Edinburgh Airbnb-style accommodation: new figures show licensing system deterring landlords, claim Tories

New figures on Airbnb-style accommodation in Edinburgh show new licensing requirements are making landlords pull out of short-term letting, Tories have claimed.

Data released under freedom of information legislation shows 86 applications have been made to the city council for short-term let licences with only 32 of these granted. The new licensing scheme for short-term lets was introduced amid concerns about loss of permanent housing and complaints about anti-social behaviour. It requires hosts to display energy performance ratings on listings and have adequate buildings and public liability insurance as well as various fire and gas safety precautions.

But it has been vigorously opposed by organisations like the Association of Scotland’s Self-Caterers (ASCC) and Scottish Land and Estates, who argue the new system is unfit for purpose and based on groundless fears, anecdote and hearsay. They have also claimed that “excessive bureaucracy and spiralling costs” could lead to many businesses closing.

The deadline for hosts of existing Airbnb-style properties to register with the scheme was extended from the end of March to the end of October this year. Ministers said the delay was due to concerns over the cost-of-living crisis. The aim is to have all relevant properties fully licensed by July 2024.

Freedom of information responses, obtained by the Scottish Conservatives from 31 of Scotland's 32 councils, showed only one in five of the 3,148 applications made to local authorities had been approved. The Edinburgh approval rate was higher, at 37 per cent, but Lothian Tory MSP Miles Briggs highlighted the low volume of applications, given the estimated high numbers of short-term let properties previously available in the city.

He said: “The fact that so few short-term let applications have been made to Edinburgh council just goes to demonstrate how poorly executed this policy has been on top of the six-month extension ministers have been forced to implement. With an estimated 1,800 short term lets in the Capital, many hosts will have just decided it's too much of a hassle.

"What is equally concerning is the small number of applications granted by Edinburgh council, showing a lack of resources for processing them. This is yet another example of poorly thought through SNP-Green Party policy with unintended consequences."

A Scottish Government spokesman said: "These figures from March 2023 represent a snapshot in time - publicly available information now indicates that over 1,000 short-term let licences have been granted, with more being processed every day.

"Anyone operating short-term lets prior to October 2022 has until 1 October 2023 to apply for a licence, and these hosts can continue operating while their application is being determined by local authorities.

"Licensing regulation ensures short-term lets comply with consistent safety standards across Scotland. It also 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 housing minister recently met with the Association of Scotland's Self-Caterers to discuss short-term let licensing. We remain committed to engaging with stakeholders about implementation of the scheme and continue to be responsive in our approach."