Use of Music in Short-Term Let Accommodation – ASSC Announce Significant Changes to the Discretionary Exemptions

After well over a year of negotiations with PPL / PRS,  we are pleased to announce some significant changes to the discretionary exemptions. The team who carried out the negotiations consisted of the ASSC alongside the Professional Association of Self-Caterers (PASC UK), The Tourism Alliance and UK Hospitality (England).

Any business with three or less properties of any size on a single site will now be exempt (previously it was a single property with three bedrooms or less). This will make a huge difference for vast swathes of the sector.

Fiona Campbell, CEO ASSC says: “We’re absolutely delighted to share such a positive outcome with our members which will make a considerable difference to many. Having worked on this for such a long time, we are pleased with the pragmatic and proportionate approach that has been taken and to have been able to work in collaboration with PPL PRS, the Tourism Alliance, Professional Association of Self-Caterers (PASC UK) and UK Hospitality (England).”

PPL PRS choose not to charge a royalty for the use of music (including TV and radio) in self-catering apartment(s) or holiday cottage(s) etc. where all of the following criteria is met:

  • The accommodation consists of three self-catering units* or fewer, irrespective of the number of bedrooms in each.
  • The premises is the sole holiday let, self-catering apartments, holiday cottage business operated or owned by the proprietors
  • Facilities are only available to resident guests (and, in the case of holiday premises, the proprietors)

The fee structure is based upon the Small Residential Hotels and Guest House Tariff. We did not manage to get a dedicated Self-Catering Tariff, although we are still working on this.

We have example case studies of what charges might look like for larger business, which are considerably less than some of the charges previously levied. For example, an operator with 4 properties in a single site would be paying £61.77.

PRS Higher Rate Royalty:

If an operator has not applied for and obtained PRS for Music’s licence before musical performances commence, a higher (standard rate plus 50%) royalty rate will be charged and payable for the first year of the licence. After the first year of the licence, the standard royalty rate will be charged and payable.

We have negotiated an ‘amnesty’ for the first-year surcharge of 50%, if operators proactively contact PPL/PRS and pay before the end of March 2023. For this to apply you will need to contact PPL/PRS as described below and pay by 31 March 2023. If a non-exempt operator proactively contacts PRS PPL and applies and pays for a licence before 31 March 2023, PRS PPL have agreed to waive the 50% surcharge. Quote PPLPRSMAR23.  You will need to proactively contact PRS PPL for this to be applied.

PRS PPL can be contacted, and licences applied for via their website https://pplprs.co.uk or by phone on 08000 720 808.

Full details of the exemptions and FAQS can be found here

Guidance updated 18.01.23

The Association of Scotland’s Self-Caterers (ASSC) write to the Scottish Government seeking support to address outstanding issues relating to short-term let licensing

SHORT-TERM LET LICENSING IN SCOTLAND 

The Association of Scotland’s Self-Caterers (ASSC) write to the Scottish Government seeking support to address outstanding issues relating to short-term let licensing

In light of the 6 month extension in terms of short-term let licensing, Fiona Campbell, ASSC CEO has written to the Cabinet Secretary for Social Justice, Housing and Local Government, Shona Robison to ask that the Scottish Government use the time to take stock and assess the impacts related to the regulations, and then to work constructively to ameliorate the outstanding issues.

The letter has also been sent to the following:

  • Deputy First Minister, John Swinney MSP
  • Minister for Business, Trade, Tourism and Enterprise, Ivan McKee MSP
  • Paul Mclennan, MSP East Lothian
  • Euan Donald, Local Government Committee
  • Local Government Committee

The Association of Scotland’s Self-Caterers (ASSC) welcomes the recent announcement that the Scottish Government will provide a six-month extension for existing operators in terms of short-term let licensing applications, as set out in your letter (7 December) to the Convener of the Scottish Parliament’s Local Government Committee.

This 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 councils to resolve these for the benefit of Scotland’s tourism sector.

The ASSC further 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. Many councils have now published their finalised 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; and
  • New operators having to wait to open until a licence is granted.

Read the letter in full here.

Consultation: Short-term Let Planning Guidance for Edinburgh

The ASSC welcomes the opportunity to respond to City of Edinburgh Council’s consultation on short-term let planning guidance. As the main trade association for the self-catering sector in Scotland, the ASSC hopes that our expertise and insight can help inform the approach taken by the Council.

The consultation closes on 22nd December.

We have always strived to work collaboratively and proactively with both local and national government stakeholders to ensure a balanced and proportionate outcome for all. We wish to make clear that the ASSC is not averse to regulation; but we do challenge policies that are pursued while lacking a firm evidence base which will damage the livelihoods of our members.

It is with considerable regret that there is once again a presumption of bad practice attributed to the short-term letting sector by City of Edinburgh Council. The proposed planning policy is unfair, disproportionate and discriminatory, setting criteria that amounts to a de-facto ban on short-term letting despite all assurances to the contrary. By identifying only a small number of limited circumstances where short-term lets are to be permitted, for example those with a main door in an area that is “commercial” in character, this will mean that the vast majority of short-term lets will be refused, leading to an exodus of small tourist accommodation businesses, severely impacting the local economy which depends on tourism.

Overall, the ASSC believes that the proposed planning policy should be rejected on the following grounds:

  • It is disproportionate in nature, lacks coherence and balance, and relies on assertions and anecdotes rather than a firm evidence base;
  • It will harm Edinburgh’s tourism related economy at a time when it should be supported to recover, and will all but remove a key source of accommodation that is imperative to the viability of the Festivals; and
  • It fails to properly consider the economic impact of the draft policy which will cost jobs and livelihoods in a sector that provides a £70m annual boost to the city.[1]

It is our recommendation that within a Short-term Let Control Area, planning permission should be granted:

  1. Where extensive refurbishment of a long-term empty dwellinghouse is proposed to bring the building back into active use.
  2. The proposal is for the upper floor(s) above a commercial unit.
  3. It is an established short-term secondary let property in a long-established dwellinghouse.

‘Established short-term secondary let property’ means:

A dwellinghouse that has been trading as a short-term secondary let property before the first date of the first approval at a Council Committee meeting proposing the establishment of a short-term let Control Area.

Read the ASSC’s submission: ECC STL Planning Guidance consultation response 12.12.22

[1] ASSC, Economic Impact of the Self-Catering Sector to the Scottish Economy (2021). Url: https://www.assc.co.uk/wp-content/uploads/2021/09/Economic-Impact-Study%E2%80%93Scotland.pdf