Airbnb’s controversial Scottish licence review…

A review of Edinburgh’s controversial short-term licences will take place this summer.

City councilors agreed to hold public consultations on existing city policies and conditions. This is consistent with the decision taken in 2023 to review the city’s policy after one year.

Regulatory Convenor Neil Ross says: “The opportunity for everyone to provide input into the way the short-term licensing scheme works was a commitment we made last year. We want to hear how the program has impacted people and businesses in Edinburgh.

“With today’s approval from Committee members, we will now work towards launching public consultations in the summer. I’m sure this will help us better understand how businesses, residents and others view short-term rental policy and regulation in Edinburgh.”

Details of the public consultation will be published on the Council’s consultation website in the summer and a report setting out the results and further recommendations will be produced in the autumn.

In the spring, Airbnb published its own comments on the various restrictions placed on short lets and hosts in Scotland.

In its comments section, the short-term rental platform said: “Scotland’s accommodation sector is currently experiencing supply disruptions that will limit accommodation options for visitors, limit flexible income opportunities for families and hit small businesses that rely on tourists visiting Scotland – especially outside the typical tourist places.

In April 2024, Edinburgh Council only granted 29% of full short-term rental licences, raising concerns about the city’s ability to accommodate tourists, particularly during the upcoming peak summer and festival season.

Amanda Cupples, general manager for Airbnb Northern Europe, added: “The data shows that Scotland’s short-term rental rules are not delivering benefits for local families. Since the licensing scheme was introduced, hotel and rental prices have risen, tourism is expected to suffer and families have lost an important source of flexible income.

“Airbnb is working with governments around the world to balance the benefits of short-term rentals with local housing issues. We hope that together with Scotland we can develop a policy that benefits everyone.”

Hotel prices in the city are a direct result of the city government’s short-term rental policy.

Hotel prices in Edinburgh are up 9% in 2024, part of an overall increase of 82% since 2019, according to Lighthouse.

It’s worth noting that this price increase was more pronounced during the popular months, with increases of 14% in April, 21% in May and 12% in November.

Airbnb says: “As prices rise, the dream of visiting Scotland is becoming unattainable for many people, especially families and groups who need multiple hotel rooms, while local residents and businesses that rely on travel tourism are suffering the consequences “.