Hospitality boss warns Edinburgh could become 'laughing stock' due to short-term let scheme

Critics of Scotland’s short-term let regulations have warned Edinburgh will become a “laughing stock” due to the lack of accommodation for Fringe performers.

The Association of Scotland’s Self-Caterers blamed “bungled policymaking” as celebrities raised concerns about the access and costs of staying in the capital during Edinburgh’s Festival Fringe in August.

Hosts of short-term let properties, such as Airbnb and guest houses, were required to apply for a licence by October 1, 2023 to continue operating, despite concerns over the additional cost for businesses.

Comedian Jason Mansford and Gail Porter were among the high-profile names condemning accommodation costs in the city, arguing the soaring bills had left them “priced out” of performing.

Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, said the crisis was “predictable”, adding the reputation of the city and festival could be damaged as a result.

She said: “Edinburgh is renowned for its unique cultural offering but such bungled policymaking over short-term lets risks damaging its position as a place to visit and do business.

“A world-leading festival city should be more than able to accommodate comedians yet it risks becoming a laughing stock of its own making.

“Even at the 11th hour, industry stands ready to work with local and national government so we can fairly and effectively regulate the sector before irreversible damage is done.”

Ms Campbell added the industry had been “scapegoated” as a solution to wider housing challenges in Scotland and said just 105 secondary lets had been granted a full licence in the city.

She added: “This is a predictable mess. We consistently highlighted the dire consequences that would follow from a draconian approach to short-term let regulation and these forewarnings are becoming glaringly apparent.

“However, this may be the tip of the iceberg if yet more self-catering businesses close, with the difficulties faced this year being amplified in 2025.”

On Tuesday, former BBC presenter Gail Porter said “greed” had made it impossible for her to attend the festival later this year.

Writing on X, formerly Twitter, she said: Was so excited to go the @edfringe this year. But I have been priced out by the soaring costs of B&Bs. My home town. I feel so sorry for new young performers that won’t be able to afford accommodation. I’m gutted Edinburgh has done this. Greed is awful.”

Mr Mansford also described the situation as “pure greed”, arguing he would be operating at a loss even if his shows sell out.

The fringe said it was looking to “find solutions” to the issue.

A Scottish Government spokesperson said: “Short-term let licensing legislation gives licensing authorities powers to strike a balance between the needs and concerns of local communities and the wider economic and tourism benefits of short-term lets.

“The powers include the discretion for licensing authorities to grant temporary exemptions in recognition of the fact that large scale events – be they one-off major events, or annual events like the Edinburgh festivals – can result in a significant demand for accommodation over a short period of time.”