The Scottish Bed & Breakfast Association (SBBA) has submitted evidence to the Local Government Housing & Planning Committee.
“In our 18 years’ experience of dealing with tourism policy development and implementation with Governments in Westminster, Brussels and Edinburgh, the implementation of STL Licensing in Scotland has been (as we told the Minister for Housing, Paul McLennan, in April) by far the worst example of policy implementation we have ever encountered.”
The document titled “SBBA Evidence to LGHPC on STL Licensing – 1 October 2024” provides a detailed critique of Scotland’s Short-Term Let (STL) Licensing policy. It was submitted by the Scottish Bed & Breakfast Association (SBBA) to the Housing & Local Government Committee of the Scottish Parliament. Here’s a summary of the key points:
- Background:
The SBBA has advocated for regulatory fairness between traditional bed and breakfast (B&B) businesses and online rental platforms (e.g., Airbnb). They have called for a light-touch, low-cost national registration system for tourism accommodation, similar to models in other countries. However, the Scottish Government implemented a fragmented STL Licensing policy across 32 local councils, which the SBBA deems ineffective and overly burdensome.
- Implementation Issues:
- The STL Licensing policy, implemented in October 2023, is described as fragmented, inconsistent, and poorly designed.
- Traditional B&Bs and guesthouses, already compliant with health and safety regulations, have been unfairly burdened.
- Licensing fees and requirements have far exceeded what the government originally projected. The average cost per B&B for STL Licensing is around £2,147, disproportionately impacting small businesses.
- The licensing process has been slow, with many operators waiting months for approval. Some businesses have closed due to these administrative burdens.
- Economic and Social Impact:
- The policy has led to a significant reduction in the number of B&Bs and guesthouses, especially in rural and island communities.
- This contraction in tourism accommodation has driven up prices, harming Scotland’s competitiveness as a tourist destination.
- The policy has not addressed affordable housing supply and has instead resulted in the sale of ex-B&B properties as second homes, further reducing community economic benefits.
- Recommendations:
The SBBA suggests:
- Replacing the current STL Licensing scheme with a simpler, national digital registration system.
- Reducing licensing fees and streamlining application processes.
- Exempting Class 7 premises (B&Bs, guesthouses) from licensing.
- Improving the guidance to local councils to reduce arbitrary enforcement and costs.
- Overall Conclusion:
The STL Licensing scheme has failed to achieve its intended objectives, such as improving health and safety or addressing housing shortages. Instead, it has caused significant harm to Scotland’s tourism industry, particularly in rural areas, and reduced the livelihoods of small accommodation providers.
Read submissions from the ASSC and STA here.