Short-term lets…The reality facing Scotland
In this blog, our Policy Adviser (Access and Visitor Management), Simon Ovenden, shares his frustrations relating to the Scottish Government’s Short Term Lets (STL) licensing legislation and the potential damage awaiting not just the short-term lets sector in Scotland, but potentially the whole tourism offering across Scotland.
I need to get this off my chest, so bear with me.
Here we are, just two working days before the implosion of our tourism offer in Scotland potentially begins. The new Short Term Lets (STL) licensing legislation has been a staggering piece of work by the Scottish Government, with their stated aim of being to ensure that safety standards are being consistently met by accommodation hosts and operators.
No, wait a minute… they said it’s to tackle the number of second homes across Scotland, despite the Scottish Government’s recent independent research which showed this number has reduced by over 40% in the last decade.
Another quick change of direction and the rationale for the legislation today is to return properties to the long-term rental sector, despite there being an estimated 45,000 empty local authority residential properties across Scotland that are unfit for habitation. This number represents a significant proportion of long-term (over six months duration) empty properties in Scotland which has increased by 68.4% says the same research, particularly as landlords are withdrawing from the market due to the existing limitations on being able to evict tenants who aren’t paying their rent or are trashing the property. However, the Scottish Government appear unable to make the connection with this unintended, but not unforeseen consequence of the legislation.
Aside from my slightly flippant take on the very real and desperately worrying situation in play at the moment, through our own and industry communications with the Scottish Government it is apparent there has been a startling level of misleading and at times fictitious claims on this issue. These demonstrate a lack of understanding of the real situation “on the ground” such as the level of fees actually charged by local authorities (some of whom clearly see this as an income generating opportunity), unrealistic additional conditions being introduced and inconsistencies of how the guidance has been interpreted. The recent debate on the matter in the Scottish Parliament was perhaps the low point of this and further highlights an inability or unwillingness by some to understand the sector being regulated.
Licensing applications require the submission of plans and numerous certificates, including those for fixed wiring, portable appliances and other equipment. For remote areas such as the Highlands, there is a significant shortage of professionals who can undertake such tests and provide the necessary paperwork. Some hosts have been on waiting lists for over five months for such tests to be undertaken, and if such paperwork cannot be submitted with their application by 30 September 2023, they will be forced into closure. The Scottish Government are aware of this, but these challenges are falling upon deaf ears.
We know that the majority of supporters for STL licensing have an urban-centric view on the legislation. In Edinburgh hosts who have been operating their STL accommodation for less than 10 years are required to apply for planning permission before they can apply for a STL license. Existing data has shown that of approximately 250 planning applications, only three have been granted, with between 80-90 as yet undecided. This has been highlighted within the industry as an ‘underhand’ method of controlling the number of STL applications that can be submitted, thereby imposing closure of such businesses without the opportunity to even apply for a license.
There is the further problem of private and confidential personal information having to be displayed by hosts at their accommodation. Which seems an unnecessary burden not required of any other business operators.
I could go on with many further examples of how this scheme is so desperately flawed, but time is short, and we need action from the Scottish Government, now.
Those behind the scheme are continuing to wave their big sticks, threatening safe, well run and long-established businesses with fines of £2,500 for non-compliance and enforced closure of their businesses. It’s almost as though they are relishing the prospect!
Industry bodies continue to confirm however that that we are not against appropriate and realistic regulation of short term lets in Scotland. We maintain our position that the existing framework is neither proportionate nor constructive in achieving any of the long-term objectives that supporters of the scheme are seeking. Again, we appeal to the Scottish Government to delay the introduction of this legislation in order that we can discuss our deep concerns for the whole of the tourism industry in Scotland and work together to build a scheme that is both proportionate and appropriate for all. The implication of going ahead without amendment will be tragic for us all.
It was once said the mark of a true leader is listening to those who know the subject best and being willing to amend your plans in order to deliver the best results for all. The much trailed “business re-set” where businesses will be listened to and part of the process of developing policy certainly seems to have failed in this instance. While there has been some discussion, there has been very little action beyond that in terms of understanding the real flaws in this scheme.
Two days and counting to get this right and avert major damage to not just the short-term lets sector north of the border, but potentially the whole tourism offering across Scotland.
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