Scottish govt to provide short-term let regulation powers - Mortgage Strategy

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Local authorities are to be given the ability to regulate short-term lets, such as AirBnB, where they decide this is in the interests of local communities, says the Scottish government.

Housing minister Kevin Stewart announced the new licensing scheme in the Scottish parliament, which is expected to come into force in spring 2021.

The new measures will include a mandatory safety requirement covering “every type of short-term let.” It will also enable councils to apply further conditions to address the concerns of local residents.

Councils, under the new licensing scheme, will be able to designate control areas so that planning permission will always be required for the change of use of whole properties for short-term lets.

Housing minister Kevin Stewart says: “Short-term lets can offer people a flexible travel option and have contributed positively to Scotland’s tourism industry and local economies across the country.

“However, we know that in certain areas, particularly tourist hot spots, high numbers of short-term lets are causing problems and often make it harder for people to find homes to live in.

“That is why we are empowering local authorities to implement a system that works for their area. By giving councils the power to set conditions around short-term lets licences and put in place planning control areas to tackle hot spots, communities across Scotland will be able to decide what is best for them and their local economy.”

Arla Propertymark chief executive David Cox comments: “It is positive to see that the Scottish government are taking steps to regulate short-term lets. In some urban areas, the supply of local housing is under intense pressure and as the private rental sector becomes increasingly regulated, landlords are moving further towards the less regulated short-term letting space which further reduces this supply.

“This can also result in lower quality accommodation for tenants and overall creates a vastly uneven playing field.

“By further regulating the sector, local authorities will be able to control the number of short-term lets in Scotland, but also ensure that effective health and safety requirements are put in place to protect those seeking a short term let.”

Short Term Accommodation Association UK director general Shomik Panda adds: “Whilst we are disappointed that the government has felt it necessary to introduce a mix of initiatives that could lead to an uncertain and fragmented regulatory environment in Scotland, we remain positive about the industry and will work constructively to ensure that the new rules will be workable when they come into effect next year.

“It is important that the new discretionary powers are not used in a way that inhibit the ability for individuals to earn valuable income and act as a deterrent to potential visitors, thus damaging the valuable contribution short term rentals make to the Scottish economy.

“We hope that councils will engage with us and other representatives of the sharing economy before implementing any new discretionary regulations. We firmly believe that any regulations introduced should be proportionate and should not disadvantage the vast majority of short-term rental hosts and guests who behave responsibly.”


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