Scotland’s business community sends open letter to Ministers over “high risk economic self-harm” of testing policy divergence from UK

A Press Release from the Scottish Tourism Alliance

Scotland’s business community sends open letter to Ministers over “high risk economic self-harm” of testing policy divergence from UK

A group of business organisations led by the Scottish Tourism Alliance has written to economy focussed Ministers and officials seeking an urgent meeting on the renewed crisis in the tourism sector and supply chain as a result of Scottish Government policy.

Commenting on the letter (attached), CEO of the Scottish Tourism Alliance, Marc Crothall said:
“The Scottish Government’s latest decision on international travel restrictions, specifically around Day 2 testing has caused serious alarm across the travel, tourism and hospitality sector in Scotland and the broader business community.

I have received a steady stream of messages over the course of the weekend from businesses presenting direct and immediate evidence of the impact of the Scottish Government’s decision on international travel restrictions; as an example, one inbound operator has been told to direct all future bookings to airports south of the border.

It is the grave concern of many that international bookings, revenue and visitors are being lost not just now but should this policy remain, it could destroy any hopes of recovery in 2022.  Unless there is a swift change, the Scottish Government’s position on international travel will effectively write off international tourism to Scotland for another year to the detriment of our businesses, communities, supply chain and wider economy.

Our industry has gone above and beyond guidance and legal requirements to protect public health and support the Scottish Government’s efforts to curtail the spread of the virus and curb cases; we have requested that a member of the Scottish Government’s public health team also attends this meeting to explain how the most recent analysis of data supports the view that international travel is driving transmission.  This policy is causing immediate damage to revenues and represents high risk self-harm for jobs and the economy in the short, medium and long term.”

Rebecca Brooks, Managing Director of Abbey UK inbound tour operator said:
“The Scottish Government’s incomprehensible decision to diverge from the UK government in maintaining PCR testing for fully vaccinated international visitors to Scotland ensures no international recovery in the short to medium term as we now lose out to England and our European neighbours.

European countries have benefitted from the safe restart of international travel without testing for the vaccinated since the 19thJuly.  Given the immediate onset of the booking window for 2022, there is and will be no international demand whilst PCR testing remains in place, impacting the supply chain for both leisure and business sectors. Inbound operators are now facing the bleak reality of entering a third year with little to no business whilst this colossal disadvantage remains and face potential market failure after nineteen months of no trade. I would call on the Scottish Government to urgently revise their decision or risk the survival of this sector and all of the livelihoods who depend on it.”

Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce Network commented:

“We simply fail to comprehend and are shocked by the Scottish Government’s decision not to align with others to remove the need for a PCR test for double vaccinated tourists and business travellers. This is not only about the tourism and travel industry, it touches every part of our economy.  Do we seriously believe that our economy will grow, and we will be able to attract investment, without being connected and accessible to the world?

The impact, if this decision if not reversed quickly, is that we will have airlines and operators withdrawing from Scotland with businesses being forced to direct all our exporting and importing trade through other airports.  How will this support jobs in Scotland?

We need to hear and see the data which has driven this decision which is completely contradictory to leading global scientific evidence.”

You can read the letter here.

Housing and Short-Term Lets in Scotland: The Facts

Short-term lets are often presented as being a leading cause of Scotland’s housing crisis. However, it is important to place the debate in a holistic context – for instance, noting the number of empty homes in Scotland, demographic changes, and the need to build more homes – while recognising the value of tourist accommodation to the Scottish economy and local communities.

The ASSC welcomes the opportunity to share data about the holiday let sector which we believe will contribute to a more informed conversation about the appropriate regulatory framework.

Self-Catering in Scotland

  • Self-catering properties have been a longstanding presence in communities for generations, especially in rural/remote communities, and provide an economic boost for local areas and enhance Scotland’s tourist accommodation offering.
  • Latest figures show there are 17,794 self-catering units on Non-Domestic Rates. These properties generate: 4 million visitor nights per year; £867.1m total visitor spend; and support 23,979 FTE jobs.[1]
  • Such self-catering properties are legitimate, bona fide businesses whose owners depend on the money generated for their livelihood – it is not a hobby or a way to supplement their income. This is entirely separate from the ‘homesharing’ concept, or those amateur operators who utilise online marketing platforms but are not subject to the same levels of existing regulation.

The Need for Robust Empirical Data

  • Underpinning any decision to regulate the short-term letting sector is the need for robust, empirical data. Unfortunately, there has been a tendency to focus on scraped data from Airbnb – based on inaccurate information and flawed methodologies – leading to misleading conclusions about the nature of the short-term letting landscape.[2]
  • The ASSC is not averse to regulation and has proactively shared evidence-based policy papers and recommendations[3] since 2017 about the nature and scale of short-term letting in Scotland but unfortunately this has been ignored by a focus on this unreliable data from one marketing platform.
  • The Scottish Government’s draft BRIA for short-term let licensing references research noting that there were approximately 32,000 active listings on Airbnb in May 2019.[4] However, this does not mean that there are 32,000 short-term lets which would be readily available on the long-term housing market as many have erroneously claimed.
  • The number of listings on online platforms in any given area is not necessarily an indication of impact on long-term housing. For example: (a) many of these properties are already the primary residences of individuals involved in ‘homesharing’ who share a room(s), or their entire home while away; (b) each listing does not represent a single housing unit. A property can have multiple listings; and (c) marketing platforms like Airbnb contain a diverse range of accommodation including hotels and B&Bs, as well as unconventional accommodation like yurts, barns, boats, and campervans and one train, which cannot be seen as housing stock.
  • Parliamentary answers from the Scottish Government[5] confirm the BRIA figures were from scraped data provided by InsideAirbnb (not from Airbnb directly) and that they could not break this down by property type – be it a single/shared room, entire property, or unconventional accommodation. This means the estimation there are 32,000 “short-term lets” is wholly unreliable. It is also based on pre-pandemic 2019 figures. Moreover, they admit we do not have an estimate of how many short-term lets will return to the long-term housing market.”[6]

A Holistic Discussion on Housing

The housing challenges facing Scotland are far more multifaceted than the existence and growth of short-term and holiday lets alone. For instance:

  • There are currently 47,333 empty houses in Scotland (of which 7152 are in Edinburgh, 3536 in Glasgow, 2943 in Fife, 2595 Highland).[7] These empty homes could be utilised for far more productive purposes and provide homes for those who need.
  • The number of households in Scotland continued to increase in 2020, reaching 2.51 million. This was an increase of 142,800 (6%) since 2010. The growth in the number of households is partly due to an increase in the population, but also because people are increasingly living alone or with fewer other people. More than a third of households are single person households. An estimated 900,000 people are living alone.
  • There were 2.65 million dwellings in Scotland in 2020. Of these, 90,500 dwellings (3%) were vacant and 24,500 (1%) were second homes.[8]
  • Empty and second homes are concentrated in different parts of the country. For example, remote rural areas have a higher percentage of empty and second homes than urban areas[9]. However, City of Edinburgh is a hotspot for empty homes in Scotland.
  • 172,170 houses were built between 2010-2019 (18,118 in Edinburgh)[10] – and we need many more. Homes for Scotland have argued that Scotland has amassed a housing shortfall of 85,000 homes and that we need to build at least 25,000 per year to meet the demands of our population.[11]
  • Progress on housebuilding is not fast enough. For instance, the Scottish Government have only spent half of their £25m Rural Housing Fund which aims to build affordable homes in rural areas.[12]
  • City of Edinburgh had the largest increase in absolute number of households (17,300), an increase of 8%.[13]
  • Over the last ten years, the proportion of dwellings which are second homes has increased in five council areas and decreased in 24 council areas.[14]
  • When housing demand and the level of empty housing is set against the number of self-catering units, it suggests self-catering activity is not of a scale sufficient to affect housing supply issues in Scotland. Ultimately, building too few homes remains the core cause of Scotland’s housing problems, not the holiday let sector.

Conclusion

  • Policymakers should not use holiday accommodation as a means to solve housing challenges in Scotland, instead focusing on building more affordable homes and tackling the scourge of empty properties.
  • Any short-term let regulations taken forward, either at a national or local level, need to be informed by robust empirical data. Scraped data from online platforms can lead to misleading conclusions about the nature of the short-term letting market.
  • The Scottish Government’s BRIA accompanying their licensing proposals states: “A benefit of licensing will be improved access to affordable rented homes.” This claim is entirely unfounded and lacks an evidence base.
  • Any housing issues in relation to short-term lets should be addressed by the Planning Act 2019 – through the introduction of control zones underpinned by robust quantitative data – and should not play a part in the licensing proposals which are meant to focus on health and safety.
  • Small businesses like self-catering, present in communities for decades, should not be used as a convenient scapegoat for wider failures in housing policy.
  • The Scottish Government needs to back legitimate professional businesses and our renowned tourism sector as we recover from the effects of Covid-19, allowing visitors at home and abroad to benefit from our unique hospitality and fantastic range of accommodation.

[1] https://www.assc.co.uk/wp-content/uploads/2021/08/Economic-Impact-Study-%E2%80%93Scotland-Report.pdf

[2] This is evident in both the Scottish Government’s BRIA accompanying their licensing proposals, as well as City of Edinburgh Council’s plans for a short-term let control area.

[3] For instance, see ASSC, Far More Than Just Houses: The Benefits of Short-Term Rental in Scotland (2018). Url: https://www.assc.co.uk/wp-content/uploads/2018/06/MoreThanJustHouses.pdf; and ASSC, Forward Together: A Collaborative Approach to Short-Term Letting (2020). Url: https://www.assc.co.uk/wp-content/uploads/2020/12/2020_ForwardTogether.pdf

[4] https://www.gov.scot/binaries/content/documents/govscot/publications/impact-assessment/2021/06/short-term-lets-licensing-scheme-planning-control-area-legislation-draft-business-regulatory-impact-assessment-bria/documents/short-term-lets-licensing-scheme-planning-control-area-legislation-draft-business-regulatory-impact-assessment-bria-consultation/short-term-lets-licensing-scheme-planning-control-area-legislation-draft-business-regulatory-impact-assessment-bria-consultation/govscot%3Adocument/short-term-lets-licensing-scheme-planning-control-area-legislation-draft-business-regulatory-impact-assessment-bria-consultation.pdf

[5] Parliamentary answer to S6W-02111. Url: https://www.parliament.scot/chamber-and-committees/written-questions-and-answers/question?ref=S6W-02111

[6] Parliamentary answer to S6W-02109. Url: https://www.parliament.scot/chamber-and-committees/written-questions-and-answers/question?ref=S6W-02109

[7] https://goodmove.co.uk/empty-housing-hotspots/

[8] Vacant properties include those classified as:  long-term (six months or more) empty (47,300, 1.8% of all dwellings); unoccupied exemptions (43,200, 1.6% of all dwellings) such as new homes yet to be occupied and dwellings undergoing repair or awaiting demolition. See: https://www.nrscotland.gov.uk/files//statistics/household-estimates/2020/house-est-20-publication.pdf

[9] https://www.nrscotland.gov.uk/statistics-and-data/statistics/statistics-by-theme/households/household-estimates/2020

[10] https://www.gov.scot/publications/housing-statistics-for-scotland-new-house-building/

[11] https://yourviews.parliament.scot/session-5/local-gov-sustainability-covid/consultation/download_public_attachment?sqId=question-2020-06-10-3171498657-publishablefilesubquestion&uuId=866941340

[12] https://www.thecourier.co.uk/fp/politics/scottish-politics/2493715/snp-ministers-under-fire-over-failure-to-spend-25-million-rural-housing-fund/

[13] https://www.nrscotland.gov.uk/files//statistics/household-estimates/2020/house-est-20-publication.pdf

[14] https://www.nrscotland.gov.uk/files//statistics/household-estimates/2020/house-est-20-publication.pdf

 

 

Short-Term Let Licensing: Parliamentary Questions

Parliamentary Questions lodged by cross-party MSPs, pertinent to the Short-Term Let Regulations

S6W-03537: Jamie Greene, West Scotland, Scottish Conservative and Unionist Party, Date Lodged: 06/10/2021: To ask the Scottish Government what discussions its ministers have had with short-term lets businesses and sole traders in (a) North Ayrshire and (b) Inverclyde regarding its proposed short-term lets licensing scheme and planning control area legislation. Current Status: Expected Answer date 03/11/2021

S6W-03536: Jamie Greene, West Scotland, Scottish Conservative and Unionist Party, Date Lodged: 06/10/2021: To ask the Scottish Government what estimate it has made of the potential job losses in (a) Inverclyde and (b) North Ayrshire as a result of its proposed short-term lets licensing scheme and planning control area legislation. Current Status: Expected Answer date 03/11/2021

S6W-03496: Beatrice Wishart, Shetland Islands, Scottish Liberal Democrats, Date Lodged: 05/10/2021: To ask the Scottish Government, further to the business and regulatory impact assessment (BRIA) for its short-term lets licensing scheme and planning control area legislation, how the draft short-term lets licensing proposals support the (a) National Performance Framework and (b) Scottish Government’s commitment to being a Wellbeing Economy Government. Current Status: Expected Answer date 02/11/2021

S6W-03350: Jamie Greene, West Scotland, Scottish Conservative and Unionist Party, Date Lodged: 28/09/2021: To ask the Scottish Government what discussions it has had with short-term lets businesses and sole traders regarding its proposed short-term lets licensing scheme and planning control area legislation, and how many of these individuals and businesses are based outside of the City of Edinburgh Council area. Current Status: Expected Answer date 26/10/2021

S6W-03349: Jamie Greene, West Scotland, Scottish Conservative and Unionist Party, Date Lodged: 28/09/2021: To ask the Scottish Government what estimate it has made of the potential job losses in (a) Scotland and (b) the West Scotland region as a result of its proposed short-term lets licensing scheme and planning control area legislation.
Current Status: Expected Answer date 26/10/2021

S6W-03331: Liam McArthur, Orkney Islands, Scottish Liberal Democrats, Date Lodged: 27/09/2021: To ask the Scottish Government, further to its 2020 islands communities impact assessment for short-term let licensing and control areas, what data it used to conclude that “noise and anti-social behaviour can be an issue in rural and island areas, particularly from larger ‘party mansion’ type properties”, and how it defines a “party mansion”. Current Status: Expected Answer date 25/10/2021

S6W-03328: Liam McArthur, Orkney Islands, Scottish Liberal Democrats, Date Lodged: 27/09/2021: To ask the Scottish Government what its response is to the reported concerns of officials from The Highland Council that the introduction of overprovision through the short-term let licensing scheme “is confusing, as the purpose would appear very similar to control areas.” Current Status: Expected Answer date 25/10/2021

S6W-03330: Liam McArthur, Orkney Islands, Scottish Liberal Democrats, Date Lodged: 27/09/2021: To ask the Scottish Government for what reason its 2020 islands communities impact assessment for short-term let licensing and control areas did not assess the financial impact of such regulation on short-term let operators in island communities. Current Status: Expected Answer date 25/10/2021

S6W-03329: Liam McArthur, Orkney Islands, Scottish Liberal Democrats, Date Lodged: 27/09/2021 To ask the Scottish Government what plans it has to publish an updated islands communities impact assessment to accompany its revised short-term let licensing order.
Current Status: Expected Answer date 25/10/2021

Questions Answered:

S6W-03003: Liam McArthur, Orkney Islands, Scottish Liberal Democrats, Date Lodged: 16/09/2021: To ask the Scottish Government when it will publish its response to the consultation on its draft Licensing Order and Business and Regulatory Impact Assessment (BRIA) for short-term lets.

Shona Robison: The Scottish Government will publish its response to the consultation on the draft Licensing Order and Business and Regulatory Impact Assessment (BRIA) for short-term lets ahead of laying the draft Licensing Order in November.

S6W-03012: Jackie Baillie, Dumbarton, Scottish Labour, Date Lodged: 16/09/2021: To ask the Scottish Government, further to the business and regulatory impact assessment (BRIA) for its short-term lets licensing scheme and planning control area legislation, what cases and evidence there are to support the assertion that short-term let accommodation in Scotland is used “for criminal enterprises (such drug dealing, sex trafficking etc.), with or without the collusion of the host”.

Shona Robison: Our proposed licensing scheme will assist in ensuring that short-term lets are safe and used for lawful purposes. Police Scotland is represented on the Short Term Lets Stakeholder Working Group and has expressed concern about some short-term lets being used for criminal purposes. Residents and community groups have also raised concerns with the Scottish Government.

S6W-03023: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government, further to the comment by the Minister for Local Government, Housing and Planning on 8 January 2020 in relation to the plans for the short-term let licensing regime, whether ensuring the safety of occupants was the rationale for introducing the policy, and whether that continues to be the case.

Shona Robison: On 8 January 2020, Mr Stewart, the then Minister for Local Government, Housing and Planning, emphasised the importance of the safety of visitors, hosts, neighbours and local residents in his statement to the Scottish Parliament. This was the rationale for introducing the policy and that remains the case. It has also always been the intention to give local authorities further powers under the licensing scheme to tackle other issues arising from short-term lets.

Our licensing scheme proposals deliver national consistency on safety standards, and autonomy for local authorities to add further conditions in response to local needs and concerns.

S6W-03026: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government what its position is on how the overprovision regimes under the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2021 and Town and Country Planning (Short-term Let Control Areas) (Scotland) Regulations 2021 interact with each other.

Shona Robison: Draft guidance for local authorities on overprovision is set out in chapter 3 of the Licensing guidance part 2: supplementary guidance for licensing authorities, letting agencies and platforms . Paragraphs 3.37 to 3.41 explain how overprovision policies interact with control areas.

S6W-03027: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government what its position is on whether the short-term let licensing legislation contradicts the Provision of Services Regulations in UK law.

Shona Robison (01/10/2021): The Scottish Government’s position is that the short-term let licensing legislation does not contradict the Provision of Services Regulations, the Human Rights Act 1998 (The First Protocol, Article 1), nor The Charter of Fundamental Rights of the European Union (Article 17). The Scottish Government’s position is that the development of the legislation for the short-term lets licensing scheme is in line with the Better Regulation Agenda. The Scottish Government expects local authorities to adhere to the Scottish Regulators’ Strategic Code of Practice when developing their short-term lets licensing procedures and policies.

Before any government legislation is laid at the Scottish Parliament, government lawyers carry out robust analysis to ensure that it is competent. or the licensing legislation, that includes ensuring that the Licensing Order is made within the parameters and powers of the Civic Government (Scotland) Act 1982.

The Scottish Government is in the process of carefully reviewing the responses to the third public consultation on our proposals, which closed on 13 August 2021, with a view to making any further necessary revisions to the licensing legislation.

S6W-03028: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government what its position is on whether the short-term let licensing legislation contradicts the provisions relating to property contained in the Human Rights Act 1998 (The First Protocol, Article 1), and The Charter of Fundamental Rights of the European Union (Article 17).

Shona Robison: I refer the member to the answer to question S6W-03027 on 1 October 2021. All answers to written Parliamentary Questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

S6W-03029: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government what its position is on whether the short-term let licensing legislation is in line with the Better Regulation Agenda and the Scottish Regulators’ Strategic Code of Practice (Clauses 2 and 3).

Answered by Shona Robison: I refer the member to the answer to question S6W-03027 on  1 October 2021. All answers to written Parliamentary Questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

S6W-03030: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government what its position is on whether the overprovision regime in the short-term let licensing legislation is ultra vires in terms of the Civic Government (Scotland) Act 1982.

Answered by Shona Robison: I refer the member to the answer to question S6W-03027 on 1 October 2021. All answers to written Parliamentary Questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

S6W-03024: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government what empirical data it expects local authorities to provide to allow the introduction of a short-term let control area.

Shona Robison: Guidance for local authorities on establishing control areas and the reasons and evidence they need is set out in chapter 2 of Planning circular 01/2021: short-term let control areas .

S6W-03022: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government, further to the comment by the Minister for Local Government and Housing on 8 November 2017 in relation to the antisocial behaviour powers available to local authorities, whether it expects local authorities to enforce the Antisocial Behaviour Notices (Houses Used for Holiday Purposes) (Scotland) Order 2011 regarding antisocial behaviour complaints in connection with short-term let accommodation.

Shona Robison: The Scottish Government fully supports the police, local authorities and the court services to take appropriate and proportionate action to tackle antisocial behaviour. We expect all relevant authorities to use the powers available to them to deal with antisocial behaviour.

S6W-03025: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government what constitutes overprovision in terms of the operation of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2021.

Shona Robison: Draft guidance for local authorities on overprovision is set out in chapter 3 of the Licensing guidance part 2: supplementary guidance for licensing authorities, letting agencies and platforms. The guidance will be revised and updated working with stakeholders, once the legislation is finalised.

S6W-03012: Jackie Baillie, Dumbarton, Scottish Labour, Date Lodged: 16/09/2021: To ask the Scottish Government, further to the business and regulatory impact assessment (BRIA) for its short-term lets licensing scheme and planning control area legislation, what cases and evidence there are to support the assertion that short-term let accommodation in Scotland is used “for criminal enterprises (such drug dealing, sex trafficking etc.), with or without the collusion of the host”.

Shona Robison: Our proposed licensing scheme will assist in ensuring that short-term lets are safe and used for lawful purposes. Police Scotland is represented on the Short Term Lets Stakeholder Working Group and has expressed concern about some short-term lets being used for criminal purposes. Residents and community groups have also raised concerns with the Scottish Government.

S6W-03021: Rachael Hamilton, Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party, Date Lodged: 20/09/2021: To ask the Scottish Government whether it plans to review the effectiveness of the Antisocial Behaviour Notices (Houses Used for Holiday Purposes) (Scotland) Order 2011.

Shona Robison: We have no plans to review the Antisocial Behaviour Notices (Houses Used for Holiday Purposes) (Scotland) Order 2011 at this time. However, we are always open to listening to the police, local authorities, the court services and communities to see how we can improve the approach being taken to tackle antisocial behaviour for the benefit of all communities.

Donald Cameron, Highlands and Islands, Scottish Conservative and Unionist Party: To ask the Scottish Government whether it has prepared an Island Communities Impact Assessment in relation to its proposed short-term lets Licensing Order, and, if so, whether it will publish it.

Shona Robison: An Island Communities Impact Assessment (ICIA) was published on 10 December 2020 in our 2020 consultation report on proposals for a licensing scheme and planning control areas for short-term lets in Scotland. The ICIA can be found at: Short-term lets – licensing scheme and planning control areas: consultation analysis – gov.scot (www.gov.scot)

Jamie Halcro Johnston, Highlands and Islands, Scottish Conservative and Unionist Party: To ask the Scottish Government what changes it has made in its revised short-term let licensing order in relation to tourist (a) bed and breakfast accommodation and (b) self-catering units.

Shona Robison: Short-term lets can offer people a flexible and cheaper travel option, and have contributed positively to Scotland’s tourism industry and local economies across the country. 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 regulation of short term lets to be vital in balancing the needs and concerns of residents and communities that have been raised with us, alongside wider economic and tourism interests.

The revised draft Licensing Order was published for consultation on 25 June 2021. Table 1 in the consultation paper sets out details of the changes that have been made to the Licensing Order.

Liam McArthur, Orkney Islands, Scottish Liberal Democrats: To ask the Scottish Government, in light of the remit of the Short-Term Let Working Group to “identify and resolve stakeholder issues and concerns”, what specific stakeholder issues and concerns were resolved by the group, and how was this reflected in (a) guidance and (b) any revised legislation.

Shona Robison: (a) Stakeholder concerns in respect of the guidance are included in the minute of the third meeting of the Working group in May 2021: Short Term Lets Working Group papers and minutes: May 2021 – gov.scot (www.gov.scot) . The draft guidance published on 25 June 2021 reflects many of the suggestions made at the Working Group meeting and in correspondence. The draft guidance will be considered further by the Working Group.

(b) The revised draft Licensing Order was published for consultation on 25 June 2021. Table 1 in the consultation paper sets out details of the changes that have been made to the Licensing Order.

Liam McArthur, Orkney Islands, Scottish Liberal Democrats: To ask the Scottish Government what baseline data local authorities will be required to use to establish an over-provision policy for its short-term let licensing proposals.

Shona Robison: Short-term lets can offer people a flexible and cheaper travel option, and have contributed positively to Scotland’s tourism industry and local economies across the country. 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 regulation of short term lets to be vital in balancing the needs and concerns of residents and communities, alongside wider economic and tourism interests.

Guidance for local authorities on overprovision is set out in chapter 3 of the Licensing guidance part 2: supplementary guidance for licensing authorities, letting agencies and platforms .

In considering whether there is or would be overprovision in any locality, licensing authorities must have regard to:

  1. the number and capacity of licensed short-term lets in the locality,
  2. the need for housing accommodation in the locality and the extent to which short-term let accommodation is impacting the availability of housing, and
  3. such other matters as they consider relevant.

We have set out in guidance for local authorities that the data which licensing authorities use to evidence overprovision should be drawn from reliable sources, for example using data from their licence schemes.

Jamie Halcro Johnston (Highlands and Islands) (Scottish Conservative and Unionist Party): To ask the Scottish Government how many guest houses it estimates there are in Scotland, and how many are licensed under the Licensing (Scotland) Act 2005.

Ivan McKee: There are an estimated 1,460 guest houses on the valuation roll according to the most recently available Scottish Assessors data. This is likely to be an under-estimate however as it excludes properties on the council tax system. Information on the type of premises which hold an alcohol license is not held centrally.

Rachael Hamilton, (Ettrick, Roxburgh and Berwickshire) (Scottish Conservative and Unionist Party): To ask the Scottish Government what its response is to the resignation from the Short-Term Lets Stakeholder Working Group of the Association of Scotland’s Self-Caterers, the Scottish Bed and Breakfast Association, Airbnb and the UK Short Term Accommodation Association.

Shona Robison: The Scottish Government considers regulation of short term lets to be vital in balancing the needs and concerns of residents and communities with wider economic and tourism interests. Mr Stewart, the then Minister for Local Government, Housing and Planning, announced in January 2020 that regulation of short-term lets would include a licensing scheme. The remit of the Short-Term Lets Stakeholder Working Group established in February 2021 is to refine the licensing legislation and develop guidance.

The Association of Scotland’s Self-Caterers, the Scottish Bed and Breakfast Association, Airbnb and the UK Short Term Accommodation Association favour a registration scheme. The Scottish Government has valued their contributions to the Working Group and is disappointed that they have decided not to continue to participate. The Scottish Government is committed to getting this important legislation absolutely right and monitoring its implementation.

Rachael Hamilton (Ettrick, Roxburgh and Berwickshire) (Scottish Conservative and Unionist Party): To ask the Scottish Government, further to its business and regulatory impact assessment (BRIA) for its short-term let licensing scheme, how it calculated the average indicative fee for processing a short-term let licence application to be between £223 and £377.

Shona Robison: The assumptions behind, and calculations of, the average indicative fees for a short-term lets licence are set out in section F and Annex A of the draft Business and Regulatory Impact Assessment published for consultation on 25 June 2021. These fees are Scotland-wide average fees for application for a three year licence; the actual fees charged for any given application may be higher or lower, depending on the way each local authority implements its licensing scheme and the circumstances of the application. The total revenue from fees must not exceed the costs of the scheme in each local authority. Chapter 4 of our draft guidance for licensing authorities, letting agencies and platforms provides further detail on setting licence fees: Short term lets – licensing scheme part 2: supplementary guidance for licensing authorities, letting agencies and platforms – gov.scot (www.gov.scot)

Rachael Hamilton (Ettrick, Roxburgh and Berwickshire) (Scottish Conservative and Unionist Party): To ask the Scottish Government, further to the meeting of the Short-Term Lets Working Group on 18 February 2021, what its response is to the Society of Local Authority Lawyers and Administrators (SOLAR) estimate that the costs of short-term let licensing could be higher than those set out in the Scottish Government’s business and regulatory impact assessment (BRIA) and could be similar to HMO costs of up to £2,000 for a three-year licence.

Shona Robison: Short-term lets can offer people a flexible and cheaper travel option, and have contributed positively to Scotland’s tourism industry and local economies across the country. 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 regulation of short term lets to be vital in balancing the needs and concerns of residents and communities, alongside wider economic and tourism interests.

The draft Business and Regulatory Impact Assessment published for consultation on 25 June 2021 estimates average, indicative fees in the range £223 and £377 for a three year licence. These estimates are based on full cost recovery.

The actual levels of fee are up to local authorities and are likely to include higher and lower tiers. The total revenue from fees must not exceed the costs of the scheme in each local authority.

Mark Griffin (Central Scotland) (Scottish Labour Party): To ask the Scottish Government, further to the consultation on its short-term lets draft Licensing Order and Business and Regulatory Impact Assessment (BRIA), what method it used to estimate that there are 32,000 short-term lets in Scotland, and whether it will provide a breakdown of this figure by how many are (a) a single room in a property, (b) a shared room in a property, (c) an entire property and (d) unconventional accommodation such as an outhouse or yurt.

Shona Robison: The figure of 32,000 short-term lets quoted in our BRIA relates to Airbnb listings, and is taken from our independent research on the impact of short-term lets on communities, which was published in October 2019: Short-term lets – impact on communities: research – gov.scot (www.gov.scot)

The research was based on data provided by InsideAirbnb, dated May 2019. Of the 32,000 Airbnb listings across Scotland, 69.2% were entire homes, 30.3% were private rooms, and 0.4% were shared rooms.

We do not have a breakdown of these listings by type of premises. Our licensing scheme will provide data on the types of short-term let and premises being used in Scotland.

Mark Griffin (Central Scotland) (Scottish Labour Party): To ask the Scottish Government, further to the consultation on its short-term lets draft Licensing Order and Business and Regulatory Impact Assessment (BRIA), how many of the estimated 32,000 short-term lets it anticipates will return to the long-term housing market following the implementation of its plans.

Shona Robison: Our regulatory proposals will give local authorities powers to strike a balance between the needs and concerns of their local communities, with the wider economic and tourism benefits of short-term lets. In certain areas, achieving this balance may require a reduction in numbers of whole homes offered for short-term lets and local authorities have been given powers through the planning control area regulations to help manage activity in their area. The consultation draft Licensing Order also includes powers to manage overprovision, and licensing requirements should mean that some unsuitable operators and accommodation will also leave the market. We do not have an estimate of how many short-term lets will return to the long-term housing market as this depends on how local authorities use the powers they are being given.

Mark Griffin (Central Scotland) (Scottish Labour Party): To ask the Scottish Government what information it has on the estimated number of (a) empty private residential properties, (b) empty public sector residential properties, (c) second homes and (d) self-catering units there currently are.

Shona Robison: (a) & (c) The latest set of annual statistics on the number of Long Term Empty Properties and Second Homes, based on Council Tax Base data as at September 2020, were published in the Housing Statistics Quarterly Update in December 2020, and are available at: https://www.gov.scot/publications/housing-statistics-scotland-quarterly-update/, with detailed local authority level Excel tables covering the period from 1996 to 2020 available at https://www.gov.scot/publications/housing-statistics-empty-properties-and-second-homes/. Figures are split into the categories of Long Term Empty Properties and Second Homes, however are not available broken down by housing tenure.

The latest annual figures show that there were 47,333 Long Term Empty properties and 24,466 Second Homes, across all tenures, as at September 2020. In addition, there were 44,143 Unoccupied Exemptions, generally properties which are empty and unfurnished for less than 6 months and exempt from paying council tax.

(b) The Scottish Housing Regulator publish figures on the number of vacant self-contained lettable social housing properties, with most recent data as at end June 2021 available as part of the Covid-19 dashboards at: https://www.housingregulator.gov.scot/landlord-performance/national-reports/covid-19-dashboards, and with previous annual data published as part of annual Charter Data figures for 2014/15 to 2018/19 at: https://www.housingregulator.gov.scot/landlord-performance/statistical-information

The latest Scottish Housing Regulator figures on vacant self-contained lettable social housing stock show that there were 8,886 empty social sector homes (including 5,311 local authority homes and 3,575 housing association homes) as at the end of June 2021. There will always be vacant social housing stock at any point of time as social landlords prepare homes in advance of them being re-allocated. Social landlords, as part of meeting the Scottish Social Housing Charter, strive to provide an efficient and effective management of their housing services. This includes minimising the time houses are empty. Latest published figures from the Scottish Housing Regulator show that the average time to re-let a social housing property in the quarter April to June 2021 was 52 calendar days (an average of 62 days for local authority properties, and 41 days for housing association properties).

Questions pertaining to Affordable Housing:

Richard Leonard, Central Scotland, Scottish Labour: To ask the Scottish Government whether it will provide an update on its commitment to supporting the building of affordable homes for rent.

Shona Robison: The Scottish Government is proud of our record on delivering, since 2007, more than 102,000 affordable homes, nearly 71,000 of which were for social rent, including more than 16,000 council homes. As the programme for government makes clear, we are committed to delivering 110,000 affordable homes by 2032, of which 70 per cent will be available for social rent and 10 per cent will be in our remote, rural and island communities.

Delivering on that ambitious affordable homes target would support a total investment package of around £18 billion and up to 15,000 jobs each year. In the four years to 2020, we delivered over 75 per cent more affordable homes per head of population than in both England and Wales, and over nine times more social rented properties per head of population than in England.

Richard Leonard: I thank the cabinet secretary for that response. Back in April 2020, the Auditor General for Scotland told the Government that it must “evaluate the impact of the current programme on housing needs and the economic impact of the investment in affordable housing”.

Shelter Scotland, in its document “Exiting Covid and Tackling Scotland’s Housing Emergency: Shelter Scotland’s 2021 Action Plan”, says that the Government’s programme must be about more than simply the number of housing units completed—it must be about the social impact; moving Scotland’s communities in the right direction; and, first and foremost, reducing social housing need.

Will the cabinet secretary today give a commitment to place before the Parliament an annual housing and social justice report, to include whether housing need has gone up or down; the economic and social impact of the building programme; the state of housing need and access among groups that are all too often marginalised; and measures of wider community benefit and wellbeing?

Shona Robison: Richard Leonard will, I hope, be aware that the “Housing to 2040” strategy talks about many of those issues. Housing is not just about bricks and mortar—it is a core anti-poverty measure, and I very much understand that.

I was asked something along the same lines as Richard Leonard’s question when I attended the Local Government, Housing and Planning Committee this week. I said that I would reflect on whether, in addition to the myriad pieces of information that are provided on progress towards the affordable housing targets—there are a lot of statistics, data and reporting—further reports would be of benefit. I do not think that anyone can say that an ambitious target of 110,000 affordable homes, a total investment package of £18 billion and the creation of 15,000 jobs each year is anything other than to be welcomed.

Colin Smyth, South Scotland, Scottish Labour: To ask the Scottish Government what action it is taking to tackle the reported shortage of housing in rural areas.

Shona Robison: As I said, the Government has significantly invested in affordable housing, delivering 4,800 homes between 2016-17 and 2019-20 as part of the £3.4 billion affordable housing supply programme, and we have committed to the 10 per cent of 110,000 homes target. We are also committed to developing our remote, rural and islands action plan. Councils are being given significant additional powers to manage particular challenges in communities, such as short-term lets – we will lay legislation scheme for a licensing scheme in November. We are also giving local authorities the power to deal with second homes, if they see that as a problem in their area.

Colin Smyth: Given that the population of rural areas is growing and now accounts for 17 per cent of Scotland’s population, does the cabinet secretary think that the 10 per cent that she referred to of the target of 110,000 homes is going to be adequate? Put simply, that is about 1,000 properties a year. There are big challenges when it comes to labour shortages in rural areas, and access to affordable housing is one of the biggest barriers. Surely we should be planning to build more houses in order to tackle that challenge.

Shona Robison: I see the 10 per cent target as a minimum and, through the rural and remote housing plan, we will get a better sense and more evidence of what the housing need is. I want to take a more strategic approach to looking at housing needs in remote and rural Scotland. We have been relying on community organisations and community responses for proposals, and that can be sometimes quite difficult, because of the complexities. We want to assist communities to analyse and agree housing needs and priorities, and then work with them and local authorities and social landlords to work up plans to deal with those shortages.

Jenni Minto (Argyll and Bute) (SNP): Will the cabinet secretary outline what action is being taken to reduce the impact of the huge increase in short-term lets on the availability of rural housing? That issue is of major concern to those who live in those areas.

Shona Robison: Our licensing scheme will ensure that all short-term lets across Scotland comply with basic safety standards, in order to protect guests and neighbours. Local authorities will have the discretion to add further licence conditions in order to address any local concerns such as littering or the overcrowding of properties. The licensing scheme will provide local authorities with data on the number, type and location of short-term lets in their areas. They can also, of course, designate short- term let control areas if they wish to do so, in order to address pressures that are created by secondary short-term letting. Within a control area, planning permission would always be required to let out a whole home for short-term lets. Finally, the provisions will allow local authorities to manage high concentrations of secondary letting where those affect the availability of residential accommodation or the character of a neighbourhood.

Beatrice Wishart (Shetland Islands) (LD): The shortage of housing is not just a rural issue; it is an island issue. What action is being taken to tackle island housing shortages, which disproportionately affect young people and are a significant factor in island depopulation?

Shona Robison: I very much appreciate that issue, and the remote, rural and island housing plan will absolutely look at the needs of island communities. It can also look at how we use island bonds as part of the response to that. Just this morning, I met with the leader of Shetland Islands Council. We talked about many issues, and the issue that the member raised was one of those that we explored. We will have further discussions about it as we take matters forward.

Liz Smith, Mid Scotland and Fife, Scottish Conservative and Unionist Party: To ask the Scottish Government whether it will provide an update on the Rural Housing Fund.

Shona Robison: Between 2016-17 and 2019-20, the Scottish Government invested more than £400 million through the affordable housing supply programme, including the rural and islands housing funds, in rural and island communities, and delivered more than 4,800 affordable homes in that time. The rural and islands housing funds are described in the Scottish Land Commission’s report on “The Role of Land in Enabling New Housing Supply in Rural Scotland” as “game changers” for community-led housing development.

We have committed to delivering 110,000 affordable homes by 2032, of which 10 per cent will be in our remote, rural and island communities, backed by at least £45 million.

Liz Smith: I thank the cabinet secretary for that response. However, she is well aware that less than half the £25 million fund that was set aside for rural housing has actually been spent, despite the chronic shortages of affordable housing in many parts of the countryside, and that there has been much faster progress on house building in the central belt than in rural areas. Can she explain why that is the case and what is being done to rectify the situation?

Shona Robison: As I said in my initial answer, good progress has been made in delivering rural housing. I talked about the 4,800 affordable homes that have been delivered in that time. However, Liz Smith will be aware of some of the particular challenges in remote and rural Scotland, such as land availability, community capacity to bring forward proposals and ensuring that those proposals can get from pre-development to the development stage. Those are complex matters, which is why, in recognition that we need to do more, we have committed to developing a rural and remote housing plan that is dedicated to the needs of rural and remote Scotland.

That consultation will talk to communities the length and breadth of Scotland to make sure that we can get it right in every community, even for small-scale developments. That is, of course, backed up by the additional resources that we have made available.