MSPs call on FM to pause short-term let licence plans

MSPs from across the political parties have called on the first minister to pause the start of licensing Scotland's short-term letting sector.

Former SNP cabinet secretary Fergus Ewing is one of 37 MSPs who have written to Humza Yousaf demanding action.

A new law requires short-let operators to apply for a licence by 1 October.

Mr Yousaf refused to back down over the scheme on Monday, saying it was the "right thing to do".

Housing Minister Paul McLennan has said extending the deadline "would do a disservice to the thousands of operators who have already applied".

The letter has also been signed by 31 Conservative MSPs including their leader Douglas Ross, three Labour members including their deputy leader Jackie Baillie, and Liberal Democrats Willie Rennie and Liam McArthur.

It describes the legislation as "flawed" and a threat to Scotland's tourism sector and wider economy.

The letter says: "As you will be aware, as of 7 August 2023, local authority licensing registers indicates that 84% of all types of short term lets have not yet applied. In Edinburgh, this figure is 97%. This is not a sustainable position, and it will put small businesses, individuals, and councils across Scotland in invidious positions if allowed to continue."

The licensing scheme was designed to tackle problems with housing demand and anti-social behaviour which many claim have been exacerbated by the growth of the short-term let (STL) sector through online platforms such as Airbnb.

Edinburgh has already become a "control zone" with strict new planning and licensing rules for STLs.

But critics of the national legislation say it penalises small business owners and people in private homes who rent out rooms, while leaving multi-national companies exempt.

There is also concern that the rules and fees for licensing STLs will vary across Scotland's 32 councils and that operators could face thousands of pounds in charges.

Last week, the Scottish Bed and Breakfast Association (SBBA) said two-thirds of Scottish B&B owners were considering shutting their doors over restrictions on short-term lets.

SNP MP Fergus Ewing said the new scheme was not needed to tackle anti-social behaviour, as laws already exist which do this. He also said it would do nothing to solve the problem of a lack of affordable housing.

"There has never been any proper attempt by the Scottish government to even try to measure the damage these regulations will have on small business and the wider tourism economy," he said.

"If they don't suspend the regulations now, they will find out the hard way just what a huge blunder these regulations are and forfeit the trust and confidence of many former supporters.".

Scottish Tory leader Douglas Ross said: "The SNP need to stop acting like they know best and urgently pause their completely unworkable licencing scheme.

"The industry has repeatedly warned about the devastating effects it will have for many small business owners, but SNP-Green ministers have shamefully refused to address their concerns.

"This refusal to listen makes a mockery of Humza Yousaf's promise to reset his relationship with Scotland's businesses."

Housing Minister Paul McLennan acknowledged the importance of holiday lets to Scotland's tourism industry, and said the licencing scheme would "give assurance to guests over the safety and consistent quality of lets".

He added: "We will continue to engage with stakeholders and listen carefully to feedback, but extending the deadline once more will do a disservice to the thousands of operators who have already applied and many others who have prepared their property in order to receive one.

"So the responsible and balanced course of action is for everyone to get behind the task of encouraging and supporting short term let operators to apply for a licence in good time and before the 1 October deadline."