Dramatic shortage of short-term lets and B&B accommodation in Scotland

[SimOv]

Additionally, as I understand it, each local authority goes about it differently, making it very difficult to have a common, and therefore cheaper, approach.

Yes. Following the passage of the short term lets legislation through the Scottish Parliament, our Government issued two 'guidance' papers; one for hosts and operators, and the other for local authorities. As we have 32 local authorities it means there are 32 differing interpretations of that guidance. The variability across Scotland in terms of fees and the imposition of additional conditions is therefore massive.

Next on the horizon for visitors, courtesy of the Scottish Government is........... (drum roll please.....) a Visitor Levy, or tourism tax. Here again, each local authority will be presented with 'guidance' so there will be 32 different interpretations of the legislation. The upshot is that from 2026 almost everyone staying overnight in Scotland, regardless of the accommodation (even if you are in your own tent on a camp site), will have to pay a levy which can be set by...you've guessed it...the local authority. I won't go into further detail of this here, but it's coming our way.

 

[Posh Pete]

I have been working with the ASSC on this matter over the last 18 months, and the Scottish Tourism Alliance and more. Their comment is absolutely spot on.

Ah so you have an interest to declare?

As does the ASSC quoted by Gerry. A quick Google showed me that they have been responding to LA consultations as local authorities are charged with administrating the scheme. Good. Local councils are best placed to decide how the legislation is actually applied.

Given that, some of your colleagues making statements about a "pogrom" being launched on them is hardly proportionate imho. There may well be ways in which the administration of the scheme could be improved but that kind of statement and blind opposition is hardly helpful.

I daresay there are aspects of the legislation that are arduous for property owners. Getting my bike MoTd is a pain too but I see why it's needed Maybe you'd like to specify in some detail what you object to in the legislation?

Until I'm persuaded otherwise, I'll assume this is special pleading by people who've been used to cashing in on an unregulated market, rising property prices and low interest rates.

The change in market conditions is the real reason why so many are quitting.

There's lots of issues the SG can be attacked for but this is not one of them.

 

[SimOv]

Ah so you have an interest to declare?

I don't have an interest to declare. No idea where that came from. I'm surprised that you want me to justify that to you. I don't own or manage a STL or any other accommodation other than our home which is only occupied by my family.

I work for a membership organisation that, together with ASSC and other groups support diverse rural business and communities who are struggling to survive as we are still emerging from the legacy of COVID. Yes, in city locations there are some people who have seen STL as a business opportunity and Edinburgh Council are dealing with this by requiring additional retrospective planning permission through which they are refusing over 95% of applications, so that level of accommodation will be put out of business. No idea how the Festival and Fringe will go ahead with an estimated loss of an estimated 6,000 beds per night!

My frustrations and primary concerns for both hosts and visitors are in my blog. You appear to be clearly gratified however that so many long term reputable family accommodation businesses are being put out of businesses which, for some, will also mean the loss of their home at a time when Visit Scotland confirms the tourism market is continuing to expand and visitor numbers growing, particularly from abroad due to the weakness of GBP.

As for cost, well your MOT costs about £30. An earlier post from @DANE has confirmed his application (which has to be renewed every 1-3 years depending upon the local authority) is costing him £2,000 - £3,000. I have heard of figures close to £5,000 from some hosts.

My original post was to highlight what is actually happening on the ground and give advice to fellow Tossers. This is the reality, like it or not.

 

[DANE]

“Until I'm persuaded otherwise, I'll assume this is special pleading by people who've been used to cashing in on an unregulated market, rising property prices and low interest rates.”

If this was the case Pete we would be operating our cottage as a long term let - considerably less effort and less demanding customers.

“The change in market conditions is the real reason why so many are quitting”.

Pete, It’s not market conditions from where I’m standing - we are lucky my former work background included managing a lot of the Licence requirements. Those who don’t have my background will have to pay for the majority of the reports, certificates etc. and may not be able understand the difference between a report that identifies “you should do this” and “you must do this” and the associated cost, disruption etc.

A number of hosts (as we are called) I have spoken too are simply overwhelmed by the disproportionate requirements and cost for small scale accommodation and it’s simply not viable to continue.

 

[gerarddwatts]

You are wrong Pete, and I don't really understand why you should adopt this position. Whatever.

 

[Santa-2512]

Have to say, some of the B&B's didnt do themselves any favours, £150 a night for a B&B on the NC500.
I voted with my feet and wallet

 

[Posh Pete]

I don't have an interest to declare.

I meant simply that you have a position re this matter and you've made that clear in your post. I also have view and I agree that the legislation could probably have been better framed. I'm told that mountain bothies have been drawn into this for example. Likewise, the 32 local authories should agree a consistent position over problematic issues via COSLA but the whole point of local democracy is to respect local conditions. However, the idea that short term lets should not be regulated is untenable and some of the responses in the media from STL owners (such as the "pogrom" I quoted) , has been grossly exaggerated and appears aimed at stopping the legislation rather than amending it.

As for cost, well your MOT costs about £30. An earlier post from @DANE has confirmed his application (which has to be renewed every 1-3 years depending upon the local authority) is costing him £2,000 - £3,000. I have heard of figures close to £5,000 from some hosts.

The flaw in my analogy being that my bike will only ever cost me and when I sell it, I will never make a profit. Not so with housing!

STLs are profit making and part of the reason for their profitability has been market conditions, as I pointed out. Recent changes in interest rates must surely have been a factor in STL owners cashing in their property investments. Likewise, the £5000 you mention should be regarded as investment not pure cost. That investment will be recouped over time. Trouble is that housing has become regarded by many as a way of making a quick and very large buck.

Pete, It’s not market conditions from where I’m standing - we are lucky my former work background included managing a lot of the Licence requirements. Those who don’t have my background will have to pay for the majority of the reports, certificates etc. and may not be able understand the difference between a report that identifies “you should do this” and “you must do this” and the associated cost, disruption etc.

Sorry Dane but if they can't understand the difference between "Should" and "Must" ... come on! Surely the trade body quoted above should have been supporting them in providing guidance?

If this was the case Pete we would be operating our cottage as a long term let - considerably less effort and less demanding customers.

There's a bigger issue here Dane, as I've alluded to in my posts. I think you should watch the TV prog I posted about above earlier. I appreciate your circumstances are unique to you but the wider issue is the housing market. Successive governments have, by omission and commission, created a housing market which disproportionately favours people with capital over people without capital. Young people cannot afford to buy homes which people of my generation, at their age and income level, could easily afford. Housing has become, disproportionately, a source of significant income and profit rather than providing roofs over heads and serving the wider economy. The STL issue, especially in the cities, is part of that. A lack of regulation and low interest rates have helped to inflate house prices and remove houses from the market for permanent or long term homes. STL legislation and higher interest rates will go some way to re-balancing the housing market.

I appreciate that's no consolation to yourself when you've clearly invested time, money and emotion into your second home but it's whats needed (and more) if things are to get back to a better balance.

 

[Posh Pete]

You are wrong Pete, and I don't really understand why you should adopt this position. Whatever.

See above post #27 Gerry.

 

[parkys100]

The Scottish tourist industry is quite capable of crippling itself.
last year on tour in Scotland I was paying an average of £125 to £130 a night for B & B in hotels. Nothing fancy, just run of the mill ones.
this year I’ve just done about 6 weeks in Europe on 2 trips and on average paid £70 to £80 a night In hotels just as good.
As more people realise the way it’s going , more will choose abroad rather than Scotland. A shame really as all you’ll be left with is the rental motor home brigade leaving rubbish everywhere, and dumping waste tanks on the road.

Off to Europe for me ,cheaper and better weather

 

[stever1]

Knowing nothing about the legislation nor being from Scotland. If it is an attempt to wrap some hands around the proliferation of Air BnB I'm all for it.
These companies exist only to encourage purchasing of housing stock of all types to push them into short term rental sole purpose is personal profit generation. It isn't meant to make it easy for picking up accommodation for holidays It's wall street taking homes from individuals. Your own kids driven out of the future market.
Additionally the notion this is urban centric flies against the acquisition off all forms of housing in small tourist locations in many countries. Gobbling up the market from locals and driving them out of owning homes.

AirBnB is a race to the bottom. We should be looking for well regulated managed and customer focused tourist accommodation. It should not be at the cost of normal people in any location being capable of buying their own home in their local areas where wages are usually low anyway. i.e northern Scotland.

I'd also be extremely cynical of folks who are completely against some form of structure and rules around short term letting. No doubt they probably have one or more of them.

Globally, populations are sleep walking into an era were their 30 year old kids can't leave home because its unaffordable. Everything is being built for rent and anything else picked up by amateur landlords and throwing it up on AirBnb sans any rules and sod the laws or local council taxes.

I suppose people have to wake up and choose whats important.

Think your a bit mixed up old chap

I meant simply that you have a position re this matter and you've made that clear in your post. I also have view and I agree that the legislation could probably have been better framed. I'm told that mountain bothies have been drawn into this for example. Likewise, the 32 local authories should agree a consistent position over problematic issues via COSLA but the whole point of local democracy is to respect local conditions. However, the idea that short term lets should not be regulated is untenable and some of the responses in the media from STL owners (such as the "pogrom" I quoted) , has been grossly exaggerated and appears aimed at stopping the legislation rather than amending it.

The flaw in my analogy being that my bike will only ever cost me and when I sell it, I will never make a profit. Not so with housing!

STLs are profit making and part of the reason for their profitability has been market conditions, as I pointed out. Recent changes in interest rates must surely have been a factor in STL owners cashing in their property investments. Likewise, the £5000 you mention should be regarded as investment not pure cost. That investment will be recouped over time. Trouble is that housing has become regarded by many as a way of making a quick and very large buck.


Sorry Dane but if they can't understand the difference between "Should" and "Must" ... come on! Surely the trade body quoted above should have been supporting them in providing guidance?

There's a bigger issue here Dane, as I've alluded to in my posts. I think you should watch the TV prog I posted about above earlier. I appreciate your circumstances are unique to you but the wider issue is the housing market. Successive governments have, by omission and commission, created a housing market which disproportionately favours people with capital over people without capital. Young people cannot afford to buy homes which people of my generation, at their age and income level, could easily afford. Housing has become, disproportionately, a source of significant income and profit rather than providing roofs over heads and serving the wider economy. The STL issue, especially in the cities, is part of that. A lack of regulation and low interest rates have helped to inflate house prices and remove houses from the market for permanent or long term homes. STL legislation and higher interest rates will go some way to re-balancing the housing market.

I appreciate that's no consolation to yourself when you've clearly invested time, money and emotion into your second home but it's whats needed (and more) if things are to get back to a better balance.

youre wrong on an important point pete.
the reason many young folk can’t afford a house is that they are to busy spending there money on the latest phone, a new car every 3 years on PCP , having big credit debts due to holidays, the latest fashion and such like.
folk have got used to cheep credit for to long. It’ll now come back and kick them in the arse.

 

[listermint]

2k to get a business compliant .... let's be honest about that, it's pretty low investment.

And I'd argue anyone thats remotely really interested in keeping their letting will pay it.

Personally I don't see this having a real serious impact on the sector. Additionally might I had charging more rent per week or night because you had to spend 2 grand to become compliant once off is bizarre. You probably make that in 2 weeks today.

This isn't a consumer focused hoorah, it's businesses who've made hay in an unregulated area.

If anything it may free up housing stock for real homes for real families.

 

[listermint]

Think your a bit mixed up old chap

youre wrong on an important point pete.
the reason many young folk can’t afford a house is that they are to busy spending there money on the latest phone, a new car every 3 years on PCP , having big credit debts due to holidays, the latest fashion and such like.
folk have got used to cheep credit for to long. It’ll now come back and kick them in the arse.

Ha ha utter nonsense.

People living at home in their parents house are there because they bought a new phone. That telegraph guff frankly. And it has zero and I mean zero basis in facts.

Il go out on a limb and say you've bought your home in the 70s and have no context on the cost of a home versus the take home wage of someone your age when you bought yours today.

I await the... 'I worked my arse off to get on the ladder'... 'kids never had it so good'..


The market is broken, with incentives for small investors. Homes under the Hammer has alot to answer for

 

[stever1]

Ha ha utter nonsense.

People living at home in their parents house are there because they bought a new phone. That telegraph guff frankly. And it has zero and I mean zero basis in facts.

Il go out on a limb and say you've bought your home in the 70s and have no context on the cost of a home versus the take home wage of someone your age when you bought yours today.

I await the... 'I worked my arse off to get on the ladder'... 'kids never had it so good'..


The market is broken, with incentives for small investors. Homes under the Hammer has alot to answer for

Well I know of at least 3 young men who fit my description. One of them runs his own company but still can’t afford a home. He can afford a new GS EVERY 3 years on PCP.
He also puts everything on credit cards, but still lives with parents.

 

[Posh Pete]

the reason many young folk can’t afford a house is that they are to busy spending there money on the latest phone, a new car every 3 years on PCP , having big credit debts due to holidays, the latest fashion and such like.

You're being silly now. If that's the kind of argument your trade body advanced, no wonder they didn't get very far in influencing the legislation. Watch the TV prog, it's very good indeed. www.bbc.co.uk/iplayer/episode/m001rkmp There's a second episode too.

 

[stever1]

You're being silly now. If that's the kind of argument your trade body advanced, no wonder they didn't get very far in influencing the legislation. Watch the TV prog, it's very good indeed. www.bbc.co.uk/iplayer/episode/m001rkmp There's a second episode too.

Trade body,…. What are you on about . I never mentioned any trade body

 

[Posh Pete]

I have been working with the ASSC on this matter over the last 18 months, and the Scottish Tourism Alliance and more. Their comment is absolutely spot on.

Trade body,…. What are you on about . I never mentioned any trade body

Apologies. That was the OP, not you. See above. It was nevetheless a silly argument!

 

[AndyB_11]

I realised quite a while ago that if I want to visit Scotland (or a lot of other tourist areas) it’s better for me to stop in the likes of a Holiday Inn or Hilton and avoid eating and drinking there than it is to find the type of pub with rooms that serves nice home made food and includes a breakfast in the headline price.

The last time I stopped there for a single night I was in a Holiday Inn just outside Aberdeen where the room cost me £70 for the night but an evening meal, 2 pints and a breakfast the next day would cost me £64. I could have gone to a smaller hotel where breakfast was included and stopped there, had a similar evening meal and a couple of pints for £140. The big difference was that the rack rate for the room was £105 for a smaller room, no air conditioning (this was early August) and no reduction if I was going early so didn’t want a breakfast.

These places often have photos of heavily piled up plates of breakfast but they know less than 50% of guests will have everything and they also want to keep the prices of evening meals lower to attract passing trade while a Hilton hits you with a £20 charge for breakfast no matter if it’s a coffee and croissant or a big hit on the buffet, then want £7 or more for a pint, £10 for a starter, £20 for a burger.

It just depends on what you want because they want your money no matter where you stay or how they extract it from you.

As has already been said, it’s cheaper to fly to Spain for a fortnight than do a road trip in the UK for a week.

 

[stever1]

I realised quite a while ago that if I want to visit Scotland (or a lot of other tourist areas) it’s better for me to stop in the likes of a Holiday Inn or Hilton and avoid eating and drinking there than it is to find the type of pub with rooms that serves nice home made food and includes a breakfast in the headline price.

The last time I stopped there for a single night I was in a Holiday Inn just outside Aberdeen where the room cost me £70 for the night but an evening meal, 2 pints and a breakfast the next day would cost me £64. I could have gone to a smaller hotel where breakfast was included and stopped there, had a similar evening meal and a couple of pints for £140. The big difference was that the rack rate for the room was £105 for a smaller room, no air conditioning (this was early August) and no reduction if I was going early so didn’t want a breakfast.

These places often have photos of heavily piled up plates of breakfast but they know less than 50% of guests will have everything and they also want to keep the prices of evening meals lower to attract passing trade while a Hilton hits you with a £20 charge for breakfast no matter if it’s a coffee and croissant or a big hit on the buffet, then want £7 or more for a pint, £10 for a starter, £20 for a burger.

It just depends on what you want because they want your money no matter where you stay or how they extract it from you.

As has already been said, it’s cheaper to fly to Spain for a fortnight than do a road trip in the UK for a week.

Agree with all of that. The sad thing is, I always used to try and find the small family run hotels, or pubs to stay in. nowadays, I couldn’t afford to do that.

 

[AndyB_11]

Agree with all of that. The sad thing is, I always used to try and find the small family run hotels, or pubs to stay in. nowadays, I couldn’t afford to do that.

It’s just the way things seem to have swung over the last 2-3 years. I always stopped in a pub, ate and drank there and was more than happy. Now the cheapest way to do it is to book a Holiday Inn or similar, take a coolbox for your beer and sandwich makings then order food through a delivery app.

 

[Flintlock]

Did a road trip in Scotland in September (car) and have to give this place a mention

The Townhouse Aberfeldy, Bed and Breakfast accommodation.

Newly renovated Bed and Breakfast accommodation in Aberfeldy Perthshire.

www.townhouseaberfeldy.co.uk

Could not fault it in any way