The Scottish Government have announced new regulations affecting homeowners in Scotland who let their properties out on a short-term basis. The new rules are due to come into force in March 2022.
The regulations will give Local Authorities powers to regulate short-term lets, taking into account the interests of local communities, wishes of residents and local housing needs, whilst at the same time addressing the needs of local economies and tourism.
Why Are The Regulations Being Introduced?
While it is clear that short-term letting can provide a real boost to local economies, there are genuine concerns over a lack of housing (especially social housing) in some areas (for example in popular rural tourist hotspots) and issues with anti-social behaviour that can be associated with short-term lets, such as Airbnb. The new regulations are intended to address some of these concerns.
The regulations will cover the whole of Scotland, including island and rural communities, but there is to be a degree of flexibility afforded to Local Authorities in how the scheme is implemented in their area, taking into account local needs and concerns.
The topic has caused a great deal of debate throughout Scotland with many property owners voicing concerns about the potential negative impact the proposals could have on their business.
What Are the New Rules?
One of the new powers will enable Local Authorities to designate short-term let control areas (using powers at section 17 of the Planning (Scotland) Act 2019). What this means in practice is that tighter controls can be implemented and changes of use of properties to short-term letting status can be more strictly managed. Local Authorities will have powers to ensure that short-term lets are safe and to provide safeguards in relation to noise, disturbance and anti-social behaviour. Other considerations include the need for private housing in the area, the character of a neighbourhood and issues that potentially arise with properties being let out for inappropriate purposes.
What Does This Mean for Property Owners?
All Local Authorities will be required to introduce a licensing system for short-term lets. Every existing host and operator will need to apply for a licence by 1 April 2023 for each of their properties, and all short-term lets in Scotland must be licenced by 1 July 2024. There will be costs associated with applying for a licence. Currently there is no cap on application fees and these will be at the discretion of each Local Authority but it is estimated that the application fees will range from £214 – £426 for a licence of 3 years. It should be noted that a Local Authority can refuse to grant a licence at their discretion.
Each host will need to comply with various conditions before a licence is granted to them, most of which relate to safety matters, such as fire safety, gas and electrical safety certification, repair standards and levels of occupancy. It is also proposed that there will be mandatory licence conditions introduced with a view to ensuring compliance and to assist with enforcement of any breaches. The plan is that any advertising of a property for short-term let must include, for example, the license number, details of a valid Energy Performance Certificate and confirmation that the property is covered by adequate building and public liability insurance.
If you require any further information or advice in relation to short-term lets and how the new regulations may affect your business, please contact a member of our team.