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31/08/2025

Update on JR3: Scottish Ministers Concede Appeal

We are pleased to share a significant development in the Appelant v Scottish Ministers case.

The Scottish Government has now conceded the Court of Session appeal, acknowledging that the Reporter’s decision contained legal deficiencies by failing to provide sufficient reasoning regarding the Class 9 classification issue.

As a result, the DPEA must now reconsider the case, with specific attention given to properly addressing the Class 9 classification question.

This outcome was achieved without proceeding to a full hearing, minimising legal expenses while ensuring that the fundamental legal question receives the attention it deserves.

Key Implications

Appeal Grounds Validated – The Reporter’s failure to address the Class 9 classification issue led directly to this concession.

Judicial Recognition – Ministers have accepted that the decision was legally untenable.

Procedural Reset – The DPEA must now redetermine the case, fully explaining its reasoning.

Strategic Efficiency – The appeal succeeded at this stage without incurring full hearing costs.

Systemic Weaknesses Identified – This case highlights significant flaws in the current decision-making framework.

Policy Reform Considerations – The case strengthens calls for a dedicated use class order to provide clarity and consistency.

Strategic Significance

This is an optimal outcome both legally and financially: we have contained costs while ensuring that the fundamental question of whether short-term lets fall within Class 9 (dwellinghouses) will now be directly addressed.

The case highlights the pressing need for wider regulatory reform. In the absence of a dedicated use class, operators face inconsistent interpretations and potentially costly planning disputes.

The ASSC continues to maintain that short-term lets should be recognised under Class 9 for reasons including:

– Their functional equivalence to residential properties.

– The principle that planning control regulates land use, not tenancy length.

– Inconsistencies in current interpretations between otherwise identical properties.

– Existing precedent in other appeals and local authorities.

– The absence of any explicit exclusion of STLs within the Class 9 definition.

We will continue to monitor developments closely, using the Advocacy Fund where necessary to protect the rights of Scotland’s self-catering operators.

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