Equal Opportunities: Impact of Short-Term Regulations on Women

The Equalities Impact Assessment (EQIA) [1] “demonstrates that there are no potentially negative impacts to equality groups as a result of the introduction of our short-term lets licensing scheme and planning control areas”.

However, according to the ASSC Sectoral Survey into Self-Caterer Access to Covid-19 Business Support Week 3 (April 2020)[2], the majority of self-catering businesses are run by either females or partnerships where the self-catering element of the business is managed by the female[3], with just 12% of operators being male.

This is conducive with females being able to fit the operation of their business around child-care and other responsibilities. The prejudice applied to the Scottish self-catering sector will therefore have a disproportionate impact on women.

Case Study 1

 “Why am I so concerned about the future of tourism in Scotland?

I am a 75 year old female.  For almost twelve years I have managed a two bedroom flat in Edinburgh which I run as a small holiday let business.  The income from this, while modest, is a very valuable adjunct to my small state pension and has given me much pride and pleasure.  

“My situation may well be typical of many other married women, juggling childcare with other commitments, but who have built up a small business of their own to provide them with an independent income or to boost a pension and in addition, very importantly, to maintain a feeling of self worth and satisfaction from doing a job well.

“I had previously let out this two bedroom flat to students, but did not wish to be tied down to any tenancy agreement where it would not be easy for me to evict undesirable tenants, or gain access for essential repairs and maintenance.  With my daughter’s invaluable help in marketing the property, I have really enjoyed  welcoming guests coming to Edinburgh for a variety of reasons, providing them with local information to maximise the enjoyment of their stay in comfortable and interesting short term accommodation. 

“The majority of guests are in the city for tourism purposes, some with children or elderly parents;  but I have also been delighted to welcome guests on short term work placements in the banking or retail sectors; families with a parent or child in hospital in the city, or who are in Edinburgh to receive treatment themselves; parents coping with the sudden death of a child in hospital and needing a private space to stay for a short time;  parents from various parts of the world who are anxiously visiting their student sons and daughters or who are attending their graduation; visiting university lecturers, researchers and post graduate students needing peace to work for a short time.  None of these guests chose to stay in hotels, which would not have given them the privacy and flexibility they required.

“There is a place for hotel accommodation, complemented by privately run holiday accommodation for those on a smaller budget or who require a private space for whatever reason. 

“I am proud to say I have had excellent feedback from my guests who have appreciated the personal contact with an owner who truly cares about their comfort and enjoyment. 

“The apartment is a ground floor flat, renovated to a high standard, with good sound insulation.  I have had no complaints from any of the other residents in the building, only gratitude has been expressed that I am active in keeping the entrance hall clean and the pavement swept and free of litter.

“I am deeply concerned about the future of tourism in Scotland if further legislation is introduced, which will only inhibit owners from investing in repairs and upgrades to their properties and equipment, if there is an ongoing uncertainty about the future of these small businesses where profit margins in many cases are already small.

“The current uncertainty causes me great anxiety about the future business prospects of my son and daughter, one involved in developing the software for  online booking systems for short term lets, the other with marketing carefully selected, good quality holiday properties.  Both have invested huge amounts of time and skill and have made financial sacrifices to establish their much praised and vibrant businesses but the current uncertainty of future sustainability has created unimaginable levels of stress.

“Countless European hospitality workers have not surprisingly decided to opt out, as it would appear that Britain is no longer such a welcoming place to live; the pandemic has had disastrous economic consequences for the catering industry;  and now the Scottish Government appears to be hell bent on shooting the Scottish tourism industry in the foot.  I am quite sure that the small but vocal group which supported Andy Wightman’s campaign within the Green Party will be rather surprised to learn of the wider ramifications and long term effects of their actions which may well affect their own holiday plans in the future.  And it will be too late.”

(Owner of one holiday let property in Edinburgh)

Case Study 2

I am a working mother, a decade in to my career in an industry I love.

“I manage Holiday Lets in Edinburgh on behalf of private owners, and take great pride in welcoming respectful guests to quality accommodation, and sharing with them the city I choose to call home.

“The past few years has seen a growing narrative around Edinburgh Holiday Lets that is soaked in vitriol. It is a personal argument that does not consider the real facts or the real people at the heart of this vital market. A market that provides elasticity in tourism accommodation, £867 million a year to the Scottish economy, and hundreds of jobs.

“Those who take umbrage with the concept of Airbnb seem to picture unscrupulous property barons, living in tax havens. The reality could not be further from the truth. The majority of people most prevalent in this industry have two things in common: they are are women, and they do not own the properties that they service. The introduction of onerous and unjustified regulation that will all but wipe out Holiday Lets in Edinburgh may force owners to reassess how they capitalise on their assets (or worse, leave them sitting empty), but the impact on this community of hardworking women will be devastating. The 10 women that I employ locally, and the many women-led businesses that we work closely with in Edinburgh, the hundreds of women managers, cleaners, and operations teams across Scotland. We simply will not survive.

“I am deeply concerned for the future of my industry, and for my ability to provide for my family post-regulation. The truth is that the inevitable destruction of the Holiday Let market in Edinburgh will leave me not only without a job, but also having to face finding a new profession and starting my career from scratch. 

“This is what I do, this is who I am.”

Case Study 3

 “After obtaining two degrees in my twenties I had the privilege of teaching and supporting young adults in High School with additional needs – a challenging but rewarding job which I cherished for almost a decade. Meanwhile my husband had been building Harpers Concierge Services with me in an advisory role.

 “Five years ago we had our son and with that came a shift in my view of work – I loved my job but teaching is incredibly inflexible. One of the most important things for me as a parent was to be able to give my son my time, be there when he wasn’t well or his first day of school etc and I knew that the best way to enable this was to step back from my job and take a more active role in Harpers.  

“My job allows me to have control over my work life balance way more than my previous role. I was also able to return to work in a more gradual and supportive way that not only benefitted me but also my sons development in those early years. Even now I can drop him at school in the morning and head to work – something I would never have been able to do as a teacher.

“I think it’s important to note that our small business is not only part owned/run by a woman, but also supports other female led and inclusive businesses – we work alongside 3 cleaning companies whose staff and owners are predominantly women and 4 other agencies with women at the helm. Women supporting women is the keystone to our industry. 

“The proposed legislation is overwhelmingly concerning for our business and its viability moving forward.  

“I have always felt that the most appropriate course of action would be an online portal where applications are made with the relevant safety certification attached. Once a license is agreed there should be a system where complaints can be logged – therefore properties are safe and problem flats can be recognised and removed. No one should face problems in their homes due to any kind of letting and unsafe properties are a risk to everyone – this is what needs action, not a full blown attack on professionals who work incredibly hard to ensure all parties are happy. I am a confident and capable woman but I will admit that the behaviour of anti-holiday let groups has left me feeling on edge at times, there is a tension in the air that is unsettling and the only way to stop the threat of vigilantes is to have an appropriate scheme in place. 

“I come from a long line of women in business and I am proud to be a director of Harpers Concierge Services.”

Case Study 4

“I set up the short term lets side of Dickins in 1998. My mother had set up our long term letting business in 1988. I’ve always been proud to run a women led family business. My company has established an excellent reputation. We’re trusted by neighbours as a safe pair of hands too. 

I employ 4 women. Two are single mothers – one has an autistic daughter. 

“I’m the main bread winner in our family. I’m 53 and have been doing this job for 23 years. I have two young children and definitely need to keep working. I have no idea what I’d do if I needed to create a new way of earning my living. I don’t have an asset I can sell as obviously my business would be considered to be worthless. It truly does beggar belief. During Covid my husband and I drew £1,500/month from the business so that we could keep the business afloat and staff employed. The idea that coming out of that terrible period for business, we’re now in a head on fight for the life of our business with the Scottish Government and Edinburgh Council beggars belief too. The flippant way in which Adam McVey says we’ll have to get a new job or liquidate our assets feels unbelievable.

“Dickins does an excellent job of marketing Edinburgh. We have excellent social media and write a great blog celebrating the city and local businesses. It’s beyond depressing that our own council doesn’t begin to recognize the important role we play in the life of the city.

 “Most of the housekeepers we use are women too.”

Case Study 5

“I am the Marketing Director of Bookster, which is an Edinburgh-based property management system which has been supporting holiday rental managers for 10+ years. 

“Our clients range from professional individuals to agencies and as a company we have supported and encouraged the professional growth of the industry. 

“For our Edinburgh based clients, this legislation feels very heavy-handed in its approach. There are a minority of unprofessional players which need to be addressed, however this legislation is effectively closing the industry based on that minority, rather than working with the local associations to resolve the problems. 

“I have two major concerns relating to this legislation. The first is damage to the economic revenue which is generated by this industry which will have a ripple effect across the communities.  

I’m also worried about the damage to the livelihoods of holiday rental professionals which includes many supporting industries, from cleaners, concierges, software providers, bedding and linen suppliers, maintenance employees, and welcome basket providers.”

Case Study 6

 I am the owner of an award-winning Scottish Holiday let Agency and have devoted 15 years of my life to self-catering.  I have a Masters Degree in Psychology but having previous experience in the tourism Industry and in between jobs, I chose to start a business in an industry I love and that is promoting our lovely country and welcoming guests to Scotland.  I love the personal touch that self-catering embodies. I also chose to start my own business in this industry because I saw opportunities and it gave me flexibility and the ability to raise a family.  The first apartment I managed I did everything from the cleaning to processing the bookings as many operators do – it’s hard work.  

 “I have had the fortune to meet many amazing people over the years, complete leadership training, join a tourism board and mentor young women coming up in the tourism industry all because of this amazing industry.

 “I believe that women will be detrimentally affected if this legislation goes ahead as is.  This is because the majority of people I have met in this industry (from cleaners to Property Managers have been women).  I currently employ 3 women and the majority of my employees have been women.

“This proposed piece of legislation will throw the baby out with the bathwater and not achieve anything other than take away accommodation offerings to guests (hotels are not self-catering) and close down professional businesses and livelihoods.  The ASSC has offered a viable solution to the issues surrounding self-catering raised by the Scottish Government and others.  Why, why, why won’t the government listen?

“We are hard working and relatively low paid workers in the tourism industry and do not deserve to be treated like this. It is shocking that politicians have suggested that we can liquidise our assets – I have no assets as like many others, I am in the service industry.  

“This industry is composed of many people/companies with differing skills and backgrounds (from tech to marketing) and is not the cliche that the media purports, simply full  of property tycoons taking over all the housing stock and out for a quick buck!  

“I am sick with worry and fed up being sick with worry after the pandemic.  If the Scottish government goes ahead with this, Scotland will simply lose out:

  • Lose out on the huge contribution that self catering gives to the Tourism industry.  
  • Lose out on investment as it is a highly entrepreneurial and innovative industry.
  • Lose properties sitting as second homes being used to generate money into the economy.  They will sit empty
  • Lose opportunities for women and startups           
  • Lose entrepreneurial talent – they will move elsewhere
  • Lose Visitors – our guests come back to us again and again as they know and trust us

“I will have to retrain in my 40s and my business (pension) will be worthless.  All the VAT, NIC and PAYE my business has contributed seem to mean nothing… I have pride in what I have achieved and what I have contributed to society.  If I retrain I will not start another business employing people; our government does not value small, Scottish businesses.  

“Big business (many multinationals) will benefit from this legislation I am sure but our visitors and local population will not.”

Case Study 7

“I started looking for a way to financially support myself when it became clear that my long-term health issues weren’t going away (I have fibromyalgia and an inoperable herniated disc.  Neither will heal or go away; they’re here for life).  I wanted to do something I enjoyed, something I’m good at, and also something that made other people happy.  I’m Edinburgh born and raised; this city is my first love and, even in my early forties, I still roam the streets and marvel at this stunning city I’m lucky enough to call home.

“I worked in financial services (primarily in mortgages) for around 12 years; I had a number of different roles over the years, yet my favourite part of every role was the same: the conversations I had with customers.  I loved speaking with them, tailoring the service to meet their needs, and seeing them happy with the service I provided.  I made their house purchase (which can often be seen as stressful and challenging) smooth and exciting…which is exactly as it should be; people should be excited and not stressed about buying a new house!

“I was made redundant around the same time my health began to decline further, and so I considered “how can I combine my love for Edinburgh with seeing happy customers?  How can I make a difference to people?  Wouldn’t it be wonderful if others could see Edinburgh through my eyes; through the eyes of a local?” And so, after around 2 years of research, and looking for the perfect property which met my long list requirements (it had to be on the ground floor, no neighbours through the walls, not on a busy road, in a factored property/development, and it also had to have private residents’ parking; hard to find in Edinburgh, yet I waited patiently to find the right property), I bought my first apartment in 2014.

“I bought the property with my parents as a means of providing me with an income, as well as supporting my parents in their retirement. It wasn’t long before the amazing reviews started, and I realised that I truly was providing my guests with a wonderful, family-friendly property, as well as a traditional, warm Scottish welcome (and a formidable service before, during, and after their stay).  I also noticed that many of my guests mentioned the same thing: how wonderful I was as an owner, and how helpful my many recommendations and advice had been when planning their stay here.  My parents and I set up another business and bought our second property in 2016, which also welcomes guests from all over the world (and also meets the exact same list of “must haves” I had when looking for my first property).

“Upon booking, I don’t e-mail my guests the address, a keycode, and a map of how to find the nearest Starbucks, ATM, and supermarket.  Instead, I provide recommendations, meet them on arrival, and help them get their bearings before they venture off out into this great city to explore.  I tell them where all the amazing, independent shops, cafes, restaurants, and gift shops are (and tell them where all our “hidden gems” are; things you won’t find in a guidebook, or referred to much online).  I recommend places I know to be wonderful, because I’ve been there myself.  As a self-catering owner, I’ve been actively involved in the planning of surprise 80th birthday breaks, wedding anniversary celebrations, family reunions, honeymoons, and even a wedding proposal.  I’m on hand to take delivery of made-to-order cakes, food deliveries ahead of guests’ arrival, and arrange dinner reservations and outings for them.  My satisfied guests return again and again, and recommend me to friends and family, as well; I’ve been blessed to see guests’ children become young adults over the years they’ve returned.  My guests come to Edinburgh and spend a lot of money enjoying all the fabulous sights and activities we have to offer as a city, and they support the countless small businesses that depend on tourism to survive.

“My business does all of that!  I do all of that, and it makes a difference.  I work long hours to manage my 2 properties, and also to support my community whilst providing an exceptional service at both of my wonderful properties. 

“If the proposed licensing scheme is introduced as currently planned, I will likely not be granted a license.  Both my properties are in shared stairwells and the City of Edinburgh council have already stated that properties in tenements/shared stairs will be declined on application.  This will result in the closure of a huge proportion of the self-catering properties in the city.  I will be forced to close both properties.  Although the massive impact this will have on my home, my family, and my life are immeasurable, I’m currently undertaking the painful, stressful, and deeply upsetting process of planning my “exit strategy”.

“This is already having a detrimental effect on my health; there’s only so much stress and worry a person can take before it spills over from being a mental health issue to a physical health issue.  The idea that I’ll likely be forced to demolish something I’ve spent so many years of my life building is devastating.

“I have not yet found another feasible option for how to provide an income for myself or support my parents in their retirement.  No other option that involves keeping the properties will provide us with much in the way of income once overheads are paid.  Selling the properties that took us years of hard work to save for, to buy, and to renovate will be subject to capital gains tax, and what money remains afterwards will not yield adequate income for us to survive on if placed into a bank account.

“Although I am still searching for alternatives, I do not yet know what I will do if forced to close.

“I am deeply saddened that the Scottish Government and the City of Edinburgh Council do not care enough about small businesses like mine; a small business that has spent so many years supporting local businesses, helping the tourism sector, and having a positive impact on my local community.”

Case Study 8

 “As a 70+ year old woman in the business of short term lets, who has worked hard all my life, paid taxes, adhered to all the rules and regulations life has bestowed upon me, I am finally forced to make a stand at the unbelievable stupidity of our councillors and politicians at the very thought of introducing a licensing scheme for short stay letting.  At every suggestion and proposition they have made for the reasons behind the introduction of the license, the ASSC have debunked and proved their information is incorrect.  The ASSC have also shown their willingness to work WITH them, and offered an excellent, proportionate, and fair alternative.  However, politicians and councillors are not listening to the very people who voted them in in the first place!  I hoped common sense would prevail, but I am astounded that I am having to fight such an unjust, diabolical proposal at my time of life.  At every turn, the council are bringing up new reasons to close our businesses down by introducing a costly license.  For what cause?  How will it be better, fair, improved, or justified?

“It won’t just affect my family business and have a horrifying impact on my income in retirement; this will affect the tens of thousands of businesses supported by us short term let owners.  Do they want more people in dole queues?

“I take great pride in the service I give in my business, and I am not ready or willing to be suppressed by these idiots trying to be dictators.  What good do they think this will achieve?  There’s no benefit at all!

“If it’s a fight they want…”

If you have a story, you’d like to share, please get in touch.

Footnotes:

[1] https://www.gov.scot/publications/short-term-lets-licensing-scheme-planning-control-areas-consultation-analysis/documents/

[2] https://www.assc.co.uk/policy/covid-19-assc-business-support-surveys-2/

[3] Other responses included three-way partnerships, 70/30 female/male, whole business 50/50 but self-catering element female

[4] Data direct from Airbnb

Scottish Government Changes to Short-Term Let Licensing Legislation and Guidance

This morning, the Cabinet Secretary for Social Justice, Housing and Local Government Shona Robison has written to the Scottish Government’s Local Government, Housing and Planning Committee setting out changes to their short-term let licensing legislation and guidance. The changes to licensing will be in the following areas:

  • Removing overprovision powers
  • Simplifying publicity and notifications
  • Adding an appeal for temporary exemptions
  • Reducing public liability insurance requirements
  • Focused use of inspections
  • Stronger guidance on fees
  • Facilitating home sharing and bed and breakfast
  • Removing natural names from the public register.

It remains the intention of the Scottish Government to lay the Licensing Order before parliament in November and also publish a revised BRIA. A full copy of the Cabinet Secretary’s letter to the Committee can be accessed here:https://www.gov.scot/publications/short-term-lets-licensing-order-update-letter-from-cabinet-secretary-LGHP-committee/

As you know, the ASSC has expressed numerous concerns with the Scottish Government’s proposed regulations and significant concerns remain despite today’s announcement. This includes but is not limited to: the level of licensing fees, license duration and renewal policy, and the competency of the regulations. Taken together, the licensing scheme proposals at national level and the planning control areas at a local council level are creating a perfect storm of uncertainty for small business.

Nevertheless, we welcome the decision to remove overprovision powers from the licensing regime, as well as the Cabinet Secretary’s willingness to engage constructively with us. Regulatory discussions remain ongoing and we will continue to fight your corner with policymakers and keep you informed of the latest developments. We are extremely grateful to all those who have articulated their concerns to MSPs and we would encourage you to keep doing so.

The ASSC has always taken a proactive and responsible approach to regulation and has presented a wealth of evidence and data to the Scottish Government to help inform their proposals. We maintain that our proposals for an exemption for registered accommodation would meet the policy objectives of the Scottish Government in a more targeted, cost-effective and proportionate manner.

Small businesses will be unfairly and disproportionately impacted by short-term let licensing at a time when they can least afford it and when the country needs to focus on Covid recovery. In the weeks ahead, we want to work collaboratively with the Scottish Government and MSPs to address our outstanding concerns in order to protect livelihoods in Scotland’s £867m self-catering sector.

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

“The ASSC welcomes that the Cabinet Secretary for Housing has constructively engaged with us and is listening to our members concerns. Specifically, we endorse the decision to remove overprovision from the licensing regime, which was a duplication with planning policy. This recognises that the government’s objective with the regulations was about ensuring health and safety across all short-term lets, not addressing housing issues.”

“However, the devil is in the detail and conversations remain ongoing. A number of important industry concerns remain, most notably the disproportionate financial impact of licensing fees on small and micro tourism accommodation businesses who are still in survival mode due to the crippling effects of the pandemic.”

“We stand ready to work with the government to get the details of the legislation and guidance absolutely right. At this crucial stage of Covid recovery, we must work collaboratively to protect Scotland’s £867m self-catering industry and not burden small businesses who do so much to promote and enhance the country’s unique tourism offering and boost local economies.”

Chief executive of Scottish Land & Estates, Sarah-Jane Laing, said:

“We welcome news that the Scottish Government has taken on board the collective call of stakeholders including SLE to have a serious reassessment of its short-term lets proposals.

“We have been very concerned that an unaltered draft licensing order would have a catastrophic impact on short-term accommodation and businesses across rural Scotland.

“The fact that the Scottish Government received over 1000 consultation responses and the Local Government, Housing and Planning Committee recently launched its own consultation a month before the legislation was due to be laid before in parliament shows the strength of feeling on this issue.

“Today demonstrates that the Scottish Government is willing to listen and act on concerns. We recognise that there are real issues in some parts of the country and a proportionate response is needed, which this looks to be. As a continuing member of the short-term lets stakeholder group, we are determined to work with the Scottish Government to find a workable solution for all; a licensing order that allows proper enforcement of existing health and safety standards as well as appropriate planning policy which prioritises housing development for residential use without excessive bureaucracy and spiralling costs.

“I will be meeting the cabinet secretary later this month and I look forward to discussing these updated proposals in greater detail and ensuring they meet rural needs.”

The UK Short Term Accommodation Association, which represents many of the bigger short-let providers, said:

“The STAA welcomes the decision by the Scottish Government to reconsider some aspects of its proposed licensing regime.

“Throughout the engagement process for these proposed regulations, which has been ongoing for a number of years, we have suggested practical and pragmatic improvements to the legislation which we believe will help to strike the right balance between protecting communities and allowing legitimate businesses to operate as they have always done. 

“We believe that the changes that the Scottish Government has announced today are a positive step in the right direction, although we will continue to push for further improvements for our members, including a grandfathering provision and auto-renewals of licences. We look forward to continued engagement in Scotland, to build the best set of regulations that we can for all.”

Media Coverage:

Scottish Housing News, SLE welcomes ‘proportionate response’ to short-term lets licensing concerns, 11/10/21

Letting Agent Today, Government backs away from stricter regulation of Airbnb and short lets, 11/10/21

Times, Airbnb curbs to be dropped from licensing scheme, 09/10/21

Daily Business, Airbnb controls axed from licensing scheme, 09/10/21

STV, ‘Pragmatic’ changes made to licensing for Airbnb-style lets, 08/10/21

Scottish Housing News, ‘Pragmatic changes’ outlined to short-term lets licensing scheme, 08/10/21

Scotsman, ‘Pragmatic and significant’ changes to licensing scheme for short term lets, 08/10/21

Herald, Airbnb: Scottish Government makes changes to short term lets licensing, 08/10/21

Holyrood, Scottish Government scraps ‘overprovision’ powers in holiday lets licensing scheme, 08/10/21

National, Short-term lets: ‘Pragmatic’ changes to be made to Scottish licences, 08/10/21

Farmers Weekly, Scottish licensing plans for holiday lets to be revised, 12/10/21

STL Licensing Compromise: Proposed Exemption for Registered Accommodation

Short-Term Let Regulation: The Issue

  • Short-term let regulation was a contentious issue for policymakers over the course of the last parliament and the debate has extended into the new session.
  • The Scottish Government settled on licensing as their preferred means to regulate but were forced to withdraw their Licensing Order in February 2021 as it was widely recognised as unfit for purpose, entailing unintended consequences for self-catering and B&Bs. This withdrawal, and the formation of the Working Group to address stakeholder concerns, was welcomed by industry. However, contrary to commitments made, the Working Group failed to live up to its remit – this necessitated four tourist organisations resigning their membership – and the original licensing proposals were simply restated with a few amendments that, if anything, make the plans worse.
  • The ASSC believes this is a complex and multi-faceted problem with no easy answers. We also believe that the aspiration that debate should centre on the facts rather than ‘ill- founded fears’. Unfortunately, the More Homes Division of the Scottish Government has not focused on the considerable evidence provided by self-catering and bed and breakfast businesses.
  • Following the close of the third short-term let consultation, the Scottish Government said they would delay the laying of their new Licensing Order until November 2021, meaning that there is time to work together to ensure what is taken forward is balanced, evidence-based, proportionate, and fair.

Short-Term Let Regulation: The Problem

  • There is agreement from nearly all stakeholders about the need for some form of regulation, just not on what form this should take. Despite the years of discussion, there is still uncertainty about what the Scottish Government are seeking to achieve through their legislation. While meaning to focus on health and safety, it has widened to include issues like housing and anti-social behaviour:
  • If it is about health and safety – this can be addressed through our exemption proposal.
  • If it is about anti-social behaviour – enforce existing legislation such as the Antisocial Behaviour Notices (Houses Used for Holiday Purposes) (Scotland) Order 2011.
  • If it is about housing – introduce short-term let control zones using Planning Act regulations and empirical data to underpin any proposals.
  • Moreover, there remains a lack of understanding of what makes up the short-term letting landscape. The current approach does not properly distinguish between full-time professional businesses and amateur operators. Professionals, like those engaged in self-catering, have been a longstanding presence in Scotland for decades, especially rural/remote communities. However, the rapid development of the collaborative economy resulted in a proliferation of new operators, many of which are unaware of the legislation designed to ensure the safety of tourism accommodation and are outside the inspection regimes of enforcement bodies.
  • Professional self-caterers and B&B owners will still be captured by the onerous ‘revised’ Scottish Government regulations, devised to respond to concerns predominantly found in urban areas over party-flats and amateur operators utilising marketing platforms (i.e., Airbnb and Booking.com).
  • Nearly half of self-catering operators will quit should the current licensing plans come into force, thereby harming Scotland’s renowned tourism offering. With expensive licensing fees of £1,000+, it will entail a materially negative impact for small business at a time when they should be supported for a sustainable recovery.[1]

Short-Term Let Regulation: The Solution

  • There is a need for an effective and proportionate regulatory framework to enable small tourism businesses to recover from Covid-19, providing the correct balance between supporting a £867m self-catering industry[2] and responding to community concerns in some parts of Scotland.
  • The ASSC is not averse to regulation – it has led the way in promoting policy recommendations to the Scottish Government – and the industry wants to work with policymakers to make these regulations work for all affected stakeholders.
  • The ASSC believes all operators providing tourism accommodation should: provide customers with accommodation that is safe; comply with all regulatory requirements in accordance with the principle of proportionality; and pay all due taxes.
  • The Scottish Government are clear they are wedded to the concept of licensing, but industry proposals will allow them to introduce a licensing regime yet at the same time also mitigate the impact for professional operators who already play by the rules in terms of legal compliance, and work within a Code of Conduct.
  • The ASSC’s proposals help make the crucial distinction between bona fide businesses like self-catering, who have been a mainstay of the tourist offering in Scotland for decades, and amateur operators facilitated by online platforms; and will also deal with the worst excesses of the latter who cause the most disruption for residents and who are insufficiently regulated.
  • It supports minimum quality standards for the industry, based on existing H&S legislation, assures properties are safe and compliant and removes the uncertainty of licences being refused or revoked, whilst properly focusing attention on irresponsible behaviour management.
  • We suggest a review of entire the regulatory framework after 12 months. This will offer opportunities for changes and amendments.

How Would This Work?

  • The ASSC’s proposal allows for a suitable compromise between differing positions: the Scottish Government can introduce licensing but exclude registered accommodation. Rather than scrapping licensing altogether, Article 3(1) of the Order[3] could be amended to provide that an activity is exempt from the licence requirement if it is in respect of “registered accommodation” and the “registration conditions” (essentially the existing mandatory licensing conditions) are being complied with.
  • This would have the effect of providing a robust and legally effective regulatory regime – if an owner fails to register or having registered fails to comply with the mandatory conditions, they would no longer be exempt from the licensing requirement and would therefore be in breach of the Licensing Order with resulting legal penalties.
  • A register could be introduced via the Development of Tourism Act 1969. Legitimate businesses, identified by criteria recognised by the Scottish Government could register and become exempt, thus avoiding business closures and harmful knock-on effects.
  • The ASSC have suggested that VisitScotland could deliver the register. However, this could also be taken on by councils to introduce local schemes if policymakers regard that as more appropriate.
  • The setup of the Register would require one off establishment funding. Subsequent running costs can be best and easily raised through an annual registration fee.
  • The core of the register is the creation of an on-line database platform, an online website and interactive access to key facilitators to capture data and other inputs. The data will measure the effectiveness of the regulation and guide future amendments.
  • This approach recognises the Scottish Government’s intention to regulate short-term lets but achieves the same policy objectives in a more proportionate and cost-effective manner for those already complying with the proposed mandatory licensing conditions.
  • The ASSC has recommended such a register since 2017 and is disappointed that the suggestion has been ignored. We are keen for the establishment of a register for professional operators to be delivered as soon as practicable possible, in advance of licensing legislation being introduced.
  • The ASSC introduced the Scottish Tourism Accommodation Register (STAR)[4] in February 2021 to evidence how a Register could work, and to gauge appetite from operators, which was extremely positive.

Other Benefits the Register could Deliver
It becomes the instrument which owners and managers can utilise to make a formal declaration that they are operating within existing legal compliance, and adhering to the industry Code of Conduct. In this respect ‘Registration’ offers far reaching benefits:

  • Guest confidence that the property is genuine and offered legitimately – Guest and community confidence that the property meets industry standards of safety, compliance and quality
  • Community confidence that irresponsible owners, operators (and guests) can be targeted and excluded
  • Ensures industry participants are professional and compliant.
  • Evolve standards, industry recognition, self-fulfilling operator pride.
  • A Registration Mark could be developed as a badge of confidence and standing.
  • Local Authorities and VisitScotland could have access to same data, but reduce the administrative burden of inspection and enforcement (eg 18,000 SCUs on NDR).
  • Fast track exclusion of second homes from NDR and Small Business Bonus Scheme.
  • Assist Assessors with NDR data as part of the annual declaration (see Annex B).

Audit and Verification Processes

  • Accuracy of data and evidence of compliance can be assured using technology that is common today via a relatively simple proactive online process, akin to the Landlords Register.
  • Registrants would be required to certify details and property compliance, and upload key source documents (Rates Notice, Insurance Policy, etc) completing the declaration and issuing a Registration ID with an online payment. Most key information could be verified automatically.
  • VisitScotland and Local Authorities can use the same technology stack to offer a centralised database, in order to inform future investment and resource.

Identification of properties could be clear:
VSNDR/CT + LA ref + unique code of property (Registered Accommodation)
LANDR/CT + LA ref + unique code of property (Licenced Accommodation)

The ASSC Exemption: Benefits for Stakeholders

Benefits for Stakeholders

Overall, the exemption proposal assures the appropriate regulatory balance, providing the following benefits for government, professional and amateur operators, tourists, and local communities.

  • Scottish Government: addresses the key concern of ensuring mandatory health and safety and providing publicly accessible information ownership.
  • Local Councils: reduces the cost of administering businesses who are already compliant and can provide the data required by councils considering introducing a short-term let control zone.
  • Scottish Assessors: Assist with Non-domestic Rates Revaluation and exclusion of second homes in Small Business Bonus Scheme with accurate, up to date data.
  • Traditional Businesses: minimises the burden for hard-pressed self-catering and B&B operators, already compliant with existing regulations, in a way that does not inhibit their Covid-19 recovery.
  • Amateur Operators: raises standards across the short-term let landscape, nudging individuals to adhere to health and safety standards, while incurring stiff penalties for those who do not.
  • Tourists: continues to allow visitors to continue to enjoy Scotland’s unique hospitality and diversity of accommodation, while maintaining standards and quality.
  • Communities: enables professional operators to provide a badly needed economic boost to local economies, while also dealing with negligent or rogue operators.

Footnotes

[1] A Society of Local Authority Lawyers & Administrators in Scotland representative on the Working Group noted the scheme would have to run on a cost recovery basis and could cost in the region of £1,500-£2,000 per licence, way above the £223-337 suggested by the BRIA.

[2] For further details, see: https://www.assc.co.uk/wp-content/uploads/2021/08/Economic-Impact-Study-%E2%80%93Scotland-Report.pdf

[3] The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2021.

[4] https://www.assc.co.uk/policy/scotlands-tourism-accommodation-register-star/