Residents and industry are being encouraged to share their experiences of Edinburgh’s short term lets (STL) licensing.
Available to take part in online until October, the Council has launched a 12-week consultation as part of a planned review of the local policy. This is in line with a decision taken in 2023 that the city’s policy would be reviewed after a year.
The exercise will allow residents, stakeholders and businesses affected by the operation of the scheme to offer comments and feedback, with targeted discussions with resident groups, industry bodies and other key stakeholders also set to take place. This will cover the Council’s approach to secondary letting, temporary exemptions, fees, and the application process.
Regulatory Convener, Councillor Neil Ross, said: “Since we launched Edinburgh’s STL licensing policy in October 2022, we’ve granted over 1500 applications. This is helping to ensure holiday lets are safe and properly regulated in our city.
“We now want to hear how the scheme has impacted the residents and businesses of Edinburgh. The opportunity for everyone to input into how the short term lets licensing scheme is working was a commitment we gave last year and over the coming weeks, we want to hear your views.
“I’m confident this will help us to better understand how people are finding the regulation through licensing of short-term lets in Edinburgh and help inform any future decision making.”
A report highlighting the results and further recommendations will be brought forward in the Autumn.
The following composite motion was passed at the meeting of the City of Edinburgh Council yesterday (Thursday 14 December):
Council:
1) Notes the decision of the Planning Committee on 23 February 2022 to designate the whole of the City of Edinburgh as a short term let (STL) control area, and the decision of 19 April 2023 to amend non-statutory guidance on STLs.
2) Notes that both committee decisions were unanimous, reflecting the strong cross-party consensus on the need to control the numbers of STLs in Edinburgh.
3) Notes the STL (Planning) Judicial Review issued by Lord Braid on Friday 1 December 2023, further notes the briefing note circulated to members on 6 December, and that the Council’s Planning service will consider the implications of the ruling in detail, including considering an appeal.
4) Notes Lord Braid’s finding that the Scottish Parliament did not intend that Section 26B of the Town and Country Planning Act 1997 should have retrospective effect by requiring planning permission to be applied for where a secondary STL was in operation prior to the coming into force of the Short Term Lets Control Area; and that the judgement reduces the whole of the amendment to the ‘Guidance for Businesses’ agreed by Planning Committee on 19 April 2023, including several changes which were outside the specific scope of the judicial review.
5) Notes that the judgement could have significant implications for the council’s approach to effective regulation of STLs.
Council therefore:
6) Agrees to reconvene the STL working group as soon as possible to consider the next steps for effective regulation of the STL sector in Edinburgh following the judgement, and on the practical implications of licensing powers in respect of potential breaches of planning control.
7) Requests that a report come to Planning Committee in one cycle (excluding any special Planning Committees) detailing the implications of the Judicial Review and what outcomes this will have on Short Term Let Planning Policy and the assessment of Short Term Let Planning applications, what implication this may have for the Council’s Short Term Let Licensing Scheme, and potential amendments to the ‘Guidance for Businesses’ which comply with the judgement. This report should also be sent to the Regulatory Committee and the Short Term Lets Working Group for information.
8) Agrees that the Leader of the Council should urgently write to the Minister for Local Government Empowerment and Planning to:
a) seek clarity of the position of the Scottish Government on the principle of retrospectively requiring planning permission for STLs within a control area and,
b) call for an emergency Bill to be introduced to the Scottish Parliament to address the legislative deficiencies in Section 26B, and failing that to consider what changes to primary or secondary legislation or other options might be required so Edinburgh Council can continue with its originally intended approach, as agreed cross-party.
With one month to go until Scotland’s short term lets licence deadline, the Council has reaffirmed its commitment to the scheme and the 1 October start date.
The need for clarity over Edinburgh’s commitment to the scheme followed comments made by council leader Cammy Day where he appeared to support calls for an extension to the deadline.
Notes the deadline of 1 October 2023 for existing landlords to apply for a license for a short term let (STL).
Notes the unanimous decision of all members of the Regulatory Committee on 6 February 2023 to “regret” the Scottish Government’s decision to delay the start date for STL licensing for existing landlords from 1 April to 1 October 2023.
Believes that a proper system of licensing is important to help address the significant issues within the short-term rental market which is why there was such strong cross-party agreement for a robust system of regulation.
Therefore, regrets the comments made by the Council Leader on BBC Radio Scotland on 23 August 2023, which might have led operators to assume or believe that the Council Leader, and by extension the Council, was open to a further extension to the 1 October 2023 start date when no such position has been taken, either by the Regulatory Committee or full Council.
Believes these comments, despite further clarifications, were damaging to the ongoing hard work of officers to encourage landlords to meet the 1 October 2023 start date by suggesting a dilution of this Council’s commitment to the proper and fair regulation of the short term let market in Edinburgh.
Therefore, Council:
Reaffirms its existing commitment to the licensing of short term lets, expresses its opposition to any further extension to the start date for licensing of existing short term let landlords and requests that this position be communicated strongly through the Council’s communications channels.
Agrees that the Council Leader will write to Scottish Ministers to convey that opposition and further welcomes recent comments from the First Minister and the Economy Minister that there will be no further extension to the 1 October start date. Calls on all existing STL operators to ensure they submit a licensing application ahead of the 1 October 2023 start date.
Agrees the outstanding briefing, outlining the state of readiness of the Council to process applications by 1 October 2023, will be circulated to Councillors before the Finance and Resources Committee meeting of 21 September 2023 to align with budget considerations.
In addition, a draft copy of the STL Enforcement report due to be presented to the 2 October Regulatory Committee should be circulated on a confidential basis to all councillors also before 21 September Finance & Resources Committee meeting.
Moved by: Councillor Neil Ross Seconded by: Councillor Susan Rae
The Scottish Government has reminded short-term let operators in Scotland to apply for a licence before the 1 October deadline, highlighting that no application so far has been rejected.
Licensing has been introduced to ensure short-term lets in Scotland are safe and meet consistent quality standards, including having gas certificates and suitable electrical equipment.
Official statistics published today, dating up to 31 March this year, show that across 32 local authorities, no applications submitted for a short-term let licence have been refused.
Housing Minister Paul McLennan said: “Quality short-term let accommodation is vital to Scotland’s tourism sector and wider economy. It aims to protect the reputation of responsible operators and ensure the sector is regulated in line with other accommodation such as hotels and caravan parks, giving guests assurance of consistent safety standards.
“There has been a lead time of almost two years to the October deadline. Official statistics published today cover only up to the end of March and we know many more hosts have applied in recent months.
“Operators can take confidence that local authorities are working pragmatically to support new licensees through the application process – and we can see from the information that no completed applications had been rejected in the period, or since.
“So, I would repeat calls to everyone within the industry to back the scheme and encourage short-term let operators to apply for a licence in good time and before the 1 October deadline.”
Maree McLeod, owner of The Gatehouse in Reay, near Thurso, said: “The licensing scheme will ensure guests know properties like ours are of the highest standard and are compliant with the latest safety regulations.
“I have spent a lot of time and money ensuring our business is of the highest quality. We try our best to do the best. It is therefore pleasing that other short-term lets will be brought to that same level. By doing this, Scotland will become an international leader in this market.
“The process of applying for a short-term let with Highland Council was made easy and straightforward because of the really helpful team there. I would encourage every owner to go through the process of obtaining a licence. It not only marks out the property as a leader in its class, it marks out the owners too.
“Our business has improved through this process.”
Short term let licences last for three years, the average cost of applying is set out below:
Home sharing application median fee range £250 – £390
Secondary let application median fee range £333 – £550
Median fee for a home share let with occupancy of 2 – £257
Median fee for a secondary let with occupancy of 4 – £405
Median fee for a secondary let with occupancy of 6 – £451
Median fee for a secondary let with occupancy of 10 – £518
An average 6 occupancy (often 3 bedroom) property, which required new safety certification, would pay £451 for a licence, which would last for three years, plus around £290 in safety certification and a £59 EPC certificate.
Existing short-term let hosts across Edinburgh have less than two months to submit their application for a licence and new hosts need to obtain a licence before they can start accepting bookings or receiving guests.
• The deadline for existing hosts, anyone who operated a short-term let before 1 October 2022 to apply for their short-term let licence is before 1 October 2023.
• The licensing scheme aims to establish consistent standards of accommodation across Edinburgh benefiting visitors and local communities.
• Existing hosts of short-term let accommodation can continue to let out their accommodation while the council makes a decision about their licence application.
• The licence costs depend on the property location, size, and type of let.
Hosts of short-term let accommodation across Edinburgh are being urged to apply for a licence under Scotland’s short-term let licensing scheme. Edinburgh Council’s licensing scheme is currently in operation.
As well as establishing one consistent standard across Scotland for guests and hosts, the short-term let licensing scheme is being introduced to support the communities within which they operate.
It enables local authorities to effectively address local concerns such as increased congestion and investment in community infrastructure, whilst balancing the associated economic benefits of tourism in the area.
Jordan Mitchell, Director, Short Stay St Andrews, said:“As the largest holiday letting agency in St Andrews and the East Neuk, the initial thought of an application process for short-term letting our 130+ managed properties was a daunting one. However, the application process has been plain sailing once we had all the required safety certifications in place.
“Fife Council has been extremely supportive in its quest to process the applications despite the extra pressure on its systems. I can only recommend applying as soon as possible to give your business plenty of time to adjust to the new Scottish Government requirements.”
Paul & Julie Allan, Ayres Rock Hostel and Campsite, Sanday, said: “It was a huge relief to get things sorted.
“Orkney Island Council licensing team were supportive through the whole process and were a good contact point for information and checking the application was filled out correctly.”
Housing Minister, Paul McLennan said: “Short-term let accommodation plays an important role in Scotland’s economy, supporting our tourism and hospitality sector and allowing tourists and holiday goers somewhere to take them closer to the best Scotland can offer.
“I would like to thank those who have already signed up to the scheme across Edinburgh, bringing assurances to tourists that their safety is paramount and that they have met local guidelines.
“There are less than two months to go until the 1 October deadline and so I would urge anyone who owns short-term let accommodation and has yet to apply to do so as soon as possible to ensure you can still take bookings and welcome guests from far and wide.”
For more information about the licensing scheme, whether your accommodation requires a licence and how to apply visit gov.scot/shorttermlets.
Convener of Regulatory Committee, Neil Ross, said: “The Council was successful in defending large parts of the policy and the Court did not criticise any aspect of the Council’s consultation nor the evidence base which it used to reach its decision. Having reviewed the Court’s decision in detail, the Council has decided not to appeal the ruling.
“We have changed our policy to reflect the decisions reached by the court, which took effect from 13 July, and the date for applying for a licence is 1 October. Existing hosts and operators have until that date to submit an application for a licence.”
Owners of short-term let properties are being urged to apply for a licence under Scotland’s short-term licensing scheme before the 1 October 2023 deadline.
Short-term let hosts must apply for a licence with their relevant local authority before the deadline. Anyone who operated a short-term let before 1 October 2022 can still accept bookings and guests until an application is determined, but must apply before the 1 October 2023 deadline. Owners who started operations after 1 October 2022 cannot begin trading until they receive their licence.
Hosts must apply for a licence with the local authority their property is located and are being urged to check local criteria before making an application.
Local councils’ licensing schemes are in operation across Scotland and many short-term let hosts have already obtained licences.
Housing Minister Paul McLennan said: “Short-term let accommodation plays an important role in Scotland’s economy, supporting our tourism and hospitality sector and allowing tourists and holiday goers somewhere to take them closer to the best that Scotland can offer.
“However, it is also important that there is appropriate regulation in place to ensure the safety of guests, and so that local authorities can make decisions that are right for their local areas. That is why the Scottish Government has introduced the short-term lets licensing scheme.
“I would like to thank those who have already signed up to the scheme, bringing assurances to tourists that their safety is paramount and that they have met local guidelines.
“Visitors coming to Scotland can already expect to see the benefits of properties being licensed and meeting specific standards. Meanwhile, the thousands of short-term let operators who provide a quality service can have the assurance that would-be competitors have to meet licensing standards as well.
“There is only two months to go until the 1 October deadline and so I would urge anyone who owns short-term let accommodation and has yet to apply to do so as soon as possible to ensure you can still take bookings and welcome guests from far and wide.”
Short Stay St Andrews Director Jordan Mitchell said: “As the largest holiday letting agency in St Andrews and the East Neuk, the initial thought of an application process for short-term letting our 130+ managed properties was a daunting one.
“However, the application process has been plain sailing once we had all the required safety certification in place.
“Fife Council has been extremely supportive in its quest to process the applications despite the extra pressure on its systems.
“I can only recommend applying as soon as possible to give your business plenty of time to adjust to the new Scottish Government requirements.”
Owners have until 1 October 2023 to apply for a short-term lets licence, with local authorities required to process applications by 1 October 2024.
All hosts of short-term lets across Edinburgh are legally required to obtain a new short-term let licence from the City of Edinburgh Council. Hosts who were already operating a short-term let before 1 October 2022 have until 1 October this year to apply for a licence.
They can continue to operate whilst their application is being determined. New hosts from 1 October 2022, who wish to set up and operate a short-term let for the first time, are required to apply and obtain a licence before they can accept bookings or receive guests.
The new licence will require hosts to meet a set of mandatory conditions – many of which are already best practice within the sector, or required by existing law. The new legislation introduces mandatory standards for all short-term lets across Scotland.
There are a number of conditions that hosts will need to meet in order to be granted a licence such as displaying an EPC rating on adverts and listings (where applicable), ensuring there are valid buildings and public liability insurance in place for the accommodation, arranging an electrical safety inspection and completing a Legionella risk assessment.
The tourism sector makes a significant contribution to the Scottish economy – in 2019, there were around 17.3 million overnight visitors to Scotland, spending £5.7billion. The legislation ensures that hosts meet the mandatory standards, helping to protect the positive reputation of Scottish hospitality and confidence amongst visitors and local communities.
Hosts will also be required to pay an application fee to obtain a licence, but the fee will typically vary depending on the property location, size and type of let.
Housing Secretary Shona Robison said: “While short-term lets bring benefits to hosts, visitors and the Scottish economy they need to be balanced with the needs of residents and local communities. We are taking action to ensure all short-term lets are safe and local authorities have powers to tackle local issues.
“The principal component of our licensing scheme is a mandatory set of safety standards, which many hosts will already be following as a matter of compliance with existing law or best practice. I encourage those existing hosts that have yet to do so to apply well in advance of the extended deadline to join the growing number of licensed premises in the sector.
“This will not only ensure the safety of guests and the wider community but also help to maintain the reputation of Edinburgh as a welcoming and responsible destination for visitors.”
Councillor Neil Ross, Regulatory Convener at the City of Edinburgh Council, said: “We have around a third of all short-term lets in the country here in Edinburgh.
“The new licensing scheme will not only support those already providing well run holiday lets but will help us address issues including safety and anti-social behaviour which have been having a detrimental effect on residents across the city. This will also help us to improve further the quality of accommodation we offer visitors coming to our Capital city.
“I’d encourage everyone who needs one to sign up for a licence, if they haven’t already done so, to ensure they can continue to operate after 1 October 2023.”
Short-term lets include home-shares (i.e. letting a room in your home out) or anyone who lets their home out while they’re not there (i.e. on holiday). The new regulation also includes the let of entire premises (i.e. full-time, self-catering properties such as holiday cottages) as well as hosts responsible for B&Bs and guest houses.
The new licence is a legal obligation for all hosts, even if they occasionally let out a spare room or sub-let while on holiday for example. Those who fail to acquire a licence will be at risk of being fined up to £2,500 and ineligible to apply for a licence for a year.
Hosts are required to contact their local authority to find out about the specific licensing requirements within the area that their short-term let is located, including fees, any additional conditions and the application process.
For more information about the licensing scheme, whether your accommodation requires a licence and how to apply visit gov.scot/shorttermlets.
Appearing today before the Local Government, Housing and Planning Committee, the Edinburgh Festivals call for the Scottish Parliament and Scottish Government to look again at the inclusion of residents’ personal primary homes in the planned short term lets legislation.
The Festivals welcome plans by the Cabinet Secretary for Social Justice, Housing and Local Government to extend the licensing date for existing hosts, as a valuable opportunity to reconsider how the national framework is being interpreted across the country, and to adjust provisions at the margins to avoid unintended consequences.
Commenting ahead of her Committee appearance, Julia Amour, Director of Festivals Edinburgh said: “Edinburgh’s Festivals are frustrated at the extent of plans to regulate brief stays in residents’ personal primary homes – compared to commercial secondary lets where we understand the need for regulation – especially when the regulatory plans have no apparent regard to the collection of evidence or the assessment of impact.”
Speaking to the Local Government, Housing and Planning Committee this morning, Ms Amour will ask Committee members to note the following:
Personal primary letting (home-sharing or home-letting) is being conflated with the more complex area of commercial secondary letting whereas it needs to be treated differently
Personal primary letting has no effect on the current housing crisis, given that it is simply individuals using their own homes rather than purchasing additional properties
Personal primary letting is being treated similarly to commercial lets, in terms of regulations and costs, having an effect on income opportunities for residents in their own homes during a cost of living crisis
The national regulation scheme excludes certain categories (eg visiting homestay students where arrangements have been approved by an educational institution) and so why not others (eg visiting homestay event workers)
The Committee will also be asked to note that although the Cabinet Secretary has said temporary exemptions of up to six weeks do not need to comply with mandatory and additional licence conditions, the City of Edinburgh Council has decided to apply many such conditions to temporary exemptions for primary letting.
Ms Armour said: “These local interpretations highlight that the provision in the framework for local temporary exemptions is not achieving its intended purpose, and we now have an opportunity to look at this again and apply an exclusion at national level.
“The Edinburgh Festivals are concerned that these developments will be a serious disincentive to city residents who want to open their own homes to guests for a brief period.
“Without the use of primary home lets, the Festivals estimate that 27% of people in the city for August peak season would not be able to find accommodation, with such lets of particular importance to the workers, artists and performers who transform Edinburgh into the world-leading festival city.
“The Edinburgh Festival Fringe Society estimates a third of their programme could be lost in 2024. This contraction would obviously have a negative impact on the 4,000+ jobs and over £200m in direct additional economic impact which the Festivals bring, as well as weakening the wider leisure and visitor economy employing 44,000 in Edinburgh alone.”
Ms Amour will conclude: “We ask the Committee to recommend that Scottish Government consider excluding primary residential letting activity (home-sharing and home-letting) for major festivals and events from the proposed legislation, in the knowledge that such activity has no effect on the housing crisis in the city and will safeguard the major economic, cultural and social opportunities that the festivals provide to city residents and to Scotland as a whole.”
‘Pragmatic approach’ to support hosts during cost of living crisis
Recognising the pressures short-term lets hosts face at this time, legislation has been laid to extend the deadline for applying for a licence by six months to 1st October 2023.
The new deadline applies to anyone operating as a host before 1 October 2022. Anyone who started operating after that must have applied for and obtained a licence before accepting guests and bookings.
Housing Secretary Shona Robison said: “We are taking a pragmatic approach to help support hosts in recognition of the wider cost of living crisis that is placing pressure on businesses. This one-off six-month extension will give businesses more time to spread the cost of the licence fee, and meet the scheme requirements.
“The principal component of our licencing scheme is a mandatory set of safety standards which many hosts will already be meeting as a matter of best practice or compliance with existing law. Our scheme gives local authorities the powers to strike a balance between the economic and tourism benefits of short-term lets and community concerns.
“Many hosts have already applied for a licence. I encourage those that have yet to do so to apply for a licence well in advance of the extended deadline.”
New hosts must now apply for, and obtain, a licence before accepting bookings or receiving guests.
Anyone who operating as a host before 1 October 2022 can operate as normal while their application is being determined.
