The Local Government, Housing and Planning Committee meets this morning (19th November) to discuss the 2024 Short-Term Lets Implementation Update.
The short-term let licensing scheme in Scotland has drawn criticism from both local authorities and the industry, with concerns spanning administrative, economic, and regulatory issues:
Criticisms from Local Authorities
- Short Determination Period: The nine-month timeframe for processing complex applications is deemed insufficient.
- Planning and Licensing Disparities: Confusion arises from inconsistencies between planning and licensing authorities, particularly regarding enforcement actions and permissions.
- Enforcement Cost Recovery: Licensing authorities cannot recoup enforcement costs associated with unlicensed premises, hampering effective regulation.
- Ambiguity Around Home Swaps: Uncertainty exists about whether home swaps require a licence and the associated obligations.
- Transfer Licence Processes: Procedures for transferring licences lack clarity, especially regarding personal information collection.
- Temporary Exemption Criteria: Guidance on mandatory conditions for temporary exemptions is inconsistent.
- Regulatory Gaps: Concerns persist that the regulations may not sufficiently address serious and organised crime.
- Objection System Complexity: The current system for submitting objections is seen as overly complicated and inaccessible.
Criticisms from the Industry
- Economic Impact on Tourism: Stakeholders warn the regulations could cause “irreversible damage” to Scotland’s tourism sector, increasing visitor costs and reducing competitiveness.
- Administrative and Financial Burden: Requirements for detailed applications, stringent safety standards, and associated fees disproportionately impact small businesses, especially in rural areas.
- Reduction in Accommodation Supply: Many operators are considering leaving the market due to the burdens of compliance, reducing available accommodations for tourists.
- Ineffectiveness in Addressing Core Issues: The scheme is criticised for failing to solve housing shortages or anti-social behaviour, potentially driving operators into an unregulated black market.
Overarching Concerns
Both groups highlight a need for improved clarity, reduced administrative burden, and better alignment of regulations with intended outcomes. Local authorities struggle with enforcement and operational inefficiencies, while the industry fears economic harm and decreased market viability. Together, these critiques suggest that the licensing framework may require significant revision to balance its goals with practical implementation and economic sustainability.
Read more.