Short-term lets: business and regulatory impact assessment

C: Consultation

C1. Within Government

60. The Short-Term Lets Delivery Group was established in 2018 to assess the evidence base and the positive and negative impact of short-term lets, identify the councils' existing powers and explore whether further measures were required. The Group comprised officials from across relevant areas of the Scottish Government including: better regulation, community empowerment, economy, housing, licensing, planning, tax and tourism.

61. In terms of engagement across the wider public sector, we have engaged with local government through local authority heads of planning, environmental health, licensing and housing officers and COSLA.

62. We have also engaged with Police Scotland and the Scottish Fire and Rescue Service, both of whom have an important role to play in the licensing scheme. VisitScotland also provided input through the virtual workshops held as part of the 2020 consultation.

63. All these organisations are represented on our stakeholder working group.

C2. Public Consultation

64. In April 2019, the Scottish Government launched a public consultation and commissioned independent research into the impact of short-term lets on people and communities. The 2019 consultation paper outlined possibilities for a regulatory approach, which included the licensing of short-term lets. The paper noted the range of approaches adopted in cities and countries around the world and asked for opinions on the types of short-term lets which should be regulated and the controls which should be applied. In parallel with the 2019 consultation, what is now the Planning (Scotland) Act 2019 completed its passage through the Scottish Parliament and made provision for the establishment of short-term let control areas.

65. In May 2019, the Scottish Government commissioned Indigo House, in collaboration with IBP Strategy and Research and Professor Rae from the University of Sheffield, to address gaps in the available evidence on the impact of short-term lets on housing and communities. The results of this research are reported above in section B3.

66. Broadly speaking, the same themes, benefits and concerns were highlighted by people at 2019 consultation events, those responding to the 2019 consultation and the independent research. The reports on the 2019 consultation and research were published on 28 October 2019.

67. A second (2020) consultation was carried out from 14 September to 16 October 2020 covering: the definition of short-term lets; the establishment of control areas under the powers created by the Planning (Scotland) Act 2019; and the establishment of a licensing scheme under the Civic Government (Scotland) Act 1982. The purpose of the 2020 consultation was to help the Scottish Government ensure that the legislation laid at the Scottish Parliament in December 2020 was as efficient and effective as possible. The report on this consultation was published in December 2020.

68. A third, and final, (2021) consultation was carried out from 25 June to 13 August 2021 seeking specific views on the draft Licensing Order and draft 2021 BRIA. The purpose of the 2021 consultation was to give stakeholders the opportunity to review the draft Licensing Order, which had been amended following discussions with, and feedback from, the stakeholder working group, to help the Scottish Government get this important legislation absolutely right.

C3. Business

69. The Scottish Government has had constructive engagement with Airbnb, the Association of Scottish Self Caterers (ASSC), the Scottish Bed and Breakfast Association (SBBA) and the UK Short Term Accommodation Association (STAA), bodies with a strong interest in short-term lets in Scotland; all of whom are keen to promote best practice and high quality and standards. They have engaged with Scottish Government through public consultation and other meetings and as members of the stakeholder working group^[22].

70. The 2020 consultation report (at Annex B of that report) details the virtual workshops held over the 2020 consultation period and business was well-represented at these events. We heard from:

• Accommodation providers – ranging from Airbnb hosts, to self-catering businesses, serviced apartments and aparthotels;
• Accrediting organisations – Electrical Safety First, Firescape, Quality in Tourism and Superhog (Guardhog) Technologies;
• Channel managers and hosting intermediaries – Altido, Passthekeys, SpotHost, Houst, Booksterhq, GuestReady;
• Letting agents, platforms and aparthotels – EdLets, Airbnb, booking.com, HomeAway (Expedia), Sykes Cottages, Sonder, Palm Holdings (Edinburgh) and StayCity;
• Tourism and business – ETAG, Scottish Tourism Alliance, Skye Connect, UK Hospitality, Visit Arran; and
• Trade associations – STAA and ASSC.

71. We also held a workshop with the Regulatory Review Group^[23].

C4. Stakeholder Working Group

72. In February 2021, the Scottish Government established a stakeholder working group to help develop draft guidance on the licensing scheme and planning control areas, with the aim that it is comprehensive, helpful and easy to understand. The stakeholder working group was also tasked with considering any changes that were required to the 2020 Licensing Order.

73. Representation on the group reflected the diverse nature of the short-term letting market, and included members from: local authorities, trade associations, short-term let platforms, VisitScotland, representatives of urban and rural residents, Police Scotland, Scottish Fire and Rescue Service, and the Scottish Government's independent Regulatory Review Group. A full list of current, and previous, members can be found at: Short-Term Lets Stakeholder Working Group - gov.scot (www.gov.scot).