The Scottish Government has approved new legislation under which all short term let properties must have a license by July 2024.
In line with the new regulations, all local authorities will have until 1st October 2022 to establish a short term lets licensing scheme, and existing hosts and operators will be required to apply for a licence by 1st April 2023.
The cost of establishing and administering a licensing scheme (estimated to be between £214 and £436 for a three-year licence) will be covered from fees set by local authorities.
Managing short term lets “more effectively”
The new legislation was introduced to ensure that short term let properties are safe and to address issues faced by residents and local communities (such as noise and anti-social behaviour), as well as reduce the detrimental impact short term lets might have on housing supply in Scotland’s hotspot 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.
She added: “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.”
More proportionate response?
A number of groups and companies from the Scottish tourism sector warned that the new legislation could jeopardise 17,000 jobs and take almost £1 million a day out of the Scottish economy. They urged the Scottish Government to take a softer approach and adopt a registration scheme instead.
Fiona Campbell, Chief Executive of the Association of Scotland’s Self-Caterers, said: “MSPs have agreed to a piece of legislation that remains unfit for purpose, lacks an evidence base and was more often than not based on groundless fears, anecdote and hearsay. The sector has been used as a convenient scapegoat for wider policy failures by government, especially on housing.”
However, the Housing and Planning Committee argued that “a registration scheme would not give local authorities and Police Scotland the powers they need to tackle antisocial behaviour and criminality associated with some short-term lets,” and voted in favour of the licensing scheme.
Licence applications must be granted by licensing authorities, unless there are grounds for refusal set out in draft Licensing Guidance for Hosts and Operators.
The Scottish Government has committed to working with local authorities to review short term lets activity in hotspot areas in summer 2023 and will decide whether any further measures are required.
