Licensing of Short -Term Lets – Analysis of Survey Responses

On 27 September 2021, the Local Government, Housing and Planning Committee launched an online survey to gather views on the Scottish Government’s plans to require local authorities to introduce a licensing scheme for short-term let accommodation. The closing date for submissions was Friday 29 October 2021.

The responses were published today. The analysis was undertaken by SPICe, the independent research unit at the Scottish Parliament.

1237 of the 2578 responses were from owners of short-term lets.

  • Most of the respondents opposed the licensing scheme.
  • When those who opposed the scheme were asked how it could be improved, some highlighted the ASSC’s registration proposal.

The largest single group of respondents within the “other” category, accounting for 60 (22.3%) of responses, were the owners/operators of bed and breakfast accommodation or guest houses. Of the 60 owners/operators of bed and breakfast or guest house accommodation that responded under “other”, 27 (45%) are strongly opposed to the proposed licensing system and 11 (18%) are opposed.

848 respondents who were opposed or strongly opposed to the proposed licensing system also gave additional reasons to support their view. The key themes were:

  • The proposed licensing system is wholly disproportionate to the problems it is trying to solve, which are mainly limited to a small number of urban locales (principally central Edinburgh).
  • There is no robust data to support the proposed licensing system.
  • The proposed licensing system should not apply to traditional Bed and Breakfast accommodation, including small Guest Houses, as these comply with relevant legislation and do not cause issues for neighbours or surrounding communities.
  • Many short-term let premises are already registered and inspected by Visit Scotland, the proposed licensing scheme introduces unnecessary duplication and cost.
  • The proposed licensing scheme should not apply to traditional self-catering accommodation, which already complies with the relevant health and safety requirements.
  • The proposed licensing scheme should not apply to properties built specifically as short-term lets.
  • The proposed licensing scheme places an additional burden on already stretched local authority budgets and staff.
    The loss of short-term lets caused by the proposed licensing scheme could limit choice for travellers and result in job losses amongst tourism businesses and companies that support short-term letting, such as cleaning, laundry, and property maintenance.

In response to the question regarding how the scheme could be improved, key themes included:

  • The proposed Scotland-wide licensing regime should be scrapped, as it is:
    o disproportionate to the problems it claims to tackle
    o duplicates work already undertaken by VisitScotland
    o unfairly penalises the vast majority of short-term let owners, who provide a high level of service and comply with or exceed current regulatory requirements.
    o unclear what problems the proposed scheme is actually trying to address.
  • The registration scheme suggested by the Association of Scotland’s Self-Caterers (ASSC) should be taken forward instead of the proposed licensing system.
  • The proposed licensing system should not apply to traditional Bed and Breakfast accommodation, including small Guest Houses, as these comply with relevant legislation and do not cause issues for neighbours or surrounding communities.
  • Any licensing or registration system must take account of the different challenges facing short-term lets in urban and rural areas.
  • A license should not be required for any property managed by a professional owner/agent and/or accredited by an established trade body such as Visit Scotland or the AA.
  • Licensing of short-term lets should only be introduced in those areas experiencing problems, principally central Edinburgh.
  • Licences should automatically renew, unless there is evidence of non-compliance with licence conditions.
  • Licensing fees should be as low as possible and set at a national level, preventing local authorities from using the system to raise additional revenue.

https://www.parliament.scot/chamber-and-committees/committees/current-and-previous-committees/session-6-local-government-housing-and-planning/correspondence/2021/licensing-of-short-term-lets-analysis-of-survey-responses

 

Covid-19 Update from the First Minister

During her COVID-19 update today which focused on the new Omicron variant, First Minister Nicola Sturgeon covered the following (29/11/21):

  • The FM gave a review of what was currently known about the Omicron variant of COVID-19. She noted that there was still much to be figured out about its potential impact and transmissibility but said that this new variant may be the “most challenging” part of the pandemic.
  • The FM noted that six cases of the Omicron variant had been discovered, with cases found in Lanarkshire and Glasgow. She pointed out that there may have been community transmission already but that this was not known for sure and the government was looking into it.
  • The FM outlined the measures that had been and would be taken. She called for increased compliance with the rules currently in place, especially with home working. She further noted that additional testing would be put in place to track the new variant. The FM also announced that there had been a list of 10 countries put on a new red list for travel and that this was under constant review.
  • The FM said that she and the Welsh FM had written to the Prime Minister calling for a more stringent testing process – including a return to day eight PCR testing. The letter also included a call for the PM to convene a COBRA meeting to discuss this issue and the funding for it.
  • The FM closed by arguing that a “precautionary” approach was what was required and noting that her government would proceed on a “proportionate” basis. She also urged viewers to ensure that they get vaccinated, despite saying that Omicron may be slightly less vulnerable to it. Finally, she reiterated her calls for everyone to follow all the measures and rules in place.
  • During the following session of questions from journalists, the Mail asked the FM to comment on holidaymakers and whether they should cancel their plans. The FM said that she was not willing to do so just now and noted that countries around the world were dealing with similar issues. When pushed by another journalist on the possibility of the PM refusing the requested additional travel measures, the FM replied that she was hopeful of a four nations approach.

SHORT-TERM LET LICENSING: ACT NOW TO PROTECT YOUR BUSINESS

Last week, the Scottish Government set out their revised short-term let licensing regulations. We were incredibly disappointed that they did not go further in responding to industry concerns, particularly as we put forward a proportionate and fair compromise, not to mention the fact that Scottish tourism is still facing huge uncertainty and remains in recovery mode – and as recent news shows, Covid continues to pose significant challenges.

Now that the licensing regulations have been laid in the Scottish Parliament, they will shortly be considered at the Local Government, Housing and Planning Committee and then voted upon by its members. It is likely that the short-term let regulations will be supported by the Committee but they will then head to a vote of all MSPs in parliament.

Members of the ASSC, alongside other small tourism accommodation providers like B&Bs, were instrumental in getting the Scottish Government to withdraw their licensing plans before a vote of all MSPs earlier this year due to the political uproar that ensued. We would like to thank each and every member who helped in that effort.

Make no mistake, the ASSC will continue to leave no stone unturned and lobby tirelessly on your behalf but we are now making an additional ask of you.

This will be the final chance to try and stop these damaging and ill-considered regulations. After years of regulatory discussion, it is unfortunate our views have been largely ignored. The government have also manifestly failed to listen to industry or legal experts, or the local councils that will be charged to deliver the legislation. But we need to make one last plea to protect small businesses in Scotland.

Here is what you can do to help.

  1. CONTACT YOUR MSPs
  • Please contact both your constituency and regional MSPs to highlight the threat to your livelihood from this onerous licensing scheme, note the positive impact your accommodation has had on your local area, and that the government simply hasn’t listened to small businesses or properly considered the ASSC’s exemption proposal for registered businesses.
  • Self-catering benefits the Scottish economy to the tune of £867m per annum and it is disappointing to say the least that policymakers are discriminating against our sector when we have benefitted local economies for decades.
  • As further background, some of the ASSC’s specific outstanding concerns with the legislation are:
  1. Clarity on Fees: there should be a cap on fees, not a scaled approach or just further guidance passed to councils. This would mirror the Scottish Landlord Register.
  2. Renewals: the process should operate on the assumption that a licensing application is renewed through self-certification, again like the Scottish Landlord Register.
  3. Neighbourhood Objections: all neighbourhood concerns over short-term lets should go through the existing system through better enforcement of anti-social behaviour legislation, as well as the use of noise monitoring devices.
  4. Inspections: council officers should not be allowed to turn up unannounced at a tourism accommodation business, especially when guests are in, but seek an appointment with the owner to provide access.
  5. Additional conditions: there should be an element of control over the additional conditions that local authorities could add into their licensing regime. Local councils should not be able to stipulate that they do not want short-term lets operating in tenemental properties, for instance, as this would be the return of overprovision powers via the back door.
  1. CONTACT YOUR COUNCILLORS
  • Short-term let licensing will not only have an adverse impact on our economy, they will also hit local councils at a time when they can least afford it – and the Scottish Government will not provide any additional funds for start-up costs.
  • In your correspondence, you should raise this vital local issue to councillors who may be unaware that the legislation will soon be voted on by MSPs. One thing they will be aware of is the local government elections in May 2022.
  • You need to convey that licensing will not only adversely affect tourism and local economies but will hit already stretched council budgets as this briefing makes clear: https://www.assc.co.uk/the-impact-of-short-term-let-licensing-on-local-authorities/. Moreover, you may find some of the comments from local councils highlighted here to be useful in your email: https://www.assc.co.uk/2021-short-term-let-consultation-responses/
  • You can find your councillors on your local council website.

The Scottish Government’s licensing legislation was withdrawn in February 2021, because it was not fit for purpose; but in December 2021, it remains unfit for purpose. Please implore your local representatives to act to support Scottish tourism and protect livelihoods by rejecting these anti small business regulations.

Thank you,

Fiona Campbell, CEO