Licensing: Industry Briefing Recording Published

On 2nd December, the ASSC was joined by industry leaders on a session to discuss the Scottish Government’s Short-Term Let Licensing Proposals.

Panelists included:

  • David Weston, Chair, Scottish B&B Association
  • Gordon Bulloch, Scotland’s Best B&Bs
  • Kay Wilson, Destination Leader, Scottish Agritourism
  • Joanna Millar, Legal Director, Gilson Gray

Apologies were sent by:

  • Simon Ovenden, Policy Adviser, Scottish Land & Estates
  • Marc Crothall, Chief Executive, Scottish Tourism Alliance

230 people registered to join the session in 36 hours, and 125 have watched the recording since the event.

Watch the video here.

On 7th December, the Local Government, Housing and Planning Committee will take evidence on the Town and Country Planning (Short-term Let Control Areas) (Scotland) Amendment Regulations 2022 and the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2021 from —

Witnesses:

  • Fiona Campbell, Chief Executive, Association of Scotland’s Self-Caterers
  • Amanda Cupples, General Manager for Northern Europe, Airbnb
  • Shomik Panda, Director General, UK Short Term Accommodation Association
  • David Weston, Chair, Scottish Bed and Breakfast Association (SBBA)

Meeting Notes

SHORT-TERM LET LICENSING: ACT NOW TO PROTECT YOUR BUSINESS

Last week, the Scottish Government set out their revised short-term let licensing regulations. We were incredibly disappointed that they did not go further in responding to industry concerns, particularly as we put forward a proportionate and fair compromise, not to mention the fact that Scottish tourism is still facing huge uncertainty and remains in recovery mode – and as recent news shows, Covid continues to pose significant challenges.

Now that the licensing regulations have been laid in the Scottish Parliament, they will shortly be considered at the Local Government, Housing and Planning Committee and then voted upon by its members. It is likely that the short-term let regulations will be supported by the Committee but they will then head to a vote of all MSPs in parliament.

Members of the ASSC, alongside other small tourism accommodation providers like B&Bs, were instrumental in getting the Scottish Government to withdraw their licensing plans before a vote of all MSPs earlier this year due to the political uproar that ensued. We would like to thank each and every member who helped in that effort.

Make no mistake, the ASSC will continue to leave no stone unturned and lobby tirelessly on your behalf but we are now making an additional ask of you.

This will be the final chance to try and stop these damaging and ill-considered regulations. After years of regulatory discussion, it is unfortunate our views have been largely ignored. The government have also manifestly failed to listen to industry or legal experts, or the local councils that will be charged to deliver the legislation. But we need to make one last plea to protect small businesses in Scotland.

Here is what you can do to help.

  1. CONTACT YOUR MSPs
  • Please contact both your constituency and regional MSPs to highlight the threat to your livelihood from this onerous licensing scheme, note the positive impact your accommodation has had on your local area, and that the government simply hasn’t listened to small businesses or properly considered the ASSC’s exemption proposal for registered businesses.
  • Self-catering benefits the Scottish economy to the tune of £867m per annum and it is disappointing to say the least that policymakers are discriminating against our sector when we have benefitted local economies for decades.
  • As further background, some of the ASSC’s specific outstanding concerns with the legislation are:
  1. Clarity on Fees: there should be a cap on fees, not a scaled approach or just further guidance passed to councils. This would mirror the Scottish Landlord Register.
  2. Renewals: the process should operate on the assumption that a licensing application is renewed through self-certification, again like the Scottish Landlord Register.
  3. Neighbourhood Objections: all neighbourhood concerns over short-term lets should go through the existing system through better enforcement of anti-social behaviour legislation, as well as the use of noise monitoring devices.
  4. Inspections: council officers should not be allowed to turn up unannounced at a tourism accommodation business, especially when guests are in, but seek an appointment with the owner to provide access.
  5. Additional conditions: there should be an element of control over the additional conditions that local authorities could add into their licensing regime. Local councils should not be able to stipulate that they do not want short-term lets operating in tenemental properties, for instance, as this would be the return of overprovision powers via the back door.
  1. CONTACT YOUR COUNCILLORS
  • Short-term let licensing will not only have an adverse impact on our economy, they will also hit local councils at a time when they can least afford it – and the Scottish Government will not provide any additional funds for start-up costs.
  • In your correspondence, you should raise this vital local issue to councillors who may be unaware that the legislation will soon be voted on by MSPs. One thing they will be aware of is the local government elections in May 2022.
  • You need to convey that licensing will not only adversely affect tourism and local economies but will hit already stretched council budgets as this briefing makes clear: https://www.assc.co.uk/the-impact-of-short-term-let-licensing-on-local-authorities/. Moreover, you may find some of the comments from local councils highlighted here to be useful in your email: https://www.assc.co.uk/2021-short-term-let-consultation-responses/
  • You can find your councillors on your local council website.

The Scottish Government’s licensing legislation was withdrawn in February 2021, because it was not fit for purpose; but in December 2021, it remains unfit for purpose. Please implore your local representatives to act to support Scottish tourism and protect livelihoods by rejecting these anti small business regulations.

Thank you,

Fiona Campbell, CEO

 

Opinion Piece: Guilty as Charged

“As the newly appointed Chair of the leading trade body representing the Scottish self-catering sector, I am growing increasingly alarmed at the claim being made by some of our national and local politicians that licensing of short-term lets will help to improve access to affordable homes, despite assurances from the Cabinet Secretary for Housing in October, when over provision was removed from the draft SSI, that the rationale behind the proposals is not in fact driven by housing concerns.

“My first question in response to this claim is: how? Given the pronouncements made it is patently obvious that the claimants have not read the detail of the proposed regulations and paid scant attention to the deluge of evidence provided by the ASSC and the wider tourism sector.

“To be blunt, STL licensing is an irrational, illogical, and anti-business policy which has no chance of improving access to affordable homes.

“In a recent article in The Oban Times, the Convenor of the Holyrood Local Government, Housing and Planning Committee states that “the high number of short-term lets in popular tourist spots is leaving people struggling to find somewhere to live.” In that same article a Green Party spokesperson states that “it is time that short term lets are regulated to ensure that long-term housing is available and affordable for residents.” Other politicians representing areas from the Highlands and Edinburgh continue to make similar assertions, despite there being not a shred of evidence demonstrating a direct correlation between the concentrations of self-catering and bed and breakfast provision and the availability of affordable homes. Worse still, promulgation of the link between the two and the claim that licensing will solve the problem gives false hope to those individuals and businesses suffering the very real difficulties caused by the housing crisis. As such the politicians involved are stoking division and having a detrimental impact on community cohesion by persisting with their baseless attack on the livelihoods of thousands of micro-businesses across Scotland.

“The Scottish Government’s stated intention for STL licensing is that it will make sure short-term lets are safe, it will help with issues faced by neighbours from short-term lets, and it will help councils know and understand what is happening in their areas. It therefore seems that the micro and small businesses involved are being asked to pay for a data gathering exercise that may result in their being denied continuation of their livelihoods.

“It seems unlikely that even the advocates of this legislation can believe that it will have any measurable impact on the availability of affordable housing. The reason being that, on their own admission, the Scottish Government has no evidence or data to suggest it will. It seems, therefore, that those who believe regulation can achieve that ambition are highly likely to be sorely disappointed. To state otherwise seems disingenuous at best.

“The housing crisis is precisely that – a crisis. The conclusion that the licensing of legitimate micro self-catering businesses and bed and breakfasts can play even a minor role in solving the problems involved is no more than rhetorical hot air. The spike in house prices over the last two years has had nothing to do with short-term lets. According to local estate agents in the Highlands, the majority of property sales have been to people who want to move from the south to live permanently in local communities. The housing market is badly overheated with no shortage of purchasers who have no intention of letting their homes to tourists. Licensing will not make any difference to this economic reality in a post-Covid world. It’s also relevant that there has been a significant increase in the numbers of bed & breakfasts and guest houses coming on to the market and there is evidence to indicate that the prospect of licensing has prompted their owner’s decision to sell. As currently proposed licensing will have no impact on second homeowners who choose to leave their property empty for 40+ weeks of the year. To suggest otherwise is mere speculation.

“Meanwhile, there are politicians representing Highland and Edinburgh who accuse the ASSC of being protectionist in our call for the replacement of draconian licensing arrangements with a more proportionate registration scheme.

“If it is protectionist to point out that STL licensing will not produce any improvement in the availability of affordable homes, then – guilty as charged.

“If it is protectionist to point out that 55% of our members earnestly believe that the uncertainties inherent in a licensing scheme will force them to close their business, then – guilty as charged.

“If it is protectionist to point out that over 70% of self-catering and bed and breakfast operators and staff are women and licensing will have a disproportionate impact on their costs, workloads and subsequent livelihoods, then – guilty as charged.

“If it is protectionist to point out that at a huge majority of self-catering and bed and breakfast operators are owner occupiers living in their local communities and they will be the most detrimentally affected by Licensing, then – guilty as charged.

“If it is protectionist to point out that Local Authorities will need to recruit dozens of permanent new staff to set up and implement a Licensing scheme, following years of public service austerity and when Covid recovery has barely begun, then – guilty as charged.

“Perhaps local Councillors need to consider how this fact is presented to their electorate prior to the Local Government elections next May. Presenting licensing as a justified response to the housing crisis may be a difficult case to make in these circumstances.”

Adrienne Carmichael, Chair, Association of Scotland’s Self-Caterers

4th November 2021

Adrienne Carmichael Opinion Piece November 2021