Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) (Amendment) Order 2024: business and regulatory impact assessment

5. Scottish Firms Impact Test

As was the position at the time of publication of the 2021 BRIA, firms affected by the 2024 Amendment Order are hosts and operators providing accommodation.

As the 2024 Amendment Order makes a small number of changes to an existing scheme, there is very little additional impact on Scottish Firms. Namely:

• Licence transfers – creates a new process to make it more straightforward to transfer a licence, and less administratively burdensome on businesses.
• Provisional licences for construction – creates a way to support new STL businesses.
• Exclusion for guest accommodation in sheltered accommodation – does not impact businesses, only sheltered accommodation.
• Definitions relating to temporary exemptions – we’ve clarified this can be maximum of three periods. We’ve therefore given more flexibility to hosts/operators, as our Policy Note for the 2022 Licensing Order stated intention was a single continuous period. We’ve also clarified the three periods apply to the calendar year rather than any 12 month period. This provides more certainty for hosts/operators.
• Requiring mandatory conditions on carbon monoxide and mobile gas heaters – this is the only provision in the Order that makes an additional requirement on businesses to provide additional documentation in the property.

Ministers and officials have met with Scottish Firms throughout the development of STL licensing, and several of the provisions in the 2024 Amendment emerged as a result of sector feedback to avoid unintended consequences of the scheme on businesses.

STL businesses and organisations have made representations to Ministers and officials that the 2024 Amendment Order should go further in scope. We propose to continue to gather feedback on the scheme’s operation and we will continue to update Parliament on future plans in relation to the scheme’s operation. However, we are mindful that any change to requirements for already licensed operators is likely to have an impact, and we may wish to consult more widely before making further changes.