Rural businesses in Scotland are 'set to suffer' following the Scottish parliament’s passing of a short-term lets licensing order, business leaders have warned.
All short-term let properties will require a licence to ensure they are safe and the people providing them are suitable, under legislation approved by the Scottish parliament.
Local authorities will be required to establish a short-term lets licensing scheme by 1 October 2022, and existing hosts and operators will have until April 2023 to apply for a licence.
The legislation was developed in response to concerns raised by residents and communities about the impact of short-term let properties on their local communities, including noise, antisocial behaviour and the impact on the supply of housing in some areas.
But the Scottish Land & Estates (SLE) group warned the move was 'hugely disproportionate'. It had raised concerns that the draft licensing order had been shaped with mainly urban businesses in mind.
It said the order failed to take into account the role short-term lets play across rural areas, by providing housing for communities and workers as well as bringing in tourism.
Following thousands of consultation responses expressing concern at the proposed plans, the Scottish government revised its draft order last autumn to make a number of changes including removing overprovision powers and reducing public liability insurance requirements.
However, SLE has highlighted that while such amendments were welcome, they 'fell far short' of meeting the needs of rural businesses.
SLE argues that there are a number of issues that the licensing order does not address, including "a one size fits all approach that fails to reflect the diversity of rural businesses".
A 'flawed' Business & Regulatory Impact Assessment (BRIA) also excludes previous Scottish government work on the value of short-term lets in rural communities.
Further issues include no differentiation between well-managed and reputable businesses who already comply with existing health and safety legislation.
SLE's policy adviser, Simon Ovenden said: “We’re extremely disappointed that these proposals have been passed by the Scottish parliament.
“While we understand the need for action in some localised situations, we have constantly warned of the dangers of a one size fits all approach.
"This urban-focused licensing order being imposed on rural Scotland, with evidence suggesting that the excessive bureaucracy and spiralling costs could now lead to many businesses closing with a knock-on impact to the local communities they serve.
“This is particularly disappointing given the significant difficulty rural businesses have faced during the last two years.”
