Question reference: S6W-01900
- Asked by: Rachael Hamilton, MSP for Ettrick, Roxburgh and Berwickshire, Scottish Conservative and Unionist Party
- Date lodged: 28 July 2021
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Current status: Answered by Shona Robison on 20 August 2021
Question
To ask the Scottish Government, further to the meeting of the Short-Term Lets Working Group on 18 February 2021, what its response is to the Society of Local Authority Lawyers and Administrators (SOLAR) estimate that the costs of short-term let licensing could be higher than those set out in the Scottish Government’s business and regulatory impact assessment (BRIA) and could be similar to HMO costs of up to £2,000 for a three-year licence.
Answer
Short-term lets can offer people a flexible and cheaper travel option, and have contributed positively to Scotland’s tourism industry and local economies across the country. However, we know that in certain areas, particularly tourist hot spots, high numbers of lets can cause problems for neighbours and make it harder for people to find homes to live in. The Scottish Government considers regulation of short term lets to be vital in balancing the needs and concerns of residents and communities, alongside wider economic and tourism interests.
The draft Business and Regulatory Impact Assessment published for consultation on 25 June 2021 estimates average, indicative fees in the range £223 and £377 for a three year licence. These estimates are based on full cost recovery.
The actual levels of fee are up to local authorities and are likely to include higher and lower tiers. The total revenue from fees must not exceed the costs of the scheme in each local authority.