Sectoral Survey into the Impact of Licensing on the Self-Catering Sector Across Scotland

The ASSC has revealed the findings of the survey on the Scottish Government’s short-term let consultation, and the likely impact of its proposed licensing scheme.

The ASSC has numerous concerns about the proposed regulations, believing that they will have profoundly negative consequences for the £723m self-catering sector.

Our survey on the consultation elicited nearly 1,200 responses and provided useful insights from an important component part of Scotland’s tourism offering.

  • 95% believe that the regulations should be delayed whilst the sector recovers from Covid-19 and the same number believe the regulations require greater parliamentary scrutiny.
  • 83% oppose the proposed licensing scheme for short-term lets, while 68% are not supportive of short-term let control zones.
  • Around a third (31%) of businesses would be rendered unviable if the current proposals for a licensing were introduced, while two-thirds (64%) felt it would have a negative impact.
  • Nearly half (49%) would leave the self-catering sector if the proposed licensing scheme was introduced and of those 33% would leave the property empty or use it for family & friends.
  • Respondents maintained that the impact of the regulations would not be limited to self-catering. Respondents were of the view that the impact of the proposed licensing scheme would also entail negative knock-on effects for supply chains, such as hospitality (89%), local activity providers (83%) and local attractions (85%). 66% feel that it would have a detrimental impact on guests.
  • The short-term let consultation takes place at a precarious time for self-caterers in Scotland. 94% of respondents have stated an estimated negative financial impact of Covid-19 to their business, while 63% are feeling pessimistic about their business right now.

Our members are clear that the current proposals are not fit for purpose, do not provide a proportionate and balanced regulatory framework, and are a real threat to their livelihoods. ASSC members are professional operators who are a longstanding presence in their communities – but particularly in rural and remote areas – providing an economic benefit for the local area and businesses. Given the devastating impact that Covid-19 has had on tourism, they are perplexed as to why this consultation and the regulations are proceeding at such a rapid pace given all that has occurred over the past 6-7 months, and when similar legislation (for example, the tourist tax) has been postponed due to the pandemic.

We remain greatly concerned that the haste of this work will not result in a well-designed and proportionate regulatory framework and could be one which may have negative consequences for our sector and Scottish tourism as a whole. The ASSC wants to work with the Scottish Government and MSPs to ensure a balanced and proportionate approach for business, tourism and local communities and would welcome the opportunity to speak with you on how we can achieve just that.

Read the full results: ASSC licensing survey

Read the press release.

Suggestions for Points to Make to MSPs regarding the STL Legislation

Suggestions for Points to Make to MSPs regarding the STL Legislation

Dear Member,

As you are aware, the Scottish Government are progressing with their consultation on short-term let regulation despite the impact of Covid-19 on Scottish tourism and the numerous restrictions that have been placed on our industry. The consultation closes on Friday 16th October and we would strongly encourage you to submit evidence if you haven’t already done so.

In tandem with this, you may wish to write to your local MSP to raise their awareness of the short-term let consultation, flagging your concerns with the manner in which it has been conducted and why it is proceeding at such a pace given Covid-19, as well as to highlight the negative consequences that will follow from the introduction of short-term let licensing.

Below you can find some key points to help inform your letter. This is focused on three areas: (a) concerns with the consultation process; (b) concerns with the lack of proper scrutiny; and (c) the consequences of the regulations.

Consultation Process

  • The consultation was only open for a little more than 4 weeks, as opposed to the standard 12-week process, at a time when many businesses are struggling for survival due to Covid-19 restrictions.
  • The short-term let consultation has been taken forward at a time when other pieces of key legislation, such as the Transient Visitor Levy, have been halted.
  • There is no reference in the consultation document to the impact of Covid-19 on Scottish tourism.
  • There is currently no Business Regulatory Impact Assessment to accompany the proposals on licensing and planning. We do not have an up to date assessment of what these regulations will cost operators, businesses and local councils.

Lack of Scrutiny

  • Introducing short-term let licensing and planning restrictions is not a straightforward task but one that necessitates detailed scrutiny of the proposed regulations.
  • The consultation has been truncated and there is a similarly quick timetable associated with the scrutiny of the secondary legislation which will be laid in Parliament in December 2020.
  • Proper scrutiny of the regulations matters as the self-catering sector is worth £723m to the Scottish economy and the livelihoods of operators and their families is at stake.

Consequences of the Regulations

  • The regulations will add more burdens and bureaucracy for a sector that is already regulated and one which is suffering from the impact of Covid-19 (including existing/contemplated restrictions). It will be the final straw for many operators across Scotland, including many in our rural and remote communities.
  • A licensing system is a blunt tool to fix a perceived and localised problem of amateur operators in Edinburgh, rather than being a solution that is appropriate for the whole of the Scotland, nor is it one that makes a necessary distinction between different types of visitor accommodation providers.
  • Due to the impact of Covid-19, the potential pitfalls and shortcomings of licensing come into sharper focus in two main respects: (a) the impact for resource stretched local authorities having to deal with an influx of tens of thousands of licensing applications; and (b) the impact any disproportionate licensing system could have on the recovery of Scottish tourism.
  • In terms of the economic impact, it cannot be limited to self-caterers alone but to the many businesses in local communities that benefit from the footfall of our guests (e.g. cafes, pubs, restaurants, farm shops, visitor attractions) and the wider supply chain associated with our properties (e.g. cleaners, housekeepers etc) if a regulatory framework is introduced that damages self-catering.

You can supplement and personalise your letter with your own lived experience of working in self-catering and how you believe these regulations will affect your business and livelihood.

You can find your local representatives by using the following tool on the Scottish Parliament website: https://beta.parliament.scot/msps/current-and-previous-msps

Thank you in advance,

Fiona Campbell, ASSC CEO