Brodies LLP Legal Opinion: Requirement for Planning Permission

ASSC Key Points Briefing: Brodies LLP Legal Opinion (November 2022)

  • In November 2022, Brodies LLP – a leading law firm in the UK – prepared a legal opinion for the Association of Scotland’s Self-Caterers regarding planning requirements for short-term holiday letting. You may find this opinion useful in response to any concerns raised by a planning authority regarding your property.
  • The paper opines that the requirement for planning permission for short-term holiday letting depends on whether the premises are situated within a short-term let control area. Licensing requirements are not made under the planning legislation and are not relevant to determining whether planning permission is necessary.
  • In all other areas, planning permission is not necessarily required for a change of use to short-term holiday accommodation. In fact, the question of a change in material use depends on the individual circumstances of each premises and planning authorities must take this into account.

Log into the members area for further detail and to download the full opinion

Cost of Living Survey

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-of-living crisis and impending licensing and planning control regulations.

  • The ASSC gathered feedback in October from nearly 1,000 short-term let operators across Scotland to determine where they are right now and what the immediate challenges relating to the cost-of-living crisis and short-term let regulations following the drastic implications of COVID.
  • The findings of this survey raise serious implications for the continued viability of many small tourism accommodation businesses in Scotland going forward, especially in rural areas, due to the perfect storm of increased regulation, changes in booking behaviour and rising costs facing self-caterers.
  • Nearly half of self-caterers are now considering closing their business over Winter 2022 for the first time due to the cost-of-living crisis, which will hugely impact Scottish tourism, while future bookings are expected to be much worse than pre-Covid.
  • A majority of businesses are still heavily concerned about the impact of short-term let licensing. The Scottish Government recently rejected proposals to delay the introduction of this despite the cost crisis and the fact that many resource-stretched local councils are not ready to establish their scheme.
  • The cumulative impact of these pressures on self-catering operators cannot be underestimated, with nearly four-in-ten reporting mental health problems as a result.
  • The ASSC sincerely hopes that policymakers take cognisance of these findings and do all they can to support small business through these challenging times.

SUMMARY

  • Nearly 1,000 (937) operators in Scotland completed the survey.
  • 41% of those surveyed are in the pre-retirement age bracket of 55-64 yrs and 76% within this age bracket are female.
  • The majority of short-term let operators tend to be located in rural areas which very often means higher living costs and additional challenges such as ferry issues.
  • Bookings for winter 2, spring 23 and summer 23 are looking much worse than pre-Covid. 54% of those surveyed say that Spring 2022 bookings are looking worse to much worse in comparison to 2019 (pre-covid).
  • The survey highlights a significant change in booking behaviour. Generally, this tends to be more last-minute bookings and less bookings overall. There are concerns that the emerging cost of living crisis will accelerate the cancellations.
  • The survey highlights that many operators (45%) are thinking of closing their business over the winter for the first time due to the cost-of-living crisis. This will impact considerably on the rural tourism economy including employment, retail, hospitality etc.
  • Additional cost of living costs will impact on businesses in a number of ways. A staggering 60% say that they will now have less to spend on fixtures, fittings and maintenance. This will impact on the overall quality of the tourism product offering in Scotland and the reputation of Scotland as a sustainable, quality destination.
  • Short-term let licensing continues to be a significant concern for the majority of businesses with over 70% concerned about the licence not being granted. Meanwhile, 87% consider the scheme to be ‘burdensome’ and 49% have considered stopping letting their property. A staggering 94% of those that might sell up say that their property would not be available for affordable housing.
  • 64% of businesses ask for clear and timely communications from the Scottish Government and local councils.
  • Following Covid, these businesses are having to navigate through STL licensing, associated costs and now the cost-of-living crisis, we asked in the survey how this is affecting their mental health. 39% of those surveyed are experiencing new mental health problems.

Read the full results: Cost of Living Survey October 2022

 

Chief Executive’s Report 2022

This has been another year of challenge, change and progress.

As Chief Executive, I wish to convey my thanks to the ASSC team for their continued dedication during these unprecedented times and for continuing to go the extra mile, working very long days over an incredibly long period to support our members.

Despite the challenges that we face, as an association, our vision is that the ASSC takes the leading role in supporting and promoting a vibrant and prosperous self-catering sector that is recognised as pivotal to the future of Scotland’s Tourism Economy. Our purpose is to empower our diverse and professional membership, enabling them to deliver exceptional experiences to guests. Our focus is on supporting individuals, businesses and communities in the promotion of Scottish self-catering as a sustainable, inclusive and responsible form of accommodation, at the heart of Scotland’s tourism offer.

This report highlights just some of our achievements over the past 12 months, many of which have been achieved in partnership with others. This is something we take great pride in.

The most significant challenge that we have faced over the last twelve months results from the decision made by the Scottish Government to introduce Short-Term Let Licensing. It has been a long journey since the regulatory discussion ramped up around five years ago when the Scottish Government began to examine the issue through their Expert Panel on the Collaborative Economy. Throughout that period, the ASSC has been proactive and constructive in its relationship with government, offering up alternative solutions but challenging when necessary; and in more recent times, we worked tirelessly to try and persuade government that licensing was the wrong approach. All of this involved hundreds of meetings with Scottish Government Ministers and officials, MSPs, councillors, and industry stakeholders. It included the circulation of briefings and evidence-based reports, not to mention attendance at endless workshops and working groups, as well as near constant press activity.

The ASSC maintain that the Licensing Order is unfit for purpose, lacks an evidence base and is based on groundless fears, anecdote and hearsay. The self-catering sector has been used as a convenient scapegoat for wider policy failures by government, especially on housing. In contrast, our proposal for a mandatory registration scheme with health and safety provisions had cross-industry and cross-party support and would have provided a robust and legally effective regulatory regime.

Right now, businesses offering short-term lets are facing a perfect storm: first, the looming imposition of licensing at a national level; second, planning control areas at a local level; third, the spectre of ongoing Covid-19 uncertainty and changes to consumer behaviour and fourthly, the significant challenges to business as a result of the Cost of Living Crisis. To compound matters, the recent Programme for Government made reference to the resumption of work on a Transient Visitor Levy. Those who have been treading water now fear being totally submerged.

It was not the most auspicious of starts to the year but the ASSC, as ever, have continued to keep fighting on these issues of such importance to our sector.

Read the full report: 2022_CEO