Licensing of short-term lets - is it a sledgehammer to crack a nut?

30th January 2021

Scottish Housing News.

Scottish Government has been under pressure for a considerable period of time to ‘do something' about the alleged proliferation of short-term lets.

Those calling for restrictions often point to anecdotal instances of antisocial behaviour; a fear of the erosion of community as full time residents are replaced, and increasing house prices forcing buyers out of certain areas. This negative view is by no means universal. Many point to the positive effect of tourism and the greater flexibility short-term lets offer both businesses and leisure visitors, citing the economic benefit derived from the properties and the significant investment by owners in ensuring the properties come up to a high standard in a competitive market place. Indeed the views about the relative merits and demerits of short-term lets varies significantly between local authorities across Scotland.

Matters came to a head last year after a Scottish Government Consultation on a proposed licensing regime, the outcome of which saw a decision taken to move forward with the introduction of a new mandatory licensing system for short-term lets.

The Government decided against making the regime optional for local authorities, citing the need for uniformity in relation to standards of safety. This came as a disappointment to many local leaders who hoped to be empowered to balance the needs and concerns of their communities. The chairman of tourism body SkyeConnect said that short-term lets licensing legislation would be "hugely onerous to microbusinesses in Skye and right across Scotland." The industry has also raised concerns, with the Association of Scotland's Self Caterers saying up to half of their members would leave the industry as a result of the new scheme.

The draft regulations known as the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2021, were published at the turn of the year and the Government is receiving feedback on the technical aspects of the order. This regime won't come into force overnight, with the deadline for licence applications set for 1 April 2023. In part this takes recognition of the pandemic but also the impact that processing thousands of applications and undertaking related inspections will have on local authority resource, as well as the cost to property owners in achieving compliance.

This therefore begs question - what will this new regime look like for owners?

Read the full article HERE