Edinburgh council forced to backtrack on holiday let crackdown
Hundreds of holiday-let owners in Edinburgh have had suspensions lifted after the city council was threatened with legal action.
More than 450 landlords were thought to have been banned from operating in the Scottish capital after applying for letting licences without first receiving planning permission.
But council leaders have now withdrawn the three-month suspensions amid claims they were unlawful.
A legal challenge submitted by campaigners argued there is “no rational basis” to ban holiday-let owners from having their licence applications considered. It said the council’s “blanket and arbitrary approach” did not take into account individual circumstances.
The about-turn is another victory for the campaigners, who have forced three policy changes from the Labour-led authority in just two years.
The Scottish B&B Association said it is “deeply shocking” that the council was operating an allegedly “illegal policy”.
Fiona Campbell, of the Association of Scotland’s Self Caterers, said Edinburgh’s regulations were an example of how the country’s holiday-let policy has turned into “an international laughing stock”.
She said: “While we are obviously delighted that Edinburgh council has been pushed to reverse its position on three-month suspensions, we also must look again at why we are here.
“Despite countless engagements with Scottish government ministers and officials spanning years, the legislation which has been forced on the short-term let sector in Scotland is, once again, shown to be not fit for purpose.”
A “control area” was set up in Edinburgh in 2022, forcing second-home owners letting out their property to gain a licence and planning permission.
The rules were introduced in an effort to curb tourists’ reliance on sites such as Airbnb and Booking.com, which the Scottish government argued has pushed up rents and house prices.
City of Edinburgh council issued three-month suspensions to those who applied for a licence without first securing planning permission – but it has now backed down over the policy.
It means short-term let operators are now able to apply for a licence before planning applications are determined.
Councillor Neil Ross said: “We issued suspension notices to allow landlords to make relevant planning applications before their licences were determined. However, following the threat of legal challenge, we have decided to withdraw these.
“This does not change the need for short-term let premises to have planning permissions in place as appropriate in order to operate lawfully.
“All short-term let properties within Edinburgh remain subject to the statutory licensing regime and where licences are not in place, or conditions are breached, we’ll take appropriate enforcement action.”
A consultation by the council into how the licensing scheme is working in the city closes on October 14.
The scheme has been blamed for causing Edinburgh’s accommodation black market to grow “exponentially”. Comedian Jason Mamford said room prices during the city’s Fringe festival were an “absolute joke”.
Last year, the Court of Session ruled that parts of Edinburgh’s policy relating to tenement flats were “unlawful”.
Scotland is not the only country punishing holiday-let owners. In Wales, the Labour Government announced new rules last year which require holiday lets to be occupied for at least 182 days of the year. Previously holiday homes had to be occupied for at least 70 days.
If short-term let owners cannot meet that target, they face council tax premiums of up to 300pc of standard rates.
Dozens of owners have listed their second homes for sale with no intention of selling as they are rewarded with a 12-month council tax exemption.