Opinion Piece: Short-Term Lets – New Plans will Cripple Valued Sector

“In the excellent BBC sitcom, ‘Yes, Minister’, the eloquent cabinet secretary, Sir Humphrey, refers to politicians generating activity because, “it’s their substitute for achievement”. The words of Nigel Hawthorne’s character returned to me recently as I reflected on the latest developments in the Scottish Government’s handling of short-term lets because while ministers have been very active, they’ve achieved practically nothing.

“It is because of this failure that the Association of Scotland’s Self-Caterers (ASSC), along with industry colleagues, decided to resign from the Scottish Government’s Short-Term Lets Working Group. Despite being proactive and willing to take the initiative at every step of the process, we have been met with nothing but blockages and a lack of understanding.

“Followers of the ongoing debate will have noticed that the Scottish Government is now on its third short-term let consultation, to which the ASSC was delighted to offer our data-backed submission. They will also be aware that back in February, the Scottish Government withdrew their ruinous, poorly planned licensing scheme proposals that posed a huge threat both to traditional self-catering and the broader Scottish tourism sector. At that point, ministers promised to work with the industry and listen to our concerns and engage to make the necessary legislative changes.

“Sadly, the Scottish Government has completely failed to live up to this most simple promise and are going ahead with this folly – practically unchanged.

“In fact, when the licensing order was withdrawn, Kate Forbes MSP said,

“I recognise the concerns have been raised by many B&Bs and self-catering properties in the Highlands about the impact of this legislation. I have listened to those concerns, relayed them to the Housing Minister and I’m pleased that he has acted in this way…I recognise that it has been a very difficult year for tourism, and it’s important that we listen to the industry.”

“Yet, as we now know, the pre-election promises have not materialised. Activity over achievement strikes again!

“Furthermore, as if to add an unneeded punchline to a joke nobody laughed at, the Scottish Government has proceeded to expand the number of tourist accommodation businesses that will be hampered by licensing. As things stand, the revised proposals will make life even more difficult for self-caterers as well as our friends in the B&B sector, glamping and some guest houses.

“Amid the maelstrom of scapegoating, political opportunism, and sheer bloody-minded ignorance that has been kicked up around short-term lets, lies an industry that we are rightfully proud of, Kate Forbes has also said that the short-term lets discussion should be focused on “facts rather than unfounded fears”. We agree – and here are a few examples.

“According to recent research, self-catering is worth £867m to the Scottish economy each year and so it is completely baffling as to why the Scottish Government seems intent on crippling such a vital and valuable sector – especially at a time when small businesses need all the support they can get.

“Moreover, the sector is especially important in rural areas, where this negative impact will be felt most severely. Self-caterers have been a key part of the Highland economy for decades and brings with it a raft of other economic and social benefits to this wonderful part of Scotland. Faced with the prospect of handing over more than £1500 for a licence, as estimated by the Society of Local Authority Lawyers and Administrators in Scotland, nearly half of the businesses are seriously contemplating shutting down forever. It really is that serious and the impact may well be that severe.

“The government’s licensing scheme represents the worst kind of ‘once-size fits all’, scattergun, sledgehammer to crack a nut kind of thinking that will have far more negative unintended consequences than it has perceived benefits – especially for small and micro tourism businesses.

“If we are to recover from COVID-19 and have a tourism industry worth saving, the Scottish Government should listen to the industry and support our calls for a more tailored, sensible, and practical mandatory registration scheme with health and safety provisions. Doing so would encourage good practice, which the overwhelming majority of self-caterers already put into place each and every day, and avoid penalising the hardworking professionals who work tirelessly to help people have memory making-holidays from Orkney to the Scottish Borders. Luckily enough, we have a set of fully workable proposals that would make such a system possible – if only the Scottish Government would care to listen.

“As Scotland emerges from the COVID-19, sectors across the Scottish economy will be faced with real challenges and difficulties, ranging from consumer confidence to the attractiveness of investment. The last thing, especially for a sector as important as self-catering, that any government should do is impose costly, restrictive, and damaging restrictions. We’ve seen what the current government does when it goes for activity – now, let’s see some achievement.”

Fiona Campbell

Chief Executive

Associaiton of Scotland’s Self-Caterers

(published in the West Highland Free Press, 20th August 2021)

ASSC Submits Critical Evidence to Third Scottish Government Short-Term Lets Consultation

ASSC Submits Critical Evidence to Third Scottish Government Short-Term Lets Consultation

The Association of Scotland’s Self-Caterers has submitted its response to the latest Scottish Government consultation on short-term lets.

In its comprehensive and evidence-based submission, the trade body representing the Scottish self-catering sector points to serious government failures to acknowledge the industry’s concerns over the impending licencing scheme.

If implemented, the scheme could cost a modest three-bedroom self-catering property £2,000, far in excess of the Scottish Government’s estimate.

The document points out that the heavy-handed scheme remains completely unfit for purpose even in its revised form and has been unable to convince the industry of the data supporting it.

It also highlights that only superficial changes have been made to support self-catering operators or B&Bs

The ASSC has also argued that the proposals will have a hugely detrimental impact on Scotland’s tourism sector, particularly in rural and remote areas, and form part of an ill-fitting and overreaching approach that fails to consider or address localised issues.

Self-caterers have also drawn attention to legal issues with the licensing scheme, suggesting that it is incompatible with the Provisions of Services Regulations, European Convention on Human Rights, and the Scottish Regulator’s Strategic Code of Practice on several serious points.

The licensing scheme, combined with the control area plans which may be imposed on operators in Edinburgh, would comprise the most restrictive framework in Europe which has the potential to scupper the industry’s recovery in the aftermath of the COVID-19 pandemic.

Rather than continuing along this path, which threatens the future of a key part of Scottish tourism, the ASSC has urged legislators to consider a mandatory programme of registration containing health and safety provisions, an approach that has near-universal industry support.

Association of Scotland’s Self-Caterers Chief Executive, Fiona Campbell, said:

“The Scottish Government’s licensing proposals continue to represent a real threat to Scottish self-catering and are comprehensively and demonstratively unfit for purpose.

“Rather than this blunderbuss approach, the government should listen to our concerns and evidence-based insight, and seriously consider the industry’s mandatory registration scheme.”

“While up until now this process has been a string of disappointments and let-downs, it is not too late for the government to change its course, stay to true to its pre-election promises to the industry, and back small business for a sustainable recovery from Covid-19.”

Read the Consultation Response: ASSC Consultation Response 13.8.21

Read More:

SNP facing legal threat over plans to crackdown on Airbnbs

SNP minister: Short-term lets plans could penalise rural businesses

SNP confirms short-term lets licensing delay as opt-out plans drawn up

‘It’s a sham’: Tourism bosses quit SNP’s Airbnb crackdown group

SNP facing legal threat over plans to crackdown on Airbnbs

STL Regulations Media Coverage

The following media has been generated as a result of the current proposals for short-term let licensing:

Ms Robison had anticipated the consultation, which closed last month would merely highlight “minor points for revision”.
 
She added: “Whilst many of the points raised are familiar from previous consultations, there are some points that require careful consideration, especially if the competency of the legislation is being questioned.

“In addition, we have identified, and will be seeking counsel’s opinion on the order in its present form being ultra vires of the powers under which it purports to be made.”

Under the proposals, local authorities would be able to decide whether a short-term let was suitable based on density, residential amenity and housing shortages in the area.

Pam Gosal MSP says plans to regulate the short-term letting industry in Scotland are “tantamount to going after a fly with a bazooka”

Plans for a licensing scheme for short-term lets in Scotland are not “fit for purpose” and will have a devastating impact on the country’s agritourism sector unless there are significant changes, according to Scottish Land & Estates (SLE).

In response to the Scottish Government consultation on a licensing scheme for short-term lets, which includes glamping sites, B&Bs and holiday cottages, SLaE have reiterated its major concern that these proposals have been shaped with mainly urban hot spot areas in mind and fails to take into account the important role short-term lets play across rural Scotland by providing housing for communities and workers, as well as bringing in vital tourism.

New licensing laws being proposed for short-term let housing could have a devastating impact on Scotland’s rural communities at a time when people are reeling from the wide-scale impacts of Covid-19, according to Scottish Land & Estates (SLE).

It said that glamping sites, B&Bs and holiday cottages – key part of the nation’s infant Agritourism sector – would all fall under the same legislation which had been drawn up to address problems in urban hot spot.

Scottish Land & Estates, which represents rural businesses and landowners, says there is widespread concern over the “one size fits all” approach proposed by government.

The consultation process is potentially in breach of Scottish Government’s own best practice guidelines in terms of transparency, accountability, proportionality, and consistency

On Wednesday August 11, council chiefs looking to combat antisocial behaviour, housing shortages and gentrification took their first step towards a crackdown on Airbnbs and other short term lets by launching a consultation with residents on a suggested ‘control zone’.

Fiona Campbell, chief executive officer of the Association of Scotland’s Self-Caterers, says ‘communities are being hoodwinked’ into believing regulation will solve these problems.

First mooted in January 2020, the Scottish Government dropped the planned legislation in February this year. Tourism and business leaders say the revived proposals are worse.

The move left homeowners furious as they claimed they were acting as scapegoats for the government’s poor housing policy.

‘All the organisations involved in the walk-out have been responsible, willing, and positive parties to the discussions, providing key industry insight and evidence-based analysis, but have been met with obtuse responses and a reluctance to engage, the latest of which represents the final straw for the industry.’

Edinburgh has one of the lowest proportions of social housing in Scotland, with only 14% of homes in Edinburgh being social housing, compared to a Scottish average of 23%. Owner occupier is the most prevalent tenure in Edinburgh, with 59% of homes in this category and 25% private rented homes in Edinburgh, compared to a Scottish average of 14%.

Ms Campbell said: “Edinburgh Council’s draft proposals for a short-term let control zone covering the entire city are wholly disproportionate and lack an empirical evidence base to substantiate claims that such accommodation has reduced housing stock.

In response to the Scottish Government consultation on a licensing scheme for short-term lets, which includes glamping sites, B&Bs and holiday cottages, SLE reiterated its major concern that these proposals have been shaped with mainly urban hot spot areas in mind and fails to take into account the important role short-term lets play across rural Scotland by providing housing for communities and workers, as well as bringing in vital tourism.

Chief executive of of the Argyll and Isles Tourism Co-operative (AITC), Cathy Craig said: “Getting a proportionate amount of registration and legislation in place that allows visitors to have a safe visit but also enables business to do business and to bring that spend into Scotland… that is an issue that needs to be resolved. Making it really difficult for businesses to actually do business by having too much regulation is quite challenging, particularly for small businesses.”

She added: “The industry feels it is not being listened to, and its concerns are not being addressed. They are not against registration…it is the degree to which those businesses need to be regulated that is causing hardship. It is hardship because these businesses, some of them, have not been able to trade for as long as 18 months now.” 10/08/21

Agritourism entrepreneur, Caroline Millar agreed that the threat to the sector was huge – and in direct contrast to the encouragement being offered by other sectors of the Scottish Government:

“For this to be happening when so many businesses are likely to need between five and ten years to recover from the shutdown over the Covid pandemic could lead to a dramatic collapse in both confidence and investment in the sector just as it is beginning to take off.”, 05/08/21

“Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, called the group “nothing but a sham” and accused the Scottish Government of having “shifted the goalposts” and acted with “cavalier disregard and indifference” to the sector’s concerns and ideas.”, 05/08/21

Nearly half of self-catering operators are expected to leave the sector should the plans come into force, thereby jeopardising the recovery of Scottish tourism from the pandemic, 05/08/21

Conservative business and enterprise spokesperson, Jamie Halcro Johnston MSP, said: “It is utterly shocking how the SNP Government has managed to leave these representatives feeling ignored and disregarded following talks that were set up with the sole purpose of addressing their concerns. 05/08/21

All the organisations involved in the walk-out have been responsible, willing, and positive parties to the discussions, providing key industry insight and evidence-based analysis, but have been met with obtuse responses and a reluctance to engage, the latest of which represents the final straw for the industry. 05/08/21

“We have been frustrated at every turn and it will be Scottish B&Bs that suffer if we continue to take part in what has become nothing but a charade,” Chairman of the Scottish B&B Association said. “Our members expect us to act in their best interests, and in the interests of the broader tourism sector, and it has been made abundantly clear that neither the working group nor the Scottish government are interested in that type of dialogue.” 05/08/21

Further, they have accused the government, which is now on its third consultation on short-term lets in four years, of acting with “cavalier disregard and indifference” towards the sector’s concerns about the impending restrictive licensing scheme and of ignoring their proposals for a more workable, proportionate and cost-effective mandatory programme of registration, 04/08/21

Mr Whittle said: “Considering they ditched the same idea just before the election, the decision to resurrect these plans, just as we’re beginning to see a route to recovery from the pandemic, is baffling. Small hospitality businesses are a vital part of our tourism sector but instead of supporting them to recover, this will do the opposite.”, 01/08/21