Holiday crackdown in Scotland and threat of £2,500 fine sparks fury from Airbnb owners

The Scottish capital’s accommodation offering is likely to decrease noticeably when new licensing laws are introduced.

Short-term accommodation owners, like B&B owners, have until October 1 to apply for a licence to legally rent out their property. 

If people fail to apply by this deadline, and they continue to lease out their property, it could lead to them being fined up to £2,500. 

Short-term let companies such as Airbnb have created a lack of housing and increased anti-social behaviour, Edinburgh Council has said.

The measures mean that hosts have to prove their energy performance ratings, demonstrate evidence of adequate insurance and reach several fire and gas safety standards.

The new measures could lead to a significant decline in accommodation choices in the capital and around Scotland.

A paper created for City of Edinburgh Council's policy and sustainability committee was shared on social media by Conservative councillor Iain Whyte, it said: "There is an assumption of an 80 per cent reduction from the Edinburgh 2021 number of active listings reported on Airbnb." 

The average licence fee in Scotland would be £514 for each property for three years, without adding the fee for getting the right certificates, according to findings from the Association of Scotland’s Self-Caterers (ASSC).

Cammy Day, Edinburgh Council's leader, told STV: "To be clear, we've no intention of reducing the number of short-term lets operating in the city by 80 percent – nor do we expect this to happen. 

"We remain absolutely committed to ensuring the whole city benefits from our thriving visitor economy, but it has to be managed and it has to be sustainable – and I continue to believe that fair and effective... controls would be an important step in the right direction."

Ceysa McKechnie, who lives in Edinburgh and rents her spare bedroom on Airbnb, told the Telegraph that she has paid over £1,000 for the documents she needs to apply for the licence. She also needed another circuit board fitted.

She earns £10,000 per annum by putting her spare room on the platform. The room costs £95 to stay a night. “One of the reasons I felt I could do that is because I have supplemental income from Airbnb,” she told The Telegraph. 

She said that there are issues with housing in Scotland’s capital, however, she doubted that the latest policy will help deal with the wider housing crisis.

While Louise Dickins, who owns short-term lets, said to STV: "The Government’s legislation will make Scotland a laughing stock around the world. They seem determined to harm the most successful parts of our economy, business, and people, all the while confused about why they are doing so."