There will be 2 pieces of legislation;
- Legislation giving local authorities power to introduce control areas where planning permission is required for change of use of properties used as holiday lets.
his came into force on 1st April 2021 and guidance setting out when hosts would be expected to apply for planning permission has been circulated by the Government. Edinburgh Council has already launched a consultation on plans to introduce a control area covering the city. The deadline for responses is 5th November 2021.
- Legislation requiring all hosts or operators to apply for a license.
Under the proposed scheme all hosts or operators must undergo a fit and proper person test (as landlords do in long term lets) and must confirm that they meet safety standards and licensing conditions. This legislation was delayed following concerns raised about the proposed operation of the licensing scheme but the Government now intends to lay out the legislation in November and to stick to the original timetable for implementation of the scheme as follows;
- 1st October 2022 – Local authorities must establish a licensing scheme
- 1st April 2023 – existing hosts and operators must have applied for a license to keep operating
- 1st April 2024 – All short term lets must be licensed
It’s looking likely that local authorities like Edinburgh City Council will be able to control the number of licenses they award and will determine suitability of properties for holiday letting based on a number of factors including; maximum occupancy, property safety and the impact on neighbouring properties. It looks like holiday lets in shared stairwells will be the main losers through this legislation, which is good news for the long-term rental sector and ultimately for long-term tenants.
If you’re a host with a holiday let property in Edinburgh and are considering switching to long-term lettings, now is a fantastic time to do so with tenant demand through the roof. The long-term letting market desperately needs more homes!
Contact our ambassador team for more information on how we can make the switch quick and easy for you.