Short-term lets – licensing scheme and planning control areas: business and regulatory impact assessment
Business and regulatory impact assessment (BRIA) relating to the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2021 (“the Licensing Order”) and the Town And Country Planning (Short-Term Let Control Areas) (Scotland) Regulations 2021 (“the Control Area Regulations”).
Footnotes
1 All Scottish Government consultation and research documents on short-term lets from 2019 and 2020 referred to in this document can be accessed from www.gov.scot/publications/short-term-lets/.
3 The Green Book notes, “The rationale for intervention can be based on strategic objectives, improvements to existing policy, market failure or distributional objectives that the government wishes to meet.”
4 www.gov.scot/publications/research-impact-short-term-lets-communities-scotland/
5 www.gov.scot/groups/regulatory-review-group
6 The Scottish Government had follow-up conversations with officials from City of Edinburgh Council, Glasgow City Council, West Lothian, Argyll & Bute Council and Highland Council.
7 See www.airbnb.co.uk/help/article/1379/responsible-hosting-in-the-united-kingdom, www.assc.co.uk/policy/code-of-conduct and www.ukstaa.org/policy.
8 The revenue from these fines would go to the Scottish Consolidated Fund.
9 As it was in May 2019.
11 https://news.airbnb.com/wp-content/uploads/sites/4/2019/06/Airbnb%E2%80%99s-Impact-in-Scotland.pdf
12 Paragraph 3 of schedule 2.
13 From 1 April 2020, see www.mygov.scot/renting-your-property-out/registration/.
14 Licence Income from Fees 2018/19, City of Edinburgh Council (9 January 2020) available at: https://democracy.edinburgh.gov.uk/documents/s12361/Item%207.1%20-%20Licence%20Income%20from%20Fees%202018-19.pdf
15 Open for Business: LGA Guidance on locally set licence fees, Local Government Association, available at: www.local.gov.uk/sites/default/files/documents/5%2013%20%20OpenForBusiness_02_web.pdf
18 scottishtourismalliance.co.uk/wp-content/uploads/2020/10/Tourism-Task-Force-recovery-plan.pdf
19 www.legislation.gov.uk/ssi/2020/344/pdfs/ssifia_20200344_en_001.pdf
20 www.gov.scot/publications/monthly-gdp-september-2020/
21 This relates to the change in the quantity demanded of a good in relation to a percentage change in its price. The more inelastic this is, the smaller the reduction in the quantity demanded of a good for a given change in price.
22 Patrick Robinson, Director of Public Policy for Airbnb writing in The Times (online edition) www.thetimes.co.uk, Airbnb regulations will still the beating heart of tourism, 23 November 2020.
23 https://news.airbnb.com/wp-content/uploads/sites/4/2019/06/Airbnb%E2%80%99s-Impact-in-Scotland.pdf
24 A host currently pays non-domestic rates if their property is not their main residence and intended to be let commercially for at least 140 days per year.
25 In meetings and correspondence.
26 https://news.airbnb.com/wp-content/uploads/sites/4/2020/10/ScotlandShortTermLetsProposal1310.pdf
27 As set out at section 225 of the Criminal Procedure (Scotland) Act 1995.
28 Rounded to the nearest pound.
29 Comprising £445 for determining the application and £150 for inspecting the premises over the three years of the licence.
30 Dundee charges £58 for additional inspections.
31 Fife charges: £190 for a pre-application inspection; £100 for a missed appointment; and £24 for reissuing a licence.
32 Estimating one hour’s work and £5 for materials. Cost of time for applicants in industry is £17 per hour (for reading regulations and filling out forms, etc.). This comprises average (median) gross hourly pay in the Scottish Real Estate sector of £14 in 2020 (ONS, Annual Survey of Hours and Earnings, Table 5.5a, all earnings), uplifted by 22% to reflect non-wage labour costs (as per UK Government Regulatory Policy Committee guidance note on implementation costs).
33 See www.checkatrade.com/blog/cost-guides/gas-safety-certificate-cost/ where they recommend budgeting £80.
34 Assuming one hour’s work (see footnote 32).
35 In 2017, this was estimated at £200 per property, see table following paragraph 198 in www.gov.scot/publications/energy-efficiency-condition-standards-private-rented-housing-scotlands-energy-efficiency/pages/5/
36 See https://www.gov.scot/publications/fire-and-smoke-alarms-in-scottish-homes/ on minimum standards for fire alarms
37 A price of £150 to £180 is quoted for a two bedroom house at www.propcert.co.uk/eicr-cost
38 See https://pricethisplease.co.uk/pat-testing-cost/, the likely range is £70 to £120.
39 Assuming the host took two hours to do this themselves (see footnote 32).
40 Estimate taken from the BRIA accompanying the Energy Performance of Buildings (Scotland) Regulations 2008(SSI 2008/309) see www.legislation.gov.uk/ssi/2008/309/pdfs/ssien_20080309_en.pdf (page 11).
41 Ballpark estimate, depends on detailed circumstances.
42 Ballpark estimate, depends on detailed circumstances.
43 Assuming 2.5 hours work at £17 per hour (see footnote 32).
44 Note that it is possible to apply for a CLUD for a proposed change of use with a lower application fee. An application for a CLUD for a proposed use would be on the basis that there would be no material change of use so is not relevant in a control area.
45 https://news.airbnb.com/wp-content/uploads/sites/4/2020/10/ScotlandShortTermLetsProposal1310.pdf
Contact
Email: shorttermlets@gov.scot
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