A new licensing scheme for short-term rentals in Edinburgh could result in an 80% reduction in properties available on platforms such as Airbnb, according to a report prepared for the City of Edinburgh Council.
The scheme, introduced by the Scottish Government, requires hosts to display energy performance ratings, have adequate insurance, and comply with various safety measures. Hosts must register by 1 October to continue trading. However, as of 7 August, only 245 licence applications had been submitted out of an estimated 12,000 short-term rental properties in the city.
Why is this happening? The Scottish Government has created this new rule for anyone who wants to use their property for short term lets. They now have to follow some rules:
- Show how energy efficient their property is.
- Make sure they have the right kind of insurance.
- Have safety checks for fire and gas.
If they want to keep their business going, they need to get registered by October 1. The government says it’s all about making sure guests are safe.
What’s the current situation? Although there are about 12,000 properties in Edinburgh that are rented out for short periods, only 245 of them have applied for this new license as of August 7.
What are people saying?
- Fiona Campbell from the Association of Scottish Self-Caterers (ASSC) feels that this might harm many businesses – “The Scottish Government is urging short-term lets operators to rush to inflict an act of self-sabotage on their businesses and livelihoods. In the meantime, these same operators are urgently addressing their need to cover rising living costs and keep their businesses afloat.”
- Louise Dickins, a host, thinks this change will give Scotland a bad reputation and hurt the economy. She wants the government to rethink these rules.
- The Scottish Government says they just want to make sure that visitors are safe and that everything’s up to standard. They also mentioned that these rules will help them know exactly how many short-term rental properties are out there.
- Edinburgh City Council clarifies that they don’t want to reduce the number of short-term rentals by 80%. This 80% figure was just a way to estimate income from potential visitor taxes. They think the real drop in numbers might be less because some properties are listed on multiple platforms. The council wants to balance the benefits of tourism with making sure the city is not overwhelmed by it.
In simple terms: The government is introducing new rules to make sure short-term rentals are safe and up to standard. Because of this, Edinburgh might see fewer properties being used as Airbnbs.