Opinion Piece: Scapegoating Short-Term Rentals Won’t Solve The Housing Crisis

There’s a housing crisis in this country.

Scotland, and our capital city in particular, just doesn’t have houses available to meet the needs of our population. This lack of housing represents one of the biggest challenges that we face as a country and, without doubt, something must be done about it – and soon. It is simply too important a problem to be allowed to get much worse.

Before we can begin to resolve this situation, however, we must understand how it came about in the first place. If our medicine is to work for future generations of Scots, and it must, we have to understand how the patient became ill and what the symptoms are.

Sadly, in the context of the housing crisis, this is where our politicians and pressure groups make a huge mistake as they continually misdiagnose the problem and how it came about. Driven by a variety of different individuals, from fringe politicians to respected figures in the property business, some opinion-makers have decided that there is a direct relationship between the number of short-term rentals in Scotland, especially in Edinburgh, and the housing crisis.

Whether they are spurred on by their own self-interest, politically motivated reasoning, or the need to feel relevant, their diagnosis is the same – short-term rentals have caused the housing crisis. No ifs, no buts (and nothing to do with housing cuts).

Far from being just an innocent mistake, the promotion of this falsehood has serious implications. For the same reason that a misdiagnosis has serious ramifications for a patient, without meaningful action, things will get worse.

The truth is that the short-term rental market, while it is worth £50 million to Edinburgh and £723 million to Scotland as a whole, actually accounts for a tiny percentage of housing stock, according to our recently published report, Far More Than Just Houses. In fact, according to national reports statistics, there are five times as many empty properties in Scotland than there are self-catering properties. Short-term rentals simply aren’t there in sufficient numbers to have a significant impact on housing supply.

What has led to the housing crisis is the fact that not enough houses have been built.

While the crisis is not the fault of any one government or party, there is blame that must be shouldered if we are to address the problem like a grown-up country.

The governments of the 1970s through to the 1980s oversaw a massive reduction in housing construction – a trend carried on through the 1990s and the 2000s by successive administrations. This is understandable as governments face competing pressures and committing to house building is a large commitment for any government to undertake; but the facts are the facts and we’ve seen a reduction in housing stock and a steady increase in population. Compared to these factors, whatever increase in short-term rentals there may have been in Scotland or anywhere else is insignificant.

The motivation is perfectly clear, even if it is not justifiable; it is far easier to make a scapegoat out of an industry than it is to look back on the past decades of housing policy and conclude that monumental, era-defining, mistakes have been made in planning and execution. To blame short-term rentals is easy, simple, and can be morphed into a moral crusade for people to get irate and indignant about. A good, hard, honest look at housing policy is difficult.

We at the Association of Scotland’s Self-Caterers, Scotland’s only trade body representing the traditional short-term rental sector, have an interest in it being represented accurately and for all the issues that affect our sector to be handled sensibly and with vision. The scapegoating in the name of finding an easy answer that we’ve encountered is as far removed from this as could be.

Rather than taking cheap-shots at the people who make their livelihoods and support their families in our historic industry, which is as important a part of our compelling and world-beating Scottish tourism offering as any other, policymakers and influencers would be better placed using their sway to get on with the job of building more houses for those who need them. Committing to this would be a bold and difficult decision to make but, as the old adage says, nothing worth having ever came easy.

The number of Scots who are facing housing insecurity is too high. Now is the time for action on housing stock and to stop blaming a sector whose impact on that supply is negligible. Scots deserve better and any politician who took the initiative and worked to help them would have the support of the ASSC and all of our members across Scotland.

Fiona Campbell is Chief Executive of the Association of Scotland’s Self-Caterers

City of Edinburgh Council Tourism Tax Consultation

Results from the public consultation on the introduction of a tourism tax in Edinburgh have now been released.

In terms of the headline statistics:

  • Overall, 85% of the 2,500 respondents backed the Council’s plans on TVL
  • Nine-in-ten (91%) of residents supported the introduction of a TVL
  • More than half (51%) of accommodation providers support the introduction of a levy
  • A majority of respondents (72%) agreed that the Edinburgh TVL should be set at £2 or 2% of the cost of accommodation.

More background information, and comment from Cllr Adam McVey, is available here: https://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-46797446

In terms of the next steps, the final proposal from City of Edinburgh Council on the TVL will be developed for approval by councillors in February 2019, before being sent to the Scottish Government.

Scottish Tourism Alliance responded to the publication of City of Edinburgh Council Tourist Tax Consultation results:

Today’s announcement (9th January) from the City of Edinburgh Council in response to the results of the recent tourism tax consultation is in our view ambiguous in its claims, specifically with reference to the ‘significant’ support from accommodation providers in Edinburgh.

Out of the 2560 responses to the consultation, just 17% were from all businesses types, both within and outside Edinburgh which is very low considering the importance of the tourism economy tourism to the majority of businesses within Edinburgh, and only 7% of these were from Edinburgh accommodation providers.  78% of respondents were from Edinburgh residents and just 3% were tourists.

Figures show that only 87 Edinburgh accommodation providers have indicated strong support for a Transient Visitor Levy within the consultation and it is unclear from the figures released by the City of Edinburgh Council what type of accommodation providers these are.  This number represents less than 5% of all tourism businesses in Edinburgh (1785).

Out of the 435 total number of businesses that responded to the consultation, it is unclear what sectors or areas all of these businesses are in, for example, how many of the 162 ‘Other Edinburgh business including visitor attractions’ are actually visitor attractions, retail businesses or other business that  directly benefit from tourism spend?

Greater transparency is required and we will be seeking clarity from Edinburgh City Council to better understand the results of the survey and pose questions that we and other member trade associations have as a result of today’s announcement.

Garry Clark, the Federation of Small Businesses (FSB) development manager for the East of Scotland, said: “The City of Edinburgh Council survey is an interesting contribution to the ongoing debate in the capital on the merits and drawbacks of a tax on overnight guests to our city. Edinburgh businesses will want to digest these consultation results but many may ask how it addresses evidence suggesting that even a 3 per cent drop in Edinburgh’s visitor numbers could result in a £42m drop in the benefits of tourism to the city.

“As the Council doggedly pursues these proposals, businesses will reasonably expect detail on which firms would have to administer such a tax and what say they would have over how revenues were spent. All of this must also be viewed from the context of how such a tax would impact the tourism industry in Scotland as a whole. Ultimately, tourism is currently a Scottish success story – and we must not do anything to undermine this vital industry.”

Scottish Tourism Month – March 2019 – Glasgow

Scottish Tourism Month – March 2019 – Glasgow

STA Launch STM 2019 Programme:

“We’ve finished putting the final pieces of our programme together for the STA Signature Sessions (new name for STA Signature Conference folks), taking place on 14 March 2019 at the SEC in Glasgow and can now reveal all!

“We’ve changed the style and format of our national tourism conference – we want more energy, something different, more opportunities for you to mix, mingle and learn and we want you all to leave our event feeling high on a buzz from new insights and inspiration.

“Think shorter session times, movement, energy, creativity, nuggets of inspo and fresh thinking.

“Even better news, our Earlybird tickets start from just £77.50+vat. 

“The SEC is THE place to be on the 13th and 14th of March as we’ll be partnering with ScotHot, Scotland’s largest hospitality, tourism and catering show, offering something for everyone connected with Scotland’s tourism industry.  In between our Signature Sessions on the 14th March, you’ll be able to attend sessions at the STA Spotlight Stage within the ScotHot area and visit other workshops which are part of the show.

“Discounted tickets are only available until Friday 11 January”

More information & to book – click Here