The controversy over short term lets in Edinburgh rumbles on. The Scottish Bed and Breakfast Association (SBBA) has reported that nearly two-thirds of Scottish B&B owners are considering closing their businesses due to new restrictions on short-term lets. The SBBA is urging the Scottish government to postpone the implementation of the licensing scheme, arguing that it will have a negative impact on tourism and job opportunities.

However, Humza Yousaf, the Scottish Cabinet Secretary for Justice, defends the scheme, stating that it has public support and is necessary. Under the new law, short-term let operators must apply for a license by 1 October, with potential fines of up to £2,500 for non-compliance. The licensing scheme was introduced in response to concerns about the growing popularity of platforms like Airbnb, which have been blamed for anti-social behavior and a lack of affordable housing in areas such as Edinburgh.

The Situation:

• The new rule: From 1st October, all short-term let (STL) accommodations in Scotland will need a license.
• Fee: It varies by council, but some property owners might be paying several hundred pounds. The estimated average license fee could be around £514 for three years.
• Penalty: If you don’t apply for a license, you could be fined up to £2,500.

Why was this introduced?

• STL Boom: There’s been a surge in homes being used for short-term letting, especially in places like Edinburgh, largely driven by platforms like Airbnb. However, post-lockdown saw a decline.
• Issues: This growth led to complaints about rowdy behavior from short-term tenants and concerns about fewer affordable housing options, not just in cities but also in rural areas.

What does the licensing scheme entail?

• Different licenses:
  • Home sharing: Renting out part or all of your home while you still live in it.
  • Home letting: Renting out your home while you’re away.
  • Secondary letting: Renting a property you own but don’t live in.
  • Combined license: Renting out your home both when you’re there and when you’re not.
• Additional Requirements: Listings must display energy ratings and provide gas and electricity safety reports.
• Who’s covered: From individual homeowners to commercial accommodations like B&Bs and self-catering apartments.
• Exemptions: Certain businesses, like aparthotels, hotels with alcohol licenses, and long-term residential properties, don’t need a license.

Why the controversy?

• Government’s Stand: The scheme recognizes STL’s economic importance but also addresses public concerns about STL’s impact on local communities.
• Opposition: Tourism industry stakeholders find the scheme controversial. They’ve asked for delays, as many STL operators haven’t signed up yet.
• Local issues: Edinburgh’s city-wide stricter rules faced legal challenges, with landlords claiming the city’s measures targeted small businesses without addressing housing concerns.
• Large vs. Small operators: There’s criticism over aparthotels (typically owned by big companies) being exempt, claiming it favors big businesses over smaller ones.
• Rural Impact: 70% of STL operators are in rural or island areas, and for 61% of them, it’s their main income. While these businesses are essential for small communities, they’re also blamed for housing shortages in rural Scotland.

What’s next?

• Reactions: Some B&B owners, like award-winner Avril Rennie, are worried that the new licensing fees and rules might force them out of business.
• Supporters’ view: Advocates believe enough delays have been made. They argue that the focus should shift from tourists to residents, with STLs taking away potential homes for locals.

In simple terms: The Scottish government is implementing a licensing scheme for short-term property rentals to balance the booming tourism industry and the needs of local residents. While it aims to ensure a better living environment for locals, not everyone in the tourism sector agrees with the approach.