The Scottish Greens have tabled a series of amendments to the Housing (Scotland) Bill that would significantly alter how short-term let (STL) businesses are treated under Scotland’s non-domestic rates (NDR) system.
Green MSP Ross Greer has lodged three amendments – SP689, SP718, and SP719 – that seek to both remove existing NDR relief from STL properties and impose an additional surcharge on their rates. If adopted, these changes would prevent STL operators from accessing schemes such as the Small Business Bonus Scheme and would mandate higher rates specifically for self-catering and short-term let properties.
The proposals define eligible properties as those “let as self-catering holiday accommodation” or “otherwise let on a short-term basis” that are “suitable for providing housing to a person on a temporary or permanent basis.” Mr Greer claims these measures will help alleviate Scotland’s housing crisis by discouraging property acquisition for holiday lets and increasing housing availability.
In response, Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers (ASSC), issued the following statement:
“Raising false hopes about tackling homelessness by hitting Scotland’s tourism sector is a cynical ploy which ignores the reality of Scotland’s housing crisis. Effective housing policy should be data-led, not driven by ideological soundbites and a tedious anti-business agenda.
Mr Greer conflates fundamentally distinct categories of property use, namely second homes and professionally operated self-catering units (SCUs). This repeated mischaracterisation flies in the face of all of the evidence and undermines a vital part of Scotland’s visitor economy.
BiGGAR Economics demonstrated that self-catering properties account for just 0.8% of Scotland’s housing stock, compared to 3.4% for empty homes and 0.9% for second homes. These are not wealthy individuals ‘hoarding homes’, but regulated businesses that underpin local economies and Scotland’s tourism infrastructure, especially in our rural and island communities.
It’s also important to understand the economic contribution at stake. Each SCU supports over £50,000 in GVA annually, far exceeding the economic impact of the same property in residential use. Moreover, guests in short-term lets spend more than average visitors, injecting essential income into local shops, restaurants, and cultural venues.
Rather than scapegoating Scotland’s £1bn self-catering industry – who already pay licensing fees and non-domestic rates – policy should instead focus on real solutions: repurposing the 92,000+ long-term empty homes across Scotland and accelerating the construction of genuinely affordable housing. We’ve got to build our way out of this crisis, not destroy small business.”
The ASSC will continue to engage constructively with Parliament and stakeholders to advocate for evidence-based, fair, and proportionate regulation that supports both Scotland’s housing ambitions and the vital economic role of tourism.