Category: Legislation

At 26^th October, 25 local councils have now finalised their short-term let licensing policies and operators are able to submit applications. 7 local councils have not – of these, some have just recently finished consultations on draft policies, while others are still consulting.

• Aberdeenshire is not accepting applications until after January 2023, while Argyll & Bute is only accepting applications for new operators until 2023.
• Several local authorities, including Fife and Edinburgh, have acknowledged that their polices are open to legal challenge, which is now being explored.
• As a recent ASSC survey from October 2022 has shown, licencing continues to be a significant concern for the majority of businesses with over 70% concerned about the licence not being granted. 87% consider the scheme to be ‘burdensome’. 49% have considered stopping letting their property. A staggering 94% of those that might sell up say that their property would not be available for affordable housing.
• Since the short-term let legislation was passed by the Scottish Government, and as we moved towards the implementation stage and licensing schemes going live across the country, the ASSC committed to supporting short-term let operators navigate through the legislation.
• Alongside stakeholder partners, the ASSC has hosted 26 Regulation Roadshow events[1], with sessions open to operators of all types of short-term lets, as well as representatives from local authorities, agencies and anyone with an interest in the implementation of the legislation.

As councils have published their final short-term let licensing schemes, this briefing sets out the following:

• The large variation in fees set by councils across Scotland
• Different approaches taken by councils on planning permission
• Examples of additional conditions set by councils which set disproportionate costs on businesses and which go beyond the policy intensions of licensing.

Read the Briefing:  ASSC Briefing – Scottish Local Authority Licensing Schemes Final Policies

[1] ASSC Regulation Roadshow Events: Supported by 25 DMOs / local authorities / trade partners; 2,290 miles travelled in person; face to face engagement with 3,298 people; and a total reach of 10,099* (in person and videos watched).

The ASSC has received clarity regarding the level of Public Liability cover required for short-term lets.

“The draft Licensing Order, consulted on in 2021, required Public Liability Insurance cover of not less than £5m. Amendments were made following feedback received during the consultation about the costs of £5m cover – particularly for those letting their own homes.  We removed the specified figure from the Licensing Order and instead require adequate insurance, and clarified that public liability insurance need only be in place for the time that guests are staying at the premises. Further detail is included in the Policy Note (link and text below):

The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 – Policy Note (legislation.gov.uk)

Insurance

162. Paragraph 15 makes it a mandatory condition for the host to ensure that there is valid buildings insurance in place for the premises for the duration of the licence. It is also mandatory to have valid public liability insurance for the premises for the duration of each short-term let agreement (i.e. whilst guests are staying at the premises).
163. Insurance is important to protect the interests of the owner of the premises (and adjoining residents and owners) and the guest, should any accident, damage or injury occur. Note that the insurance may be arranged by someone other than the host (for example the owner of the premises, where the host is not the owner, or the platform). The fact that public liability insurance need only be in place for the time that guests are staying at the premises makes it easier for hosts to use public liability insurance provided by platforms as part of their booking service. The Scottish Government intends to recommend in guidance that public liability insurance should be at least £2 million for whole property lets and that home sharers should seek advice.”