September 2022 - Page 4 of 7

Short-Term Let Licensing Fees

Posted on September 14, 2022May 14, 2024 by Fiona Campbell

Based on information by local councils, they ASSC has analysed the short-term let licensing fees published so far which strongly indicates that the figures have not been set on a cost recovery basis. For those secondary lets accommodating four or more occupants, the average fee for a license is over £1,000 which will have implications for the viability of many businesses.

The Scottish Government’s More Homes Division have suggested that “the majority of the fees published so far by local authorities … fall within the estimate of £218 to £436 for a three-year licence predicted in the Scottish Government’s Business Regulatory Impact Assessment, and follow our guidance to tailor according to licence type and accommodation size”.
However, regardless of theses assurances, it is clear that they are clearly far higher than Landlords Register Fees, of which there are three: Principal Fee: £68; Property Fee: £16 (per let property); and Late Application Fee: £137.
Approximately twenty (20) local councils have provided information regarding the level of fees for short-term let licensing thus far.
The ASSC believe that there is strong evidence to suggest that fees are not being set on a cost recovery basis, with large variations seen throughout Scotland.
As Table A below shows, the average fees for both homesharing/letting and secondary letting for those accommodating more than 4 occupants averages above £1,000. Such costs – coupled with compliance with existing regulation as well as energy price increases – may force some operators out of business.
Additional costs will have to be passed onto guests in a price sensitive market. If this becomes too prohibitive, visitors simply won’t choose to holiday using self-catering in Scotland, thereby damaging a key component part of our tourism industry.

Table A: Fees Compared – Homesharing/letting vs Secondary Letting

Homesharing/letting 3 year license

Secondary Letting 3 year license

Fees range from £125 to £3600.

Median = £1737
Average across all occupancy numbers = £817
Average up to 4 occupants = £396.35
Average from 4-10 occupants = £1006

Fees range from £250 – £5869.

Median = £2809
Average across all occupancy numbers = £880
Average up to 4 occupants = £421
Average 4 occupants or more = £1274

The secondary letting figures for City of Edinburgh, Dundee City Council and Perth & Kinross Council are particularly stark when compared to other local authorities for equivalent sized properties.
Edinburgh: 11-15 occupants is £3,872 for a one-year license and for 16-20 occupants, it is £5,264;
Dundee: £3,100 for 12-20 occupants on a three-year license; and
Perth and Kinross: £1,600 for 11+ occupants.

The following table sets out the licensing fees that have been published so far: FEES v8

North Ayrshire Short-Term Let Licensing

Posted on September 12, 2022 by Fiona Campbell

The ASSC has received a note to all respondents to the North Ayrshire Council Short-Term Lets Licensing Policy Statement consultation:

It was intended that the draft Licensing Policy Statement would be discussed at the Licensing Committee meeting set for Wednesday 14 September 2022. However the consultation on the draft LPS has received an unprecedented amount of public comment, raising many issues, so in order to give the matter proper consideration the Convenor has directed that the matter will instead be discussed at a Special Meeting of the Licensing Committee, to be set just for this. That Special Meeting is likely to be on Tuesday 27 September 2022.

The date and time of that Special Meeting, and the agenda and related documents, will be available on the Council website:

https://north-ayrshire.cmis.uk.com/north-ayrshire/CommitteesMeetings/Committees/tabid/62/ctl/ViewCMIS_CommitteeDetails/mid/381/id/142/Default.aspx

The meeting will be open to the public.

In order to assist ‘Existing Hosts’ to benefit from the special rules which allow ‘Existing Hosts’ to benefit from the special rules which allow Hosts who are currently using particular accommodation without a Licence (these are called “Transitional Provisions”), the Council will soon be adding to their website:

https://www.north-ayrshire.gov.uk/business/licences-and-permits/short-term-let-licence.aspx

details of a free-of-charge non-statutory scheme to assist “Existing Hosts” by issuing ‘letters of comfort’.

The website will include a Request Form which ‘Existing Hosts’ can use to ask the Council to confirm their ‘Existing Host’ status in relation to particular accommodation. The Council are setting-up this procedure so that the Hosts will have an ‘official’ document to show guests, listings agencies and insurance companies that they are currently entitled to operate without a Licence. The Council are doing this without any legal obligation to do so.

It is important to note that:

the Request Form is not a ‘licence application’,
the Confirmation (if issued) is not a ‘licence’,
the issue of Confirmation does not remove the Host’s need to apply for a Licence no later than 31 March 2023, and
the Confirmation can only apply to the particular accommodation described in the request (it is possible that a person might be an ‘Existing Host’ in relation to one house, but not in relation to another).

What happens after that date depends on what the Hosts do:

If they apply for a Licence for that accommodation no later than 31 March 2023, they can continue operating without a Licence for as long as it takes the Council to make a decision on their applications;
If they don’t, they must stop operating until and unless the Council has granted their applications.

Regards,

Chris Pollock

Licensing Administration Officer

North Ayrshire Council

Sent on behalf of Raymond Lynch

Senior Manager (Legal Services)

Clerk to the Licensing Committee

North Ayrshire Council

The Cost Crisis: What the Scottish Government can do to help Scottish Tourism Businesses

Posted on September 12, 2022May 14, 2024 by Fiona Campbell

Scotland’s tourism industry – of which self-catering plays an integral part – has already been through one of the most challenging times due to the impact of Covid-19 but now faces further uncertainty and economic difficulty with the cost crisis.

In recent days, both the Scottish and UK Governments have announced a package of measures to address rising energy bills which are of real concern to people and businesses across the country – but more can and should be done.
The ASSC welcomes the commitment from the Scottish Government to work with the business community to address challenges around increased costs and economic disruption. To this end, they have engaged tourism stakeholders on recommendations and views in respect of existing, new and pending regulation which could help offset the significant increase in direct costs, particularly energy.
Below you can find a summary of the proposals we have put to the Scottish Government. This has been supported by the Scottish Tourism Alliance.

ASSC Proposal to Scottish Government

Context

Short-term let licensing will come into effect on 1 October 2022, introducing new red tape for legitimate micro businesses. There is significant concern around the cost to businesses of short-term let licensing (as well as planning control areas).
Costs will include the licence fee itself (some councils have still to set out their proposed fees; while others are charging in excess of the figures provided in the Scottish Government’s BRIA) and layout plans (approx. £600 per premises) amongst others. This is in addition to existing compliance costs of risk assessments, EICRs, PAT testing, fire safety, insurance etc. The cost of planning permission applications has increased this year significantly. Associated fees for layouts and plans add to the expense.
These additional costs have fuelled a real feeling of uncertainty for self-caterers across Scotland. This, coupled the media coverage of the cost of living crisis, is already having a negative impact on operators and holidaymakers, with forward bookings already down in the autumn and winter this year.

Our Ask of the Scottish Government

The ASSC believes that the Scottish Government should delay the forthcoming legislation, by simply passing an SSI, amending the existing order to extend the date of implementation. For absolute clarity, we are not requesting that licensing is scrapped – Parliament has expressed its view on that matter – just that it is delayed.
This happened to legislation during the Covid crisis. The situation we find ourselves in now is arguably worse situation for tourism businesses in the medium to long-term.
Pausing the introduction of licensing would show an understanding of the immediate pressures on operators. This would be hugely welcomed by our members and would show that policymakers are supporting legitimate businesses during unprecedented times.

Our small but not insignificant ask is that short-term let licensing should be paused to allow the sector to recover from the pandemic and deal with the significant challenges ahead. Businesses and livelihoods depend on it.