SNP rebel Ewing warns short-term let licensing scheme will ‘decimate’ sector

Former tourism secretary and SNP rebel Fergus Ewing has urged the First Minister to “show leadership” by pausing and reviewing a new licensing regime for short-term rental properties.

He said the scheme – which is due to come in on October 1 – will “decimate” the sector in Scotland, as he insisted short-term lets such as those available on Airbnb are vital not only for holidaymakers, but also for people who work away from home.

Figures published by the Scottish Government on Thursday showed that at the end of March, 2,587 valid applications for short-term let licences had been received – including just 90 from the owners of self-catering properties in Edinburgh and only 78 in Glasgow.

Humza Yousaf recently ruled out extending the deadline for applications beyond October 1.

He repeated that stance on Thursday, saying ministers had already granted one extension “because we believed it was the right thing to do at that time”.

But the First Minister insisted there had been “quite a considerable amount of time” for those with short-term rental properties to put in an application.

Warning that business owners who carry on trading after October 1 without having applied for a licence could be risking a hefty fine, or even prison, Mr Ewing claimed the Government would “be criminalising law-abiding, hard-working people”.

Speaking on BBC Radio Scotland’s Good Morning Scotland programme about the short-term let sector, he said: “I was the tourism minister for over six years in all and came to understand how important this is for tourism… not only to tourism but providing accommodation for workers who need to work away from home.

“They are the lifeblood of tourism but also important to society as a whole.

“As of the beginning of August, only a very small number of these premises had made an application for a licence and only about 8% granted across Scotland.

“In Edinburgh a staggering 97% of businesses haven’t submitted an application.

“So there’s no way, not a cat’s chance, that these applications can be dealt with by the deadline.”

The former rural affairs secretary, who has also spoken out against the Scottish Government over stalled plans for a deposit return scheme and highly protected marine areas, has now joined with Conservative, Labour and Liberal Democrat MSPs to sign a letter urging Mr Yousaf to pause the initiative.

Mr Ewing insisted the public want to see politicians “work cross-party” instead of the SNP’s “dalliance with the extremist Green Party” in Government.

Calling for action from Mr Yousaf, he added: “It would be a tremendous credit to the First Minister, who says he wants to reset business relationships, if he can show real leadership and say ‘these regulations, we haven’t got them right at all, let’s go back and have a look at them’.”

Mr Yousaf told the PA news agency he had “no issues” with Mr Ewing raising his concerns, but added: “I hope he would do so in a constructive manner.”

The Scottish Government meanwhile stressed that no applications submitted for a short-term let licence have been refused as yet.

The figures show that of the 2,587 valid applications received by the end of March, 848 (33%) had been granted with no additional conditions while 102 (3%) had been granted with some additional conditions.

At that time, 1,625 (63%) of applications were still awaiting determination.

Housing minister Paul McLennan said the new licensing regime will ensure short-term let properties are regulated in the same way as other types of accommodation, such as hotels and caravan parks.

He stressed that “quality short-term let accommodation is vital to Scotland’s tourism sector and wider economy”.

Adding that there has been a lead-in time of almost two years to the October deadline, the minister said “many more” businesses have applied in recent months.

He continued: “Operators can take confidence that local authorities are working pragmatically to support new licensees through the application process – and we can see from the information that no completed applications had been rejected in the period, or since.

“I would repeat calls to everyone within the industry to back the scheme and encourage short-term let operators to apply for a licence in good time and before the October 1 deadline.”

Maree McLeod, who lets out a property in Reay, near Thurso, said: “The licensing scheme will ensure guests know properties like ours are of the highest standard and are compliant with the latest safety regulations.

“I have spent a lot of time and money ensuring our business is of the highest quality. We try our best to do the best. It is therefore pleasing that other short-term lets will be brought to that same level.

“By doing this, Scotland will become an international leader in this market.”

She said applying to her local council for a licence had been “easy and straightforward”.