EDINBURGH is at the forefront of a crackdown on short-term rentals such as Airbnb after the whole city was officially designated as a control zone.
The Scottish Government today said it had approved plans proposed by Edinburgh City Council for the authority to become Scotland’s first short-term rental control area.
This means that all new short-term rental conversions must first obtain planning permission, allowing the council to limit the number of approvals.
The owners warned the change was ‘totally disproportionate’ and would harm the tourism industry.
The capital is home to around a third of all short-term rentals Scotlandand residents have long complained about anti-social behavior and the resulting erosion of communities.
SNP housing secretary Shona Robison said: ‘Edinburgh was the first local authority in Scotland to propose a short-term rental control area and the Scottish Government’s approval represents a major step forward.
“We are committed to empowering local authorities to address concerns about the impact of short-term commercial letting in their communities, if they wish.
“This is an example of this local choice in action – supported by the majority of respondents to council’s consultation on the proposed designation.
“I recognize the important role that short-term rentals play as a flexible and responsive source of accommodation for tourists and workers, which brings many benefits to hosts, visitors and our economy.
“However, we know that in some areas, especially tourist hotspots, high rental numbers can cause problems for neighbors and make it harder for people to find homes to live in.
“The Scottish Government considers that the council has duly considered and responded to the concerns raised before seeking approval for the designation of the Control Area.”
The changes were passed unanimously by the council’s planning committee earlier this year, while 85% of respondents to a consultation backed the move.
Airbnb, one of the world’s leading short-term rental platforms, said tighter regulations could hit the economy hard.
Research from the firm, which would likely be among the hardest hit by tougher rules, suggested it could cost the economy up to £133m and 7,000 jobs.
However, Labor Council leader Cammy Day said: ‘This is the news we have been waiting for after leading the way in the campaign for change.
“I am delighted that ministers have responded to our appeals and we look forward to reviewing all the details included in the decision published today.
“It paves the way for Edinburgh to become the first short-term control area in Scotland.
“For too long, too many homes have been lost in our city to the vacation market.
“In fact, around a third of all short-term rentals in Scotland are here in the capital, so the associated issues of security, anti-social behavior and noise have a detrimental effect on many of our residents.
“We will now make progress in implementing the changes and the next step should be to determine if we can also cap the numbers.”
The control area is separate from a new nationwide licensing system that will begin shortly.
From October, new owners of short-term rentals across Scotland will have to apply to the local council for a license to operate, while existing owners will have until April 2023.
Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, said: “The ASSC is extremely disappointed that the Scottish Government has chosen to approve the short-term rental control area proposed by the City Council of the city of Edinburgh.
“Our members in the capital, who help generate over £70m every year, will be rightly concerned about what this means for their livelihoods in what is already a difficult regulatory and economic situation. environment.
“Independent properties have been present in Edinburgh for decades, providing a vital source of alternative accommodation at major events.
“It is therefore somewhat ironic that this news comes in the same week that many artists and Festival visitors will arrive in the city.”
“We think a city-wide control zone is totally disproportionate.
“As we have warned, the Council’s unproven plans are seriously flawed and will simply lead to many small businesses closing without achieving their policy objective, while harming Edinburgh’s position as a world first festival city.
“It is with deep regret that a key part of Scotland’s tourism industry has once again been completely ignored by policy makers.
“This decision, coupled with the government’s onerous licensing system, has the potential to be absolutely devastating to our industry in Edinburgh.”
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