Commons Sense

House of Commons · Ministers' Questions

Taxation of Long and Short-term Lets

Tuesday 19 December 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Government aims to ensure a diverse and sustainable visitor accommodation offer while protecting local communities.
  • Government is introducing a registration scheme for short-term lets in England.
  • Department for Levelling Up, Housing and Communities has published a consultation on a planning use class for short-term lets.

Topics (select to filter)

Questions & Answers

Q1 Selaine Saxby
Taxation
Context

The MP is concerned about the impact of tax changes on residential landlords in tourist areas, leading to a decline in affordable rental properties for workers.

Question

Whether his Department is taking fiscal steps to reduce differences in the levels of taxation between long and short-term lets. The changes to landlord tax relief have excluded holiday lets, contributing to a significant decline in residential landlords in tourist areas like North Devon. This has resulted in reduced affordable rental properties for workers, particularly in hospitality.

Answer from Nigel Huddleston

The Government want to ensure a diverse and sustainable visitor accommodation offer while protecting local communities, including ensuring the availability of affordable housing to rent or to buy. That is why we are introducing a registration scheme for short-term lets in England. The Government keep the tax treatment of property landlords under review.

Partly answered

Not addressed: Did not commit to specific fiscal steps to level the playing field between long and short-term lets

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Q2 Selaine Saxby
Taxation Housing
Context

The MP notes the decline in long-term residential landlords due to tax changes, affecting affordable housing availability for workers in sectors like hospitality.

Question

Changes to landlord tax relief have excluded holiday lets, contributing to a significant decline in residential landlords in tourist areas. The lack of affordable rental properties has priced out workers, particularly in the hospitality sector, resulting in businesses reducing their opening hours and therefore their tax contribution to the Treasury. Can my hon. Friend provide any hope of levelling the tax playing field to encourage long-term landlords back to the market?

Answer from Nigel Huddleston

The Government want to ensure a diverse and sustainable visitor accommodation offer while protecting local communities, including ensuring the availability of affordable housing to rent or to buy. That is why we are introducing a registration scheme for short-term lets in England.

Partly answered

Not addressed: Did not commit to specific fiscal steps to level the playing field between long and short-term lets

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Q3 Tim Farron Lib Dem Westmorland and Lonsdale
Housing
Context

The MP is concerned about the impact of Airbnb and similar platforms causing a collapse in long-term rental markets, leading to workers being priced out of their communities.

Question

Throughout Westmorland and Lonsdale we see people ejected from their communities because of the collapse in the long-term rental market into a short-term rental market. Will the Minister go further on fiscal controls to make sure that homes are available for local people to live in? Will he put pressure on ministerial colleagues to change planning law?

Answer from Nigel Huddleston

The Department for Levelling Up, Housing and Communities has published a consultation on the introduction of a planning use class for short-term lets. Through the Levelling Up and Regeneration Act 2023, the Government have introduced a new power to allow councils to apply a council tax premium on second homes.

Partly answered

Not addressed: Did not commit to further fiscal controls or pressure on ministerial colleagues beyond what has already been announced

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