6-month Delay for Existing Hosts Approved by MSPs at Decision Time

The SSI on the 6-month delay has now been approved by MSPs at Decision Time.

Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said:

“It is welcome news that MSPs have voted for the six-month delay for existing operators to apply for a short-term let licence. This provides temporary respite for hard-pressed Scottish tourism businesses but it is a sticking plaster policy as there are so many concerns to overcome if the £867m self-catering sector is to once again survive and thrive.

From exorbitant fees, conflating licensing and planning regimes, inadequate guidance, barriers to investment, stipulating the need for layout plans, carpeted properties or even adequate cutlery space, these regulations are a runaway train that the Scottish Government desperately needs to get back on track.

We hope that the government can use this opportunity for a reset and work collaboratively with industry to provide a supportive environment for small business, including a consideration of alternative means of achieving the policy objectives rather than the current onerous scheme.”

Rob Dickson, VisitScotland’s industry and destination development director, said:

“This is a welcome development that acknowledges the challenges that the sector is facing at present through the general rise in the cost of doing business.

“The small accommodation sector is a key contributor to both the Scottish economy and to the sustainable growth of the tourism industry.

“The extension granted today will create an opportunity for greater clarity to be provided in both the national guidance for short-term let licensing and in the guidance produced by individual councils.

“In turn, this should ensure that existing operators do not have to provide unnecessary information or incur extra costs in making their application. In all, this should ensure greater confidence for operators in what is required of them and a smoother process for councils to manage.

“We’re committed to helping both new and established businesses and are providing clear information on our website to help them understand how the licensing scheme applies to them.

“Our high-quality accommodation is one of the things that makes Scotland such a special destination and the diverse range on offer caters well to visitors with different needs and budgets looking for a unique experience.

“There are encouraging signs of interest in Scotland for this summer including from international visitors who tend to stay longer and spend more in our local communities; every accommodation provider stands to benefit from this interest.

“As we focus on the industry’s recovery, we’ll continue to work closely with the sector and their representatives to support this vital part of Scotland’s visitor economy.”

Scottish Housing News, Tourism sector welcomes extension for existing short-term let operators to apply for licence, 02/03/23

Scottish Business Insider, MSPs approve six-month extension for short-term let legislation, 02/03/23

 

Short-Term Let PQs

The following Parliamentary Questions have been asked of the Scottish Government in light of new licensing legislation.

  • S6W-15259: Jackie Baillie, Dumbarton, Scottish Labour, Date Lodged: 21/02/2023

To ask the Scottish Government what the current status is of the (a) Principles Agreement between Scottish Government and Business and (b) Joint Taskforce on Business Regulation, and what (i) actions, (ii) outcomes and (iii) regulatory changes have been agreed by each initiative.

Answered by Ivan McKee: The Business Principles Agreement, jointly developed with business, was published in December 2021 to cover the current five year Parliamentary term. The Agreement applies across all Scottish Government policy areas and provides a framework to enable more effective joint working between the Scottish Government and business though greater co-development, collaborative delivery and collective assessment of policies impacting business.

During 2022 Ministers had almost 1,250 engagements with business, an average monthly increase of 5% on the COP26 boosted average from May to December 2021. In addition business experience informed development of our National Strategy for Economic Transformation Delivery Plans, while a number of Industry Leadership Groups (ILGs) were set-up or refreshed during 2022 to deepen our sectoral connections, and I established an ILG Chairs group to foster cross-sectoral collaboration and sharing of experience.

The establishment of the Joint Taskforce on Business Regulation provides a further best practice application of the Principles approach with the majority of Agreement signatories being Taskforce members. The Joint Taskforce is co-chaired by myself and CoSLA Spokesperson for Environment and Economy Cllr Gail Macgregor and has so far met in December 2022 and February 2023.

Business organisations and regulatory stakeholders have set out what they would like the group to look at and this will be reflected in the Terms of Reference, with members acknowledging that there is ongoing work in many areas to address the concerns they have raised around specific regulations. The Joint Taskforce will look to identify the existing mechanisms for discussing these regulations before considering and suggesting what interventions might be most appropriate. We will publish minutes and papers on the Scottish Government Website.

The Taskforce has also agreed to look at ways of identifying and demonstrating the cumulative burden of regulation on businesses and members have been asked to consider and provide feedback on the Business Regulatory Impact Assessment approach to help improve the process for developing new regulations in future.

  • S6W-15264: Willie Rennie, North East Fife, Scottish Liberal Democrats, Date Lodged: 23/02/2023

To ask the Scottish Government, further to the Local Government, Housing and Planning Committee’s consideration, at its meeting on 7 February 2023, of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) (Amendment) Order 2023, what assessment it has made of whether the Festivals Edinburgh recommendations, included in its written submission, to (a) exclude home-sharing and home-letting from the scope of the Order for major events and (b) waive requirements for a licence where home-sharing or home-letting activity occurs for less than six weeks each year could undermine the health and safety rationale for the Order.
Current Status: Expected Answer date 09/03/2023

  • S6W-15265: Willie Rennie, North East Fife, Scottish Liberal Democrats, Date Lodged: 22/02/2023

To ask the Scottish Government what its response is to recently reported comments made by venue operators at the Edinburgh Festival Fringe, concerning short-term let regulations, that “unless secondary letting is also available in all types of property, including tenement stairs, there will simply not be enough accommodation for August’s Festivals”.

Shona Robison: Regulation of short-term lets is vital to balance the needs and concerns communities have raised with wider economic and tourism interests. Local authorities are responsible for developing policies on short-term lets in line with the short-term let regulations, and other relevant factors such as feedback received through local consultations, and Scottish Government short-term lets guidance.

  • S6W-15120: Miles Briggs, Lothian, Scottish Conservative and Unionist Party, Date Lodged: 16/02/2023

To ask the Scottish Government what plans it has to develop an amendment to legislation on short-term lets to provide for home or house sharing for a defined time period.
Current Status: Expected Answer date 16/03/2023

  • S6W-14444: Alexander Burnett, Aberdeenshire West, Scottish Conservative and Unionist Party, Date Lodged: 27/01/2023 R

To ask the Scottish Government how much each fit and proper person test, carried out by Police Scotland as part of short-term let licensing applications, costs the service.

Answered by Shona Robison (06/02/2023): The Scottish Government does not hold this information. Licensing schemes are administered by licensing authorities on a cost recovery basis through the collection of application fees.

To ask the Scottish Government how much each fire safety check carried out by the Scottish Fire and Rescue Service as part of short-term let licensing applications costs the service.

Answered by Elena Whitham: This information is held by the Scottish Fire and Rescue Service.
  • S6W-13881: Jamie Greene, West Scotland, Scottish Conservative and Unionist Party, Date Lodged: 12/01/2023

To ask the Scottish Government what discussions it has had with the (a) short-term lets sector and (b) hospitality sector about whether 12 months is an excessive amount of time for local authorities to process short-term lets applications, and whether there are plans to reduce this timescale.

Answered by Shona Robison: Our 2021 consultation included draft guidance explaining the rationale for licence application determination times. Licensing authorities only have 12 months to determine applications made by existing hosts (those operational before 1 October 2022) during the transitional period. This is to support licensing authorities to manage the initial volume of applications they receive. During this transitional period, existing hosts are able to continue operating whilst their application is being determined.

For new hosts (those commencing operation on or after 1 October 2022), the usual 9 month determination time set out in the Civic Government (Scotland) Act 1982 applies. We understand many local authorities are prioritising these applications to provide new hosts with a timely outcome. We have no plans to alter either timescale, however, as we have already indicated, we will conduct a review of the scheme in early 2024.

  • S6W-13880: Jamie Greene, West Scotland, Scottish Conservative and Unionist Party, Date Lodged: 12/01/2023

To ask the Scottish Government how many staff in each local authority are working on processing short-term lets licensing and applications.

Answered by Shona Robison: The Scottish Government does not hold this information. The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 requires local authorities to establish and run licensing schemes for short-term lets in their areas. Information on staffing levels dedicated to short-term let licensing within each local authority will be held by individual local authorities, and vary based on a number of factors, including volume of activity and approach to physical property inspections.

  • S6W-13878: Jamie Greene, West Scotland, Scottish Conservative and Unionist Party, Date Lodged: 12/01/2023

To ask the Scottish Government how many applications local authorities have received for short-term lets licences, and how many have been (a) approved and (b) rejected.

Answered by Shona Robison: I refer the member to the answer to question S6W-12707 on 12 December 2022. 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

ASSC Submits Written Evidence to Local Government Housing Planning Committee January 2023

The ASSC has submitted written evidence to Local Government Housing Planning Committee (January 2023).

The ASSC is thankful for the opportunity to provide our perspective on the impact of the proposed six-month delay on short-term let licensing applications for existing operators and how far this goes toward meeting our concerns. We thank the Committee for its commitment to give further scrutiny to this topic. This evidence sets out our outstanding concerns not only on short-term let licensing but on planning policy.

We welcomed the recent announcement by the Scottish Government on the six-month licensing extension, as set out the Cabinet Secretary for Housing’s letter (7 December 2022) to the Convener of the Scottish Parliament’s Local Government, Housing and Planning (LGHP) Committee. We further appreciate the Deputy First Minister’s announcement of the establishment of a Joint Regulatory Taskforce with COSLA, local authorities, business stakeholders, and regulatory agencies to consider the differing impacts of regulation on business, anticipating that the Taskforce will prioritise short-term let licensing as one of the first regulations to review in the New Year.

The delay has been warmly received by our membership as it provides much needed reprieve during challenging times for business. However, real and pressing concerns still remain about short-term let licensing and we hope that we can work in partnership with the Scottish Government and local authorities to resolve these for the benefit of Scotland’s tourism sector. The ASSC also believes that the delay provides an opportunity to take stock, assess the impacts related to the regulations, and then work constructively to ameliorate the outstanding issues. We provide a number of recommendations which we hope will be given consideration by policymakers.

Many councils have now published their finalised licensing schemes. From our analysis of Scotland’s 32 local councils, we have concerns in relation to:

  • The various discrepancies seen across local authority areas, including on fees, layout plans etc;
  • Council licensing policies which are ultra vires in nature; and
  • Instances where planning considerations going too far.

More broadly, we have reservations regarding barriers to investment, new operators having to wait to open until a licence is granted, problems associated with bookings, insurance and front-loaded investment amongst other things.

The Cabinet Secretary for Housing Shona Robison has insisted that licensing “will not be onerous for those who provide short-term lets.” However, those working in the industry would contend otherwise, as this paper makes clear.

Nonetheless, the ASSC welcomes the Scottish Government’s correspondence with local authorities on 15th December 2022 to seek engagement to ensure that remaining implementation challenges are addressed: “We understand that local authorities have worked quickly to launch the scheme in time for October and there may now be opportunity to refine guidance and local authority policies, taking into account feedback gathered in the early months since the launch.”

We now need to work together to ensure that the regulatory framework functions effectively for all stakeholders involved in Scotland’s vital tourism industry.

Executive Summary

  • The ASSC has operated for 44 years with 1,700 members across Scotland.
  • Despite the 6-month licence postponement very real concerns remain about short-term let licensing’s viability.
  • Licensing has produced an array of council-by-council discrepancies and inconsistencies in the application and interpretation of the new law.
  • In some authorities planning is duplicating what should be a licensing role, retrospectively refusing operators with no history of complaint precluding the ability to apply for a licence.
  • The current approach is fostering barriers to investment with new operators having to wait to open until a licence is granted and problems associated with bookings, insurance and front-loaded investment.
  • Bookings are currently down. Operators are not opting to participate due to uncertainty.
  • 87% have yet to apply for a licence despite the timeline for implementation.
  • 89% concerned about the cost of doing business.
  • Licence costs vary hugely across Scotland with CEC charging a multiple of the average and well in excess of the BRIA estimated cost.
  • There is no consistency in the length of the licence with CEC setting it at one year. This makes it extraordinarily expensive to maintain operations and forward plan beyond a maximum of a 12-month booking calendar at the point of renewal.
  • Councils have variously exceeded the legal power given in law to create additional ‘perverse and unreasonable’ clauses.
  • Rebuttal presumption has emerged as a major problem for the bulk of operators across both planning and licensing regimes, creating further uncertainty.
  • New entrants to short-stay provision are significantly disadvantaged by the current licensing regimes, reducing competition.
  • The law makes for either a PRT or an STL licence. This inflexibility fails to account for many exceptions which do not fit with either scenario.
  • Councils are likely to struggle to meet the demand in a timely manner for licences or planning consent when operators do decide to apply.

Read the full paper: Evidence to LGHP Committee January 2023.