Short-Term Lets: Consultation

On 28 April 2019, the Scottish Government published a consultation seeking views on the regulation of short-term lets in Scotland.

The consultation followed a period of significant growth in short-term lets in a small timescale and the consultation set out the factual background, described the issues arising, outlined local authorities current powers to address them and presented an overview of regulatory approaches elsewhere in the world.

There were 1,086 responses to the consultation, of which 111 were from organisations and 975 from individuals.

Overall, a majority of respondents supported regulation for short-term lets in some form. Views were mixed as to whether there should be registration or licensing for short-term lets, although there was a degree of support for both elements to be introduced, with some support for a mandatory rather than a voluntary scheme. There was little support for a market-based mechanism.

Regardless of whatever regulation was introduced, a common theme was of the need for enforcement to be undertaken; and to be undertaken quickly where there was non-compliance. There were also a number of comments that local authorities will need additional resources to apply and enforce any regulation.

While there was some agreement for a national framework, there were calls for flexibility within this so that local authorities can apply what is most relevant to their area, its economy and the impacts of short-term lets. For example, some respondents differentiated between cities - in particular Edinburgh - with a high density of short-term lets within the city centre and where there are a number of negative impacts of short-term lets; and rural areas where short-term lets are perceived to cause fewer negative impacts and to be more necessary to the local economy. There were a number of comments that a 'one size fits all' approach will not suit the short-term let sector. Additionally, there were some comments that the negative impacts of short-term lets are felt most in Edinburgh and that actions necessary to deal with this in Edinburgh will not be relevant in most other parts of Scotland.

The Scottish Government published a report on the 2019 consultation and independent research on the impact of short-term lets on communities in October 2019.

Following careful consideration of the 2019 consultation responses and the evidence provided by independent research, in January 2020 the Scottish Government announced proposals:

• to establish a licencing for short-term lets, using powers under the Civic Government (Scotland) Act 1982, with a mandatory safety component which will apply to all short-term lets across Scotland;
• to prioritise work to give local authorities the power to introduce short-term let control areas under powers in the Planning (Scotland) Act 2019; and
• to undertake a review of the tax treatment of short-term lets, to ensure they make an appropriate contribution to the communities they operate in.