Western Morning News (Saturday)
MP: Laws must change to boost rental housing
ACORNISH MP has demanded changes to the law to address the housing crisis in the county by making long-term tenancies more attractive to landlords than holiday lets.
St Ives Conservative Derek Thomas was speaking in a debate about affordable homes in Devon and Cornwall, held in Westminster Hall in the Houses of Parliament.
He pointed out that Cornwall had the highest net internal migration of any local authority, and the pressure on the housing stock is growing. This pressure is not helped by houses being left empty by Cornwall Housing, housing associations and churches, and also by family homes becoming second homes or holiday lets, he said.
Mr Thomas said: “The situation is urgent right now. I have so many constituents who are in a desperate situation and it needs rapid and effective intervention that provides a secure home for life.”
He repeated his demand that new powers are needed and should include preventing new houses being used as second homes in perpetuity, and requiring a licence before houses could be changed from primary residences.
And he went on to argue that government policies had unintended consequences, and had in effect driven private landlords out of the rental market. Changes to the taxation of rental income – mortgage payments are no longer allowed as an expense before tax – has made long-term renting less attractive than holiday lets.
The MP said: “Landlords are just
saying we’re not going to do this any more, we’re going to flip our homes into holiday lets.”
Energy Performance Certificates also provide incentives to switch to holiday lets – rental properties are subject to rules about energy that holiday lets are not, which means there is another incentive for landlords to become a holiday let than rent their property to a long-term tenant.
“I don’t object to improving homes, but my concern is that the landlords are increasingly subject to EPC requirements in a way that the holiday lets are not,” said Mr Thomas. “The situation is going to get much worse.
“We are losing these valuable homes, that people enjoy because of legislation that applies to private landlords but doesn’t necessarily apply to holiday lets. I don’t believe it’s a level playing-field.”
In response, the Housing Minister said that he was considering all options and would be holding a round-table debate with MPs and other partners in the South-West to discuss their suggestions.