Being involved within the property sector, I’ve kept a close eye on new legislation due to come into force shortly regarding short-term lets.
As a quick reminder, the Scottish Government are hell bent in forcing all short-term lets, including B&Bs, self-catering units and Airbnb hosts, into obtaining a license if they are to continue to operate.
With its 1st October deadline nearly upon us, landlords have only the remainder of this month to apply for the license, and if they fail to meet this requirement, their business will have to cease.
With only a few weeks left to go, it was concerning that recent Scottish Government stats show fewer than one-tenth of the businesses expected to sign up have done so.
Published at the beginning of September, only 2,587 applications have been received by local authorities. This is against an estimated 32,000 lets across the country. In fact, in Glasgow, there were just 78 valid applications, and only 90 in Edinburgh.
These lowly figures seem hard to believe, especially since the Edinburgh Fringe welcomes approximately three million visitors to the capital each year.
With performers and tourists descending upon the city and filling up accommodation there is no way that alongside the hotels, only 90 lets were available. Instead, estimates place the number of short-term lets within Edinburgh at around 12,000. So where are the sign ups?
Unfortunately, there’s not a one-size-fits-all proposal that will work for these different types of businesses, and I’m sure many are wondering whether it is worth it. If this legislation does come into force, there is no doubt in my mind that we will lose the vast majority of our much-needed short-term lets. Shockingly, in Edinburgh alone, it’s predicted that 80 per cent of short-term let properties could disappear.
I believe the legislation will truly have a negative impact not only within the short-term let sector, but also on small companies who work within the supply chain, such as cleaners and maintenance people, as well as the local economy overall. And then there’s the knock-on effect for the hospitality sector…
I’ve pondered on what the government can do with this ill-thought-out legislation to make it a success, but there are just too many problems and possible complications for business owners for it to ever work as intended. Like much of what emanates from Holyrood these days, good intentions don’t always translate to well thought out and practical legislation.
For example, those applying for a license must also have planning permission in place, and if not, it must be approved before the deadline. Without this planning permission, they simply cannot get a license. I don’t need to tell you how long that process can take, so hosts are already at a disadvantage.
Then you must consider the costs associated with the new regulations as, apparently, they could range from £86 up to £24,000. Certainly not small change for the vast majority of those involved within the sector.
If these businesses do shut down in Edinburgh, it will just create a further shortage of holiday accommodation. How then do we cater for tourists during busy summer months like August for the Edinburgh Fringe Festival?
The impact this would have on our tourism and hospitality sector, which has already suffered these past few years, is unthinkable.
I thought only the SNP, in partnership with the Greens, could shoot themselves in the foot when it comes to this type of legislation, however in New York, it was also D-Day this month for unlicensed accommodation, with landlords having to register.
The city had said that global platforms like Airbnb or Booking.com will break the law if they process any payments from unregistered hosts, but with similarities to Scotland, NYC has seen a backlog in paperwork and the majority of landlords are not registered ahead of the deadline.
I understand some of the rationale around the legislation, with the Scottish Government only trying to address the impact of unregulated Airbnb-style short-term letting accommodation.
However, in my mind, this type of licensing is not the way to do it. After the disastrous Deposit Return Scheme, it would be sensible to can this bill too.
Tunnel Vision in Shetland
I’ve recently discussed the importance of ensuring our islands are well connected, including a new innovative approach by the Royal Mail to help deliver post on Orkney via drones.
Unfortunately, drones can only carry so much, so it was interesting to see last week that Shetland is in advanced talks to potentially create a network of tunnels to ensure the connectivity of the Islands.
The Shetland Short Crossings Project – a significant initiative if it comes to pass – envisions four tunnels connecting various islands to the mainland.
Already moving at speed, the Shetland Islands Council has secured a meeting with Scottish Secretary Alister Jack and is in talks with the Scottish government regarding inter-island connectivity, whilst talks are also ongoing with the UK government for assistance in constructing tunnels to the north isles, including linking the mainland with the SaxaVord Spaceport on Unst.
Although the islands are already connected by a ferry service, which plays a vital role in the region’s social and economic life, concerns have been raised about the aging fleet – with the council emphasizing the urgent need to replace the vessels with either tunnels or new ferries to ensure the continued provision of lifeline services to Shetland’s islands.
With Shetland playing a significant role in the UK’s energy sector, alongside the new Spaceport looking to take off, it will be interesting to see just how much the Scottish and UK governments provide in funding for this proposed project.
It Made Me Laugh
A Swing and a Prescription
I was blissfully unaware that swinging was great for your health, but a group of pensioners in Fife are proving that’s the case through being ‘prescribed’ golf as a treatment for health conditions.
The pilot scheme, run in conjunction between PGA professionals, GPs and academics at the University of St Andrews has been hailed a success in helping encourage a more active and social lifestyle.
Four local golf clubs took part, offering a six-to-eight-week free programme and the organisers seem to have hit a hole-in-one, with the 60 participants feeling the positive benefits from the game.
So much so, there will now be an assessment to see if it can be rolled out further afield. I look forward to hearing about the project teeing off across Scotland.
It Made Me Weep
Cream o’ Galloway Calls Time
I was sad to see that after nearly 30 years, a beloved tourist attraction, Cream o’ Galloway, in southern Scotland is closing this month, resulting in five redundancies.
With the site having been a hub for various events and activities through the years, its loss will be felt within the local community.
I’m a big advocate for businesses diversifying their products and services to provide an extra income stream and ensure longevity, so although the time has come to close the doors, I applaud the work that went in to make it a success for so long.
Though the visitor centre is closing, the production of Cream o’ Galloway ice cream will carry on under new ownership at the farm.
