Six month delay to Scottish short-term lets licensing scheme

  • Published
suitcases at doorImage source, PA Media

The deadline by which hosts of short-term lets in Scotland need to get a licence has been delayed by six months.

The scheme, which could see fines of up to £2,500 imposed on people who rent out property without permission, was set up by the government in October.

It is aimed at reducing the impact of Airbnb-style lets on local communities and the availability of housing.

Hosts had until 31 March 2023 to apply for a licence, but this has now been pushed back until the start of October.

Housing Secretary Shona Robison said the "one-off" extension was agreed due to the impact of the cost-of-living crisis, but stressed that hosts should continue to apply.

Hospitality groups had raised concerns about the impact of the proposals on the tourism sector, particularly over the summer in Edinburgh when many people travel to the city for the annual festivals.

The licensing scheme was set up in a bid to ensure consistent safety standards across short-term lets, as well as making sure hosts are fit and proper people and giving councils more control over the number of rentals.

Some areas, such as Edinburgh and the Highlands, see a large number of properties let out on a short-term basis, leading to concerns about a lack of housing for permanent residents and some complaints about anti-social behaviour and noise.

Image source, PA Media
Image caption,

Companies such as Airbnb have met with opposition from some residents in Edinburgh

Applications to the scheme - which are handled by local authorities - were opened in October, and new hosts have to obtain a licence before they can operate a rental.

Existing hosts were given a deadline of 31 March 2023 to apply, but Ms Robison confirmed in a letter to Holyrood's housing committee that this has now been pushed back to 30 September.

She said: "This is a one-off six month extension, which recognises the wider economic circumstances of the cost-of-living crisis that is placing pressure on existing short-term let hosts and businesses.

"This is not a pause and we encourage hosts to continue to apply throughout this period. It will not make any changes in our primary aim of ensuring all short-term lets across Scotland meet consistent safety standards and are provided by fit and proper people."

'Ongoing concern'

The Association of Scotland's Self-Caterers welcomed the move.

Chief executive Fiona Campbell said: "The ASSC has been pressing hard for a pause to the implementation of the scheme due to the cost-of-living crisis so it's good to know our voices are being heard.

"Our ongoing concern however is that it is not long enough to give our members the breathing space they need to get their licence applications approved in the current climate."

The UK Short Term Accommodation Association (STAA) said the scheme could have a damaging effect on Scotland's tourism economy.

CEO Andy Fenner said: "We are pleased that the Scottish government has made its decision for a six month delay.

"We have heard from the likes of the Edinburgh Festival that its future could be severely compromised because this licensing scheme will effectively limit the amount of accommodation on offer."

Councils also have a separate power to set up short-term rental control zones, where hosts would need to get planning permission in order to let out a property.