Commons Sense

House of Commons · Westminster Hall

Second Homes and Holiday Lets: Rural Communities

06 January 2022 · 10 other contributors · 14,575 words

Opened by Tim Farron Lib Dem Westmorland and Lonsdale

Responding minister: Not recorded

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

At a glance

Tim Farron raised concerns about second homes and holiday lets: rural communities in Westminster Hall. Response awaited from government.

Key points

  • The housing crisis in Cumbria and rural Britain has become severe during the pandemic, with affordable homes scarce for local residents.
  • The average house price in South Lakeland is 11 times the average household income, excluding many families from homeownership.
  • Calls for government action include making second homes and holiday lets distinct planning categories and increasing council tax on second homes in hardest-hit areas.

Key requests to Government

The Government should act radically right now by implementing measures such as making second homes and holiday lets separate categories of planning use, providing ringfenced finance for councils, increasing council tax on second homes in worst-affected communities, ensuring all holiday let owners pay council tax, enforcing affordable new builds with funding support, banning section 21 evictions, and regulating platforms like Airbnb.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Tim Farron Lib Dem Westmorland and Lonsdale

The housing crisis in Cumbria and rural Britain has become a catastrophe during the pandemic, with an erosion of affordable homes for local people. The average house price in South Lakeland is 11 times greater than the average household income, leaving families on low to reasonable incomes excluded from homeownership. In many towns and villages, the majority of properties are now empty for most of the year, leading to school closures, reduced bus services, pub closures, and isolated communities. The speaker calls for urgent action from the government to address this issue.

Other contributors (10)
  • Congratulated the hon. Gentleman on securing an important debate and highlighted issues in his constituency like Seaview with 82% second home ownership, suggesting a group of MPs have written to the Secretary of State with over two dozen ideas for addressing second home ownership.

  • Daniel Zeichner Lab Cambridge

    Asked if the hon. Gentleman had considered a statutory registration scheme for all accommodation providers, which was recommended in previous work on Airbnb and the sharing economy.

  • Jim Shannon DUP Strangford

    Jim Shannon praised the scenic beauty of his constituency, Strangford, highlighting its tourism potential and stressing the need for a balance between promoting rural tourism and ensuring affordable housing for locals. He noted that 32% more holiday lets had been approved in the past year in Westmorland and Lonsdale but emphasised that Strangford's figures were lower compared to other regions in Northern Ireland, indicating effective planning controls. Shannon also mentioned a constituent with severe asthma who benefited from moving to a rural area for better air quality.

  • Kevin Hollinrake Con Thirsk and Malton

    He congratulated the hon. Gentleman on securing an important debate about second homes, asking if he was pursuing the Government's first homes scheme to make more properties available for local first-time buyers. Mr Hollinrake highlighted the scarcity of land in rural areas, particularly within national parks. He argued that interventions such as the first homes scheme could address affordability constraints caused by second homes and holiday lets, proposing a 'half-price homes' policy to make properties more accessible for local first-time buyers. He also suggested increasing taxes on non-resident overseas property owners to create a fairer market.

  • Matthew Pennycook Lab Greenwich and Woolwich

    He acknowledged that rural communities need investment, employment opportunities, and tourism but also affordable homes. He cited the negative impact of second homes on local economies, affordability, and services in constituencies like Westmorland and Lonsdale. The growth in short-term lets is affecting first-time buyers and renters, especially key workers. Matthew highlighted the lack of accurate data on second home ownership and holiday lets, suggesting the Government should consider better data collection.

  • Patricia Gibson SNP North Ayrshire and Arran

    I am concerned about the detrimental effect of an over-supply of second homes and holiday lets on rural economies, leading to depopulation. In Scotland, 25,000 second homes exist, which impacts local residents' ability to afford housing. The SNP Scottish Government is devolving powers to councils to regulate these properties. On Arran, there are 726 second and empty homes, constituting 23.7% of the island's entire housing stock, driving up house prices.

  • Rachael Maskell Lab Co-op York Central

    Gratefully acknowledged the debate's importance and pointed out that urban areas like York are also facing similar issues due to 8 million visitors a year, adding factors such as new ways of working. Ms Maskell highlighted the surge in second homes and holiday lets in York, noting that local residents are being priced out of their communities. She cited the 2,500-unit York Central development as an example where public land is likely to be dominated by second homes rather than meeting local needs. Ms Maskell also pointed out the significant rise in property prices and the conversion of student accommodation into holiday lets, impacting affordability for families and workers essential to the city's economy.

  • Robin Millar Con Aberconwy

    Asked whether a farmer who lives elsewhere but owns a home in his family's village should be required to give up that home, highlighting a case from Aberconwy where the issue is less severe than described but still exists. The hon. Member for Aberconwy suggested that the UK Government has powers to address this issue and should not wait for the planning Bill but take action now.

  • Selaine Saxby Con North Devon

    Concerned about the impact of second homes and holiday lets on North Devon's housing market, Selaine Saxby highlighted a significant increase in house prices, reduction in permanent rental properties, and displacement of local residents. She mentioned specific data: 64% of Croyde's properties as second homes; 22.5% rise in average house prices over 12 months; 33% rise in the number of second homes in a year; 67% reduction in permanent rental listings, and a stark contrast in Airbnb versus private rentals in towns like Barnstaple and Ilfracombe.

  • Wendy Chamberlain Lib Dem North East Fife

    Chamberlain highlighted the importance of tourism to North East Fife's economy but stressed the need for a balance. She mentioned that almost one-tenth of properties in the East Neuk were second homes, and anecdotal estimates suggested this could be closer to half of all properties. Chamberlain noted the negative impact on local communities, including reduced school numbers, higher property prices, and employment struggles in hospitality.

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