Licensing of the short-term lets sector in Scotland was due to be introduced in May in Scotland, however, it was recently announced that the application for licensing has been withdrawn.
With the short-term lets sector set to begin the journey back to business as usual over the coming months as COVID-19 restrictions ease, questions about how it should be regulated will continue.
Although regulation of short-term lets in Scotland won’t be coming into force this month, new proposals could be potentially be launched in the Summer.
What was proposed and why is it no longer likely?
From April, councils in Scotland were set to be given powers to license homes advertised on short-term let platforms (such as AirBnB). However, the plan for licensing was withdrawn in late February in response to strong opposition.
The regulations were set to be piloted in Edinburgh, which has a very active short-term rental market.
The system would have provided local authorities with the means to designate areas where planning permission would be required for properties to be let on a short-term basis. The regulation would also have required stricter health and safety measures in properties.
Opposition to the regulation from Scottish Land & Estates centred on the potential for rules to be implemented nationwide, rather than just in areas with high numbers of short-term rentals. It also suggested the plan did not account for the boost short-term lets provide for local economies.
The Scottish Government – provided the Scottish National Party wins the upcoming election in May – will now put a new proposal to Parliament in June.
If these measures are supported, local authorities will have until April 1 2022 to establish local versions of a short-term let licensing scheme with property owners having until April the following year to apply for a licence.