and the issue of public interest in matters of safety and security, including overcrowding, the maintenance of standards, fire precautions and so on. Beyond that, there is the ability to police whatever is put in place to ensure compliance. I have a particular problem with that because, for every block of flats to which such circumstances might apply, if they happen to be in a particularly accessible area near somewhere in our metropolis where there are constant events, one can easily see that a certain proportion could be on this “churn” at any given time. There might be a real question regarding compromising the peace and tranquillity of those who wish to live, work and do all the normal things that normal residents do.

I support the argument that there needs to be knowledge and a degree of control in the hands of the local authority through its planning, building regulations and environmental control functions. London is a special case; there is always something going on there, and that is why it is particularly important to have special regard for it. A less than 50% response—a minority of London boroughs responded—is not exactly an endorsement of what is being proposed by the Government. The noble Baroness, Lady Hanham, who has enormous experience from her involvement with an inner London borough, and the noble Lord, Lord Tope, who has great experience from a little further out, know that these are the issues, and their voices should be listened to. The noble Lord, Lord Tope, had a quick dig at the Minister about what the term “shortly” might mean. I was brought up in the west country, where there were two terms: one was “shortly”, and the other was “directly”. It was important to know that “directly” meant that there would be a quicker response than “shortly”. I hope that no one with west country roots will come back and tell me that I am wrong, but that is what I understood by those terms.

I apologise for continually referring to the noble Baroness, Lady Hanham, but she made a number of good points. I also pay tribute to the noble Baroness, Lady Gardner, for introducing the amendment in the first place and for being assiduous and persistent in plugging the general point. The noble Baroness, Lady Hanham, referred to the fact there is an increasing amount of investment property in London. That means that it is not necessarily governed any more by the wishes of those who live, work, shop and raise children in our metropolis. If we are not careful we will get to a tipping point, where the social profile and how to enforce and govern it get altered to the point of being something other than for those who live and work there. After all, they are the people with the democratic vote.

If we are not careful, this will go right to the heart of the structure of society. Of course, that erosion will be that much more rapid in areas with what we might call continual ongoing attractions, which might attract these short-term lettings—they will be cut most severely. To look at London as a composite whole is wrong. The noble Lord, Lord Tope, identified this as a phenomenon occurring elsewhere. For all I know it might affect areas near Glastonbury, the Hay-on-Wye Festival or any other place where these events go on in the countryside.

We are dealing with a class of lessor—people who allow their homes to be used as short-term lettings by others—who, it must be said, by and large lack the knowledge and expertise of renting in this sector. I do not think that many of them have the slightest idea of what is involved in the wear and tear on the property, what the critical capacity is of the hot water system for their block, or in any of the other matters that might be involved, such as the security at the front door when a large number of people, checked and unchecked, have access to the code to come and go.

I do not see what the Government are proposing as a deregulatory measure as at all deregulatory. It opens up a raft of potential further regulation. If it goes through without further ado I predict that we will be back again in not very many months, trying to patch over the cracks and deficiencies where things have started to go seriously wrong. They will go seriously wrong in the most critical areas of our capital, not in the relatively decentralised areas. There is a real question of how communities, local government or residence associations—or, for that matter, landlords or their agents—will be in a position to control this.

We need regulation, especially as some of the main players operating internationally on the web do so in an almost entirely unregulated environment, as far as I can see. That is putting aside the stories one hears of, which cause immense difficulties: about unpaid local taxation, problems of double booking and things like that, of people apparently thinking that they have a holiday let yet the owner knows nothing about it. All those have come to my attention. I do not know whether they are all completely apocryphal; I think they are probably not. We need some regulation, which really ought to be before this House.

I hope that the Minister will think again. I hope he will realise that, although one would have every wish to ensure that there were means whereby people could capitalise on, for example, Wimbledon fortnight by letting their homes to the wealthy from elsewhere, it would need to be done without it having a negative effect on other individuals, on those whom one might call normal residents and on the whole process of due diligence and the regulatory environment. In general, I am entirely in sympathy with Amendment 47 and the amendments in the group that follows it.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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I am now rising to speak very briefly to the group—

Baroness Garden of Frognal Portrait Baroness Garden of Frognal (LD)
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I apologise to my noble friend but I think that under the rules of the House we are still on Amendment 47 and Amendment 48 has yet to be called. There has obviously been some confusion in that people are speaking to two groups of amendments. I think that Amendment 47 is still being debated.

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Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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My noble friend makes a totally valid point and I apologise—there should have been some closure with regard to Amendment 47. Perhaps I may suggest that I respond specifically to the issues around Amendment 47 and then we can move on. I understand that the amendment, having been called, will need to be withdrawn. Therefore, if my noble friend Lady Gardner is minded to speak to Amendment 48, perhaps she can, first, withdraw Amendment 47, as that will be a useful way of moving on to the more substantive debate.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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I will do so unless anyone wishes to speak.

Lord Avebury Portrait Lord Avebury (LD)
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My Lords, I hope that we are not going to have another speech from the noble Baroness, Lady Gardner, on Amendment 48 when she has already spoken to it.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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No, I have not spoken to Amendment 48.

Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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Unless other noble Lords suggest anything else, what I propose may be the most practical way forward. If my noble friend is minded to withdraw her amendment, we can move on to the substantive debate. Because of the confusion, I suggest that that is what she does. If she wishes to speak to Amendment 48, that is her choice, although I think that many of her points have been covered. However, this is a self-governing House and it is for the House to agree to that. I ask her to withdraw Amendment 47 to allow us to move on to the substantive debate, but of course I succumb to the will of the House on that.

Lord Geddes Portrait The Deputy Speaker (Lord Geddes) (Con)
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The noble Baroness has to indicate that she wishes to withdraw her amendment.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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I thought that the Deputy Speaker had to put that to me before I sought leave to withdraw the amendment. I apologise. I am happy to beg leave to withdraw Amendment 47 on the grounds that it has been very well debated. It was intended to be a separate issue and I shall wish to speak to Amendment 48.

Amendment 47 withdrawn.
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Moved by
48: Clause 33, page 28, line 35, at end insert—
“( ) Regulations under subsection (1)—
(a) must not include circumstances where the premises in question have been used as temporary sleeping accommodation for more than 30 days in that calendar year; (b) must require persons renting out premises under those regulations to provide the local planning authority with the following information at least 7 days before each use as temporary sleeping accommodation commences—(i) the date the short-let stay will commence,(ii) the date the short-let stay will end,(iii) the names and permanent addresses of the persons temporarily occupying the property, and(iv) written evidence that the owners of the property (where applicable) have been notified and given their written consent;(c) may permit local planning authorities to vary the requirement in paragraph (b) by establishing a fast-track procedure to enable persons renting out premises to provide the specified information with less than 7 days’ notice;(d) may permit local planning authorities to levy an administrative fee on persons providing information under this subsection.”
Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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I shall speak very briefly to this. Amendment 48 sets out the terms that local authorities believe are essential to be able to control things. Although it says “7 days” they are quite willing to introduce a 48-hour or even a 24-hour system to do that. That is all I need to say. It is a matter of the Government negotiating but we should have an option. Amendment 50 would enable local authorities to recover costs because enforcement procedure of any sort is terribly expensive and, of course, falls back in the end on council tax payers, or people do not get the service at all because it cannot be afforded. As for Amendment 51, I feel very strongly that Clause 33 in its present form is not good and I would be very much in favour of leaving it out.

Lord Geddes Portrait The Deputy Speaker
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Would the noble Baroness like to move her amendment?

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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Before I move my amendment I would like to thank others who have covered so many points that I therefore do not need to. I beg to move.

Lord Leigh of Hurley Portrait Lord Leigh of Hurley
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I think I am speaking to Amendment 48. If not, I am sure that noble Lords with much greater experience will stop me. Before so doing, I declare an interest as the owner of residential property and as the president of Westminster North Conservative Association.

Clearly, we need Clause 33 because there is a significant problem out there at the moment. Noise and anti-social behaviour from short lets are in the top three complaints we receive when canvassing in Westminster North, and there is an undoubted problem with nomadic communities which make it very hard to plan resources—for example, schooling, rubbish collection and so on. Residents not knowing who their neighbours are increases security problems and we have ended up with a situation in which Section 25 of the GLC Act 1973 is ignored. There is hardly ever any action or prosecutions on it. We have ended up in the worst of worlds where there is a thriving business that is largely underground and a black market, whether housing benefit-funded tenancies or otherwise, run by organised criminals for the benefit often of other criminals.

Having said all that, I am very much for deregulation. I served on the deregulation task force of the DTI in 1995 and would like to see something done to facilitate Londoners legally to enable their properties to be let out to tourists and others to the extent that they are away. We acknowledge that the market for short lets is strong and that people should be able to do what they want with their properties, and in the process take the opportunity to cut out these criminal middle men and try to legitimate the whole business. We need a pragmatic solution. I agree, as has been said, that one of the biggest concerns is where individual flats within blocks of flats are on short let. There needs to be an arrangement whereby leaseholders can all agree collectively on what they want to do on short lets, so that owners and occupiers are not suddenly blindsided by one or two flats being turned into short lets, where some, not all, are used for purposes for which they were certainly not intended. That has led to problems that have been commented on, particularly in the New York market.

Freeing up the market but protecting residents must be done, possibly by creating some sort of opt-in. Tenancy agreements must clearly list expectations and responsibilities. One of the major problems has been in respect of flats let without any gas safety certificates or fire-retardant furniture. Curiously, where people decide to let out rooms in their flat, as can be done, one can only imagine how that will lead to all sorts of unfortunate incidents.

Although Amendment 48 helpfully suggests that the restriction is 30 days, which is reasonable, I am not sure that the proposal requiring seven days’ notice “before each use” is practical. I just cannot imagine that it would work, and it would rather defeat the object of people wanting an immediate short stay.

I will spare your Lordships’ time in going through each of the amendments but I do not think that they are necessary. I wanted to preface my remarks by explaining that I am as fully aware as anyone of the problems and issues in the London market. When I canvass in Westminster North I see it regularly, but I believe that it is possible within the forthcoming regulations for our concerns to be resolved. I take this opportunity to encourage the Minister to come to the House with those regulations as early as possible so that we can see that they reflect the issues about which we are all so concerned.

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Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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The noble Baroness is always well placed to clear up muddles, as she has done so again. I fully accept that she spoke specifically to the issue of the 30 days.

Amendment 49, which would restrict the deregulation only to those properties which are the principal and permanent residence of the owner, and Amendment 49ZA, which would restrict the deregulation to the principal London residence of their owner, are unnecessary and overbearing. They would unreasonably prevent tenants carrying out short-term letting, which may be permitted within the terms of their lease. It would also prevent people short-term letting who may have another residence outside London, even though the London property would be viewed very much as their home.

Amendments 49A and 49B would remove the ability of the Secretary of State to direct that specified areas should be exempt from the changes. The Government want to be able to grant exemptions but only in exceptional circumstances and where a strong case has been made by the local authority. Otherwise, we want to be clear that our aim is to provide the same rights for all Londoners in all local authority areas.

The amendments would create different regulatory approaches across the capital, potentially resulting in differences between local authority areas. Residents would find that their near neighbours had either greater or lesser freedoms to short-term let their property, without any apparent justification.

Amendment 49C would remove the deregulation measures where a relevant enforcement process had taken place. It would also require the Secretary of State to make regulations for local exemptions where there were strong amenity grounds. I can assure noble Lords that we intend to provide that the new flexibility can be withdrawn following a successful enforcement action and that, in exceptional circumstances, local authorities will be able to request that the Secretary of State agree to small localised exemptions from the new flexibility where there is a strong case to do so.

Amendment 50 is also unnecessary in the Government’s view. It is already the case that anyone carrying out illegal short-term letting risks a planning enforcement fine of up to £20,000. It is already possible for local authorities to apply for costs in the event of unreasonable behaviour during an appeal against enforcement action.

I assure noble Lords that the Government’s intention is only to deregulate Section 25 to allow residents occasionally to let out their property on a short-term basis; for example, when they are away on holiday. We are not seeking to create new opportunities for short-term letting on a permanent basis. Our policy document shows how we intend to achieve this in a way which balances the reasonable aspirations of residents to let out their homes temporarily with safeguards to prevent abuse of our reforms.

For these reasons, it is the Government’s belief that Clause 33 should remain part of the Bill. I fully acknowledge that differing views have been expressed by noble Lords, but I think that it is the shared intention of the Government and your Lordships to allow letting of property for residents but not on a commercial basis. I hope that some reassurance has been provided by what I have said and I urge noble Lords not to press their amendments.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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My Lords, I thank the Minister for his reply. He said that he doubted that his previous replies were negative or non-existent, but he should just check his Written Answer dated 7 January in response to my Question referring back to his earlier Answer—my original Question was for oral answer. There was simply no reply at all to Written Question HL3615, which was then repeated. I have gone back on it yet again and there is still no answer.

Lord Ahmad of Wimbledon Portrait Lord Ahmad of Wimbledon
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I will review those Answers with officials and get back to my noble friend specifically on them. If there are other points that she wishes to make, perhaps we could move on.

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Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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My other point is that I am hoping that the Minister will be able to give us some comment or offer to enable us to be sure that the Government are willing to consult local authorities on this matter. That is a big hole in the argument. I notice that the noble Lord, Lord Leigh, drew attention to the seven-day notice period, but I point out to him that, earlier in the discussion, I drew attention to the fact that Westminster Council and, it believes, other councils are willing to offer 48-hour or even 24-hour registration to enable people to come, but it makes the point strongly that unless it knows who is there and for how long, it cannot police it. The Government’s suggestion of 90 days in a year will require officers to go for 91 days, on separate occasions, to be sure that no one exceeds the 90 days. That is totally unrealistic. It would be far better and simpler to have an online registration system to register your interest, then everything would be in order and you would know exactly who was in the place.

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Lord Faulkner of Worcester Portrait The Deputy Speaker (Lord Faulkner of Worcester) (Lab)
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Is the noble Baroness seeking to withdraw her amendment?

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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I am waiting for the Minister to reply before I do.

Baroness Garden of Frognal Portrait Baroness Garden of Frognal (LD)
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I hope my noble friend will agree that the Minister has already given his reply.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes
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I am sorry to hear that, because he really has given no reply on so many points. I find that unsatisfactory but at this time of night, and with so few people here, I would not think it at all fair to test of the opinion of the House. I therefore beg leave to withdraw my amendment.

Amendment 48 withdrawn.