short term lets – Page 2 – The NEN

Short-term let hosts across Edinburgh urged to obtain the essential licence ahead of October deadline

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.

Edinburgh Festivals call for exclusion of residents’ homes from short term lets legislation

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.”

More time to apply for short-term lets licences

‘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.

Short term lets: council consults on proposed new planning guidance

The City of Edinburgh Council is consulting on new planning guidance to be used as the Capital became the first short term let control area in Scotland last month.

This followed new Scottish Government legislation in 2021. In a control area, these new laws mean if you offer a flat or a house for a short term let that is not the home you live in, you will need planning permission for it.

Now that Edinburgh is a control area, the Council has updated its proposed guidance and is looking to get views on it from anyone with an interest including residents, those operating short term lets and those involved in the tourism industry, by Thursday, 22 December.

Planning Convener James Dalgleish said: “The control area was put in place in Edinburgh last month. This is a huge step forward in tackling issues caused by short term lets across the city.

“It’s so important that those operating short term let accommodation can only do so if they have planning permission where this is needed. Going forward the control area and guidance will greatly simplify the process and make it clearer how decisions will be made for all involved.

“So, for anyone with an interest in short term lets in Edinburgh please give us your views and help us shape the final version. We aim to have the new guidance in place by 2023.

“Following extensive consultation, we’ve also just agreed the licensing scheme for short term lets in Edinburgh which addresses concerns around the management of secondary letting. When applying for a licence applicants will also have to make sure they have the right planning permission in place.”

Licensing scheme opens for short-term lets

Measures to establish consistent standards across the country

A new licensing scheme for short-term let hosts opens today [1 October], aiming to ensure consistent safety standards while reinforcing the positive reputation of Scottish tourism and hospitality.

The licensing scheme was developed in response to concerns raised by residents about the impact of short-term let properties on their local communities. It gives councils flexibility to develop licensing schemes that meet local needs, and sits alongside powers for councils to establish short-term let control areas.

To comply with the licence, hosts will be required to meet a set of mandatory conditions which apply across Scotland, plus any additional conditions set by their council.

Anyone operating as a host before 1 October has until 1 April 2023 to apply for a licence and can operate until their application has been determined. New hosts must obtain a licence before accepting bookings and welcoming guests to stay.

A targeted digital marketing campaign to promote the licensing scheme also launches today.

Housing Secretary Shona Robison said: “Our new licensing scheme will support responsible operators and give guests the confidence that their short-term let – be it a flat in Edinburgh, a property for a business trip to the Borders, or a cottage in the Highlands – meets the same set of safety standards.

“These new conditions include measures such as displaying an energy performance rating on listings, or securing valid buildings and public liability insurance. We know the vast majority of short-term lets businesses are already following these safety standards as a matter of best practice, and some are already required by existing legislation.

“We know short-term lets make a positive contribution to Scotland’s tourism industry and local economies, and these measures will allow them to continue doing just that while ensuring this is balanced with the needs of local residents and communities.

“The deadline for applications from existing hosts is 1 April, and I would urge all hosts and operators to contact your local authority as early as possible to learn how to apply.”

Malcolm Roughead, CEO at VisitScotland, said: “The small accommodation sector is a key contributor to the economy and our high-quality and varied offering is one of the things that makes Scotland such a special destination.

“Through an Industry Advisory Group, we’ve been working closely with representatives from across the sector ahead of introduction of the licensing schemes.

“We’ll continue to give both new and established businesses the right advice to help them through the process of applying for a short-term let licence.”

Controlling the Capital’s short-term lets

Planning permission required for Edinburgh’s short-term let conversions

A measure to help maintain the availability of long-term residential housing in Edinburgh has been approved.

Edinburgh will become Scotland’s first designated Short-Term Let Control Area after the Scottish Government approved the City of Edinburgh Council’s proposed change to planning requirements.

The control area is intended to preserve the character of neighbourhoods, prevent short-term lets in inappropriate places or types of building, and help ensure homes are used to their best effect. With a few exceptions, changing the use of an entire residential home in the city to short-term letting will automatically require planning permission.

Housing Secretary Shona Robison said: “Edinburgh was the first local authority in Scotland to propose a Short-Term Let Control Area and Scottish Government approval represents a major step forward.

“We have committed to give local authorities the powers to address concerns about the impact of commercial short-term letting in their communities, should they want to do that. This is an example of that local choice in action – supported by the majority of respondents to the council’s consultation on the proposed designation.

“I recognise the important role which short-term lets play as a source of flexible and responsive accommodation for tourists and workers, which brings many benefits to hosts, visitors and our economy. However, we know that in certain areas, particularly tourist hot spots, high numbers of lets can cause problems for neighbours and make it harder for people to find homes to live in.

“The Scottish Government considers that the council has adequately considered and responded to concerns raised before seeking approval of the control area designation. We have concluded that the proposed designation would be reasonable.”

Leith MSP Ben McPherson said: “As a constituency MSP, after being part of an Edinburgh SNP team who have pushed for action on this for some time, I’m pleased that today it has been confirmed by The Scottish Government that Edinburgh will become Scotland’s first designated Short-Term Let Control Area.

“Planning permission will be required for Edinburgh’s short-term let conversions. This measure will help maintain the availability of long-term residential housing in Edinburgh.”

City Council Leader Cammy Day said: “This is the news we have been waiting for after leading the way in campaigning for change. I am delighted that Ministers have answered our calls and we look forward to reviewing the full details included in the decision released today.

“It paves the way for Edinburgh becoming the first short-term let control area in Scotland. For far too long, too many homes have been lost in our city to the holiday market. In fact, around a third of all short term lets in Scotland are here in the Capital, so their associated issues of safety, anti-social behaviour and noise have a detrimental effect on many of our residents. We will now progress implementing the changes and the next step should be looking at whether we can apply a cap on numbers, too.”

The control area covers the entire City of Edinburgh Council area. Where a dwellinghouse is in a control area, a change of use to secondary letting will always require planning permission unless the exceptions set out in legislation apply.

Where the change of a dwellinghouse to a short-term let took place before the designation of the control area the existing planning rules will apply. These require planning permission for a change of use of property where that change is a material change in the use of the property.

Short-term lets: professional advice is ‘the only real safeguard for owners’

As Edinburgh tightens the net on Airbnb-style short-term lets, what are the options for property owners and landlords?

By Calum Allmond

It was always on the cards that if restrictions were to be introduced on short-term letting in Scotland, Edinburgh would be first out of the blocks. And, sure enough, the council last month introduced a city-wide “control zone”.

The capital, which for obvious reasons is the country’s tourist Mecca, has become a magnet for Airbnb-style short-term lets over the last decade, leading to concerns about housing shortages and perceptions about anti-social behaviour.

Under draft proposals which will now go to Scottish Government Ministers for final approval, property owners will soon need planning permission to be able to operate short-term lettings and will have to apply for a change of use certificate from the planning department.

What is less well known is that the council has always had the power to require planning permission in the event of a material change in environment, such as short-term rentals. The difference is that, from now on, this will be mandatory.

It should be noted that the proposals only apply to secondary lettings, i.e., properties which are not an owner’s primary residence. People will still be able to let out their homes while on holiday, or rooms in their home while they remain in residence.

However, while the new restrictions appear to be forging ahead, it still remains unclear what policies the local authority will eventually apply. The current Development Plan – the overarching guide to future council thinking – makes no mention whatsoever of short-term lets.

Nor, surprisingly, does the document designed to replace it, the City Plan 2030, which again does not concern itself with the issue – making it increasingly difficult for property owners to plan ahead.

One can only speculate at the moment about whether permissions will be granted for continued short-term use, and on what grounds. Nor is there any clarity about whether numerical limits will be imposed.

Were there to be limits, it would be reasonable to assume that applications would be allocated on a first-come, first-served basis, so landlords hoping to remain in the market might be advised to act sooner, rather than later.

There is, of course, an existing provision in law whereby if a short-term let has been operating for more than 10 years, with no action against it by the council and no action to conceal its operation, then it is entitled to a Certificate of Lawfulness to continue operation, though necessary evidence will be required.

As of the start of this month, there have been nine applications so far this year for planning permissions for short-term lets, only two of which have been granted – and they both involved Certificates of Lawfulness.

What to do if applications fail is clearly now a matter of immediate concern for property owners and DM Hall’s specialist rural arm Baird Lumsden is currently embarked on an information campaign around the sales, letting and management options which remain open.

It has gone into the issue in depth, in anticipation that Highland Council will be the next authority to impose short-term let restrictions around the Badenoch and Strathspey area, and is reaching out to concerned parties.

Informed and impartial advice of this nature is something of a port in a storm for property owners who are caught between a rock and a hard place as the restriction net tightens.

There has been anecdotal evidence of landlords exiting the short-term market and moving to longer lets in the private rental sector. But regulation in this sphere of activity is getting stricter all the time, and the imminent New Deal for Tenants will do nothing to ease landlord pain.

On a superficial level, it is easy to understand the council’s hope that properties taken out of short-term lets will find their way back into the housing stock, thus easing ongoing shortages.

But a counter-argument, articulated by bodies such as the Association of Scotland’s Self-Caterers, is that lack of house-building is as much of a contributory factor to shortages, and that short-term lets bring in huge volumes of valuable tourism revenue to the city.

As things are, some smaller operators may indeed be forced to sell up and quit the market, although larger letting concerns will almost certainly continue to jump through the necessary hoops.

In this volatile environment, expert professional advice is the only real safeguard, and prudent property owners and landlords will seek it out as timeously as possible.

Calum Allmond is Head of Architectural Services at DM Hall Chartered Surveyors.

For further information, contact DM Hall Chartered Surveyors, 27 Canmore Street, Dunfermline KY12 7NU. T: 01383 621262. E: dunfermline@dmhall.co.uk.

W: www.dmhall.co.uk http://twitter.com/dmhallLLP.

For further information about DM Hall’s nationwide network, please contact:

Caroline Wayte, Marketing Manager

M: 077863 62517

DM Hall, 12 Bothwell Street Glasgow G2 6LU

E: caroline.wayte@dmhall.co.uk

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Scottish Parliament approves short-term lets legislation

Local authorities to set up licensing schemes

All short-term let properties will require a licence to ensure they are safe and the people providing them are suitable, under legislation approved by the Scottish Parliament.

Local authorities will be required to establish a short-term lets licensing scheme by 1 October 2022, and existing hosts and operators will have until 1 April 2023 to apply for a licence.

The legislation was developed in response to concerns raised by residents and communities about the impact of short-term let properties on their local communities, including noise, antisocial behaviour and the impact on the supply of housing in some areas.

Housing Secretary Shona Robison said: “This legislation is a significant milestone on our path to bringing in an effective system of regulating short-term lets.

“Our licensing scheme will allow local authorities and communities to take action to manage issues more effectively, without unduly curtailing the many benefits of short-term lets to hosts, visitors and the economy.

“We have already introduced legislation allowing councils to establish short-term let control areas and manage numbers of short-term lets. This is the next step to delivering a licensing scheme that will ensure short-term lets are safe and that allowing them to continue to make a positive impact on Scotland’s tourism industry and local economies while meeting the needs of local communities.

“This legislation covers the whole of Scotland, including island and rural communities, and offers flexibility to local authorities in how it is implemented based on local needs and concerns.

“We appreciate the input from tourism bodies, local government, community organisations, residents and others in reaching this point.”

Welcoming the announcement, city council leader Adam McVey said: “This is fantastic news for residents. After our call for this legislative change we worked with the Scottish Government as they consulted on this issue and how the details of a licensing scheme would work.

“I’m really pleased all short term lets will now need a licence making them much easier to control not only in terms of overall impact on our housing supply but also help us deal with any anti-social behaviour and noise issues.

“It’ll mean whole properties being let out as short term lets will need to have ‘change of use’ planning permission before they can be granted a licence. This will help to stop homes being taken out of residential use or being let out when they are unsuitable or unsafe.

“In addition to this, councillors will consider a report next month on whether we should apply to the Scottish Government for Edinburgh to become a ‘short term let control area’. Enforcement of planning legislation is a costly and lengthy process. If approved, many properties being used as short term lets would automatically require to have planning permission in place.”

All short-term let properties will require a licence by July 2024.

Short-term lets: Legislation laid before Scottish Parliament

Councils will be given powers to ensure short-term lets are safe and meet the needs of their local communities under legislation laid before the Scottish Parliament.

Under the legislation, all local authorities will be required to establish a short-term lets licensing scheme by October 2022. Existing hosts and operators will have until 1 April 2023 to apply for a licence for each property that they operate as a short-term let. All short-term lets in Scotland will have to be licensed by 1 July 2024.

The legislation was developed after residents across Scotland raised significant concerns about the impact of short-term lets on their communities, including noise, antisocial behaviour and the impact on the supply on housing in some areas.

It will ensure the needs and concerns of communities are balanced with wider economic and tourism interests.

Housing Secretary Shona Robison said: “We have already introduced legislation allowing councils to establish short-term let control areas and manage numbers of short-term lets. This is the next significant step to delivering a licensing scheme that will ensure short-term lets are safe and the people providing them are suitable.

“We want short term lets to continue making a positive impact on Scotland’s tourism industry and local economies while meeting the needs of local communities.

“Short-term lets can offer people a flexible travel option. However, we know that in certain areas, particularly tourist hotspots, high numbers of lets can cause problems for neighbours and make it harder for people to find homes to live in.

“The licensing scheme and control area legislation give councils the powers to take action where they need to.

“We appreciate the input from tourism bodies, local government, community organisations and others in reaching this point, and look forward to delivering a short-term lets licensing scheme that works for Scotland.”

Further information on the Scottish Government’s short-term lets legislation is available online.

Have your say on short term lets

The city council is seeking views on a proposal for Edinburgh to be short term let control area.

A public consultation approved by the Planning Committee on 11 August, will run from Friday 3 September for nine weeks, until 5 November 2021.

If, following the public consultation, the Council gives the go ahead and the proposal is approved by the Scottish Government, the new powers would mean all residential properties, which are not an owner’s principle home, being let as STLs in their totality throughout the local authority area would require approval of a ‘change of use’ to a STL from Planning.

The ‘Choices’ consultation responses for our next local development plan, ‘City Plan 2030’, also showed overwhelming support for the council to look at control areas in the Capital.

Around a third of STLs in Scotland are in Edinburgh. At the moment, in addition to planning applications made for STLs, to establish whether or not planning permission is required for properties where this is disputed, the Council’s enforcement team looks at each case individually, which is a very lengthy and time consuming process.

The introduction of powers to make a control area, follows the Council calling for new legislation to tighten up the control of STLs to help manage high concentrations of secondary letting where it affects the availability of residential housing or the character of a neighbourhood.

Also, it will help to restrict or prevent STLs in places or types of buildings where they are not appropriate as well as making sure homes are used to best effect in their areas.

Generally renting out a room/s in your house or letting your property whilst on holiday would also still be allowed if Edinburgh became a STL control zone.

The Scottish Government is currently consulting on legislation to introduce a new licensing regime next year, which the Council also called for, to address the issues of safety, anti-social behaviour and noise. These issues have all had a detrimental effect on communities as the number of STLs has greatly increased across the city in recent years.

The proposal is that all Scottish councils will have to adopt a STL licensing system by October 2022. In terms of the Government’s proposed new licensing regime, if Edinburgh becomes a control area it will be a mandatory condition of any licensing application to have made a planning application or to have planning permission already when providing accommodation that requires it.

Councillor Neil Gardiner, Planning Convener for the City of Edinburgh Council, said: “We’ve worked hard calling for greater controls for short term lets and so it’s great we’re now asking for your views on the whole city becoming a control area.

“This is a positive step forward as Edinburgh has almost a third of all STLs in Scotland and so we need to take action. They’re putting pressure on house prices and rents and taking houses out of supply as well as causing issues such as anti-social behaviour and the hollowing out of communities.

“We’re really keen to hear views from residents in all communities across the city and the industry and we’ll carefully consider all of the feedback you give us before the proposal is finalised as the impact of STLs can be felt in communities across Edinburgh.”

Councillor Maureen Child, Planning Vice-Convener for the City of Edinburgh Council, said: “If we do proceed with this approach and it’s approved by the Scottish Government, we’ll be better able to manage the number of STLs in the city.

“Many properties being let out in a control area would automatically require to have ‘change of use’ planning permission in place and I’m pleased the Scottish Government is also proposing that when people apply for a licence we can ask for evidence of that.”

To have your say in the consultation visit www.edinburgh.gov.uk/stlcontrol