National Planning Framework 4: Adoption Timeline and Implications

On Tuesday 8 November, the Minister for Public Finance, Planning and Community Wealth, Tom Arthur, presented the Revised National Planning Framework 4 to Parliament.

See his statement here.

The ASSC responded to the consultation on this earlier this year.

An Explanatory Report that outlines the changes from Draft NPF4 to the Revised Draft is also included.

The analysis of consultation responses can be accessed here, with comments on short-term letting on p231.

The Revised Draft National Planning Framework sets out the following policy for tourism:

Policy 30

  1. e) Development proposals for the reuse of existing buildings for short term holiday letting will not be supported where the proposal will result in:
  2. An unacceptable impact on local amenity or the character of a neighbourhood or area; or
  3. The loss of residential accommodation where such loss is not outweighed by demonstrable local economic benefits.

With the traditional self-catering sector already facing an increased regulatory burden during challenging times, the ASSC has concerns about the potential impact of Policy 30.

We firmly believe that there should be no further short-term let regulations in Scotland until the cumulative effect of licensing and control areas has been fully analysed to ensure there are no unintended consequences and that they are clearly meeting policy objectives. 

 In terms of the next steps for the Draft NPF4, the revised draft will be considered by the Scottish Parliament’s Local Government, Housing and Planning Committee before being voted on by Parliament. We will keep you updated in terms of any further developments on this issue.

The analysis of consultation responses can be accessed here, with comments on short-term letting on p231:https://www.gov.scot/binaries/content/documents/govscot/publications/consultation-analysis/2022/11/draft-fourth-national-planning-framework-analysis-responses-consultation-exercise-analysis-report/documents/fourth-national-planning-framework-analysis-responses-consultation-exercise-analysis-report/fourth-national-planning-framework-analysis-responses-consultation-exercise-analysis-report/govscot%3Adocument/fourth-national-planning-framework-analysis-responses-consultation-exercise-analysis-report.pdf

In terms of the next steps, the revised draft will be considered by the Scottish Parliament’s Local Government, Housing and Planning Committee before being voted on by Parliament.

The revised policy for tourism is set out on p88 of the Revised Draft National Planning Framework:https://www.gov.scot/binaries/content/documents/govscot/publications/advice-and-guidance/2022/11/national-planning-framework-4-revised-draft/documents/national-planning-framework-4-revised-draft/national-planning-framework-4-revised-draft/govscot%3Adocument/national-planning-framework-4-revised-draft.pdf

Publication Timeline

NFP4 has been subject to consultation and committee scrutiny over the last year, and was first laid before the Scottish Parliament in November 2021.  Nearly a year to the day later, the revised NFP4 has now been laid before Parliament for approval. It is accompanied by an Explanatory Report, which explains how the Scottish Government has considered responses to the initial draft NPF4 received during the preceding period of parliamentary scrutiny and consultation, in line with its statutory duty.

This is the final stage of NFP4 being examined before adoption.  The revised NFP4 will be before the Scottish Parliament for six weeks (provided there is no recess for more than four days – importantly this means the 40-day period expires just before the Christmas recess begins on 24 December).

Whilst it is before Parliament, there is the opportunity for the revised NFP4 to be debated, however, its terms will not be subject to change – it will either be approved in whole or rejected.  The Scottish Government has committed to providing an opportunity for evidence to be given by the Parliament’s Local Government, Housing and Planning Committee, to allow for an informed vote.

The legal framework for the adoption of NPF4 provides that if the Scottish Ministers change the whole or any part of their proposals in response to consultation, they must undertake “such further consultation with respect to the changes as they consider appropriate”. The legislation does not set out the circumstances in which it would or would not be appropriate to have a further period of consultation.  What is clear is there is no statutory requirement to consult further.  That said, the Scottish Ministers have a duty to consider whether further consultation is appropriate and must act reasonably (rationally) in this regard.  Despite the changes that have been made to the draft that is now before Parliament, the Scottish Government has confirmed that no further consultation will take place.

Ultimately, the final version of NPF4 can only be adopted once it has been approved by a resolution of the Scottish Parliament; if it is well received then it may well be approved by a vote before the end of the year.

The Delivery Programme published alongside NPF4 will act as a guide to all relevant stakeholders on how it will be implemented in due course. The Local Government, Housing and Planning Committee has also agreed to hold annual sessions on NPF4 to assess its impact.

Development Management Implications

NPF4 will form part of the statutory development plan on adoption and publication (assuming the Scottish Minsters commence the necessary provisions in the Planning Act, as promised).  Until then, the Revised NPF4 is a material consideration in development management decision making.

The weight to be given to it prior to publication is a matter for the decision maker – whether that is a planning officer, a planning committee, a Reporter appointed by the Scottish Ministers, or the Scottish Ministers themselves. There has been an understandable reluctance to attach much (if any) weight to the draft NPF4 to date. However, given its advanced stage, that position may now change.

Our understanding is that the publication of NPF4 will coincide with the implementation of certain parts of the Planning Act. A key provision that will come into effect is that in the event of any incompatibility between a provision of NPF4 and a provision of a local development plan, whichever of them is the later in date will prevail. That will include where a local development plan is silent on an issue that is now provided for in NPF4.

The exact procedure for publication of NPF4 and it becoming part of the statutory development plan is quite complex. This note necessarily provides a simplified overview.  Please contact us if you have any specific questions or concerns about what will happen over the next few weeks leading up to publication of NPF4, and beyond.

Thanks to Burness Paull LLP for this update.

The EHHA welcomes European Commission’s Proposal for Regulation of data Collection

Last week, the European Commission published a proposal for regulation of data collection and sharing relating to short-term rental (STR) services.

The European Holiday Home Association (EHHA), the united voice for short-term rental accommodation in Europe, welcomes this first major effort which emphasises the need for proportionate registration at local, regional or national level as a prerequisite for scalable platform data-sharing at EU level. Too often local rules are fragmented, complex and place excessive burden on STR accommodation providers. We hope that this proposal can clarify the role of all stakeholders, including local authorities, in ensuring fairer and responsible STR services across the region.

Short-term accommodation rentals (STRs) are an increasingly important part of the tourism sector. They represent nearly one quarter of the total EU supply of tourist accommodation1, are very popular among travellers and create opportunities for businesses, in particular SMEs, and citizens who use earnings from hosting to cover increasing cost of living. However, STRs are hindered by a variety of regulatory and often burdensome and outdated patchwork of requirements imposed on STR accommodation providers. These often create barriers to access the EU’s Single Market. The EHHA is convinced that a hyper-fragmented regulatory landscape and low awareness of the STR ecosystem3 exacerbates legal uncertainty and poses challenges for effective enforcement.

The Non-Executive Chair of the EHHA, Mr Eduardo Miranda, said:

“Short-term rentals are an essential part of the fast-growing EU tourism economy which creates jobs and opportunities for EU citizens as well as micro, small and medium sized enterprises.

The EHHA members has throughout the years supported STR data sharing with authorities4, in order to facilitate evidence-based policymaking. We believe that a harmonised framework for data collection and reporting, based on fair and proportionate underlying local rules, will help address the current challenges the STRs are facing such as a fragmented regulatory landscape, lack of legal certainty and ineffective enforcement.

We fully support the Commission’s efforts to create a framework for data collection and sharing which, in turn, would allow policy makers to design informed and proportionate local STR rules – rules which comply with the Services Directive.”

Key points on the proposed regulation:

  • This would deliver EU wide data collection, collated at national level, with national level rules
  • Registration schemes would be required by each member state on a national level, on a self-declaration basis
  • Registration numbers will be provided automatically, with any verification / certification to be requested after the process is completed
  • The register would collate activity data (number of nights let), owner contact data, whether properties are shared / entire
  • Member states would be able to add further requirements
  • Any requirements must be proportionate, non-discriminatory and comply with EU law
  • National level regulation implementation would be supervised by the European Commission
  • Further detail will emerge via consultation with member states, which will take approximately 12 months. Once agreed, it may take two years to reach implementation, however this has been prioritised.

Read the full release: EHHA Press release on EU STR Initiative

nb: Art.3, point (i) of 2022/2065: “‘online platform’ means a hosting service that, at the request of a recipient of the service, stores and disseminates information to the public, unless that activity is a minor and purely ancillary feature of another service or a minor functionality of the principal service and, for objective and technical reasons, cannot be used without that other service, and the integration of the feature or functionality into the other service is not a means to circumvent the applicability of this Regulation.”

ASSC CEO Wins Regional Ambassador Award at the Scottish Thistle Awards 2022

Fiona Campbell, Chief Executive of the ASSC said:

“I am thrilled to have won a Scottish Thistle Awards Regional Ambassador Award and I am delighted to accept it on behalf of my hard working team at the Association of Scotland’s Self-Caterers.

 “Our sector has gone through so much in recent years and it is through the hard work and dedication of those within self-catering that we continue to find the resolve to fight for self-catering and tourism in Scotland.

“On behalf of the ASSC, I would like to thank the organisers and offer my congratulations to all those who have been recognised for their efforts.”