x
By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards

TODAY'S OTHER NEWS

Chaos! Bid to regulate Airbnb and short lets in tatters after ruling

A plan to regulate short lets such as Airbnbs has been ruled unlawful by a judge before it even comes into effect.

Landlords in Edinburgh took the city council to court and following a two-day hearing at the Court of Session, Lord Braid agreed that part of the proposal was unlawful.

The council wants to introduce the licensing scheme following complaints about the high number of short-term lets in the Scottish capital.

Advertisement

Opponents of Airbnb have claimed that short lets fuel housing shortages and lead to increased anti-social behaviour

Short let landlords had until October 1 to apply for a licence, with people who list whole properties on sites such as Airbnb also needing planning permission.

Renting out a room in your own home, or letting your home while on holiday, would still be allowed.

Activist groups from across the UK claim the Edinburgh model could have been used as a template for short let regulation nationwide - but that now lies in tatters.

Opponents of the scheme raised £300,000 through crowdfunding for a judicial review at the Court of Session.

Lord Braid ruled that the lack of provision for temporary licences and requirement for some hosts to supply floor coverings went beyond the council's powers.

He said the policy was unlawful because it breached existing laws on what licensing authorities could do under the law.

He wrote in his judgment: “It is not the function of the respondent's licensing authority to decide that a licence should not be granted because a property is of a particular type or is in a particular area.

"For the respondent to adopt a normal practice of not granting an short term licence for premises in a tenement, even where planning permission had been granted, is irrational and contrary to the purposes of the overall statutory scheme.

"It would be perverse and oppressive for the respondent, upon receipt of a licensing application, to require an applicant to obtain planning permission for a tenement property; and thereafter, planning permission having been obtained, to refuse the licence for no other reason than that the property was in a tenement."

The Scottish Government had backed the Edinburgh scheme, claiming that a proliferation of short lets reduced the stock available for mainstream letting.

Rosie Walker, head of litigation at Gilson Gray representing the short let operators who brought the action, says: “The court found that the City of Edinburgh Council’s short-term let licensing policy was unlawful at common law and in breach of The Provision of Services Regulations 2009 for a number of different reasons. 

“Most strikingly they found that it was not for the council, as licencing authority, to decide that a licence should not be granted just because a property is in a tenement.

“Our clients took the brave decision to bring this action against the local authority to protect their businesses and, more widely, to protect an industry that is very important to the Edinburgh economy.

“Short-term accommodation providers create a significant number of jobs in the city and deliver flexible accommodation that hotels and other operators simply cannot – particularly during important events like the Edinburgh Festival. 

“The campaign was the largest crowdfunded legal case in Scottish history, underlining the strength of support for our clients. It comes on the back of years of engagement by the Industry with the Scottish Government and the local authority to try to put in place a workable regulatory framework.”

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.

  • icon

    Wow…. A small victory, but the council’s will be back 🫤

  • icon

    When will the NRLA start using more of their considerable coffers in defending the legal and ligitimate interests of residential landlords? Long,long overdue, in fact so long overdue its now too late IMO.

    icon

    100% agree. They have been completely absent from the debate!! And when the CEO does say something it’s very weak. They need a PR department to counter the barrage of miss-information by the likes of Shelter and Generation rent!

     
    icon

    Wholeheartedly agree with this statement. Simply put they have been absent in any debate and in my opinion pointless in this arena.
    Hence I took the decision to not renew my membership.
    I would add that Landlord's seem to be too independent of each other when we should link together to form a strong voice.
    How may signatures did we get in the end to get the Section 24 debated, not sure we reached the 100,000 that we needed, as an example.

     
    icon

    The £4m reserves should be for the benefit of members otherwise what’s it for?
    RLA was never shy of using Judicial Review despite having far less funding - and never even tried crowd funding. We were totally committed to landlords not the commercial suppliers the NRLA keeps mailing us about rather than campaigning information which it should be sending. I really don’t know how they justify 120 staff.

     
  • icon

    The whole Country in disarray & uproar whether regular letting or the expansion of airbnb. The huge rise in the cost of renting, the shortage of supply and the exit of landlords.
    All deliberately created by Shelter, Mrs May, Generation Rent etc by pushing for removal of Section 21, so removal of S21 must be unlawful the root cause of all this and the very foundation of Private letting, without which millions of people wouldn’t have become landlords at all, so now you take it away you have your answer Chaos, could you expect any other result.

  • icon

    At last someone standing up to the councils. If we had same representation as landlords against S24, S21 removal renters reform etc tenants and landlords would be in a better place and guess what inflation would reduce

    icon

    Have I not been saying this for a long time? That we need to get together and crowdfund and do something about this - nationwide - including Wales, England, Scotland and Ireland.

     
    icon

    Sheila I was part of the judical review concerning section 24, t no avail as the judge dismissed our case. We did something the NRLA did nothing.

     
  • icon

    This is the 'thin end of the wedge', as far as this topic is concerned.
    As I have pointed out before, it was inevitable that the authorities were going to move on from the PRS to Airbnb, as it is a missed opportunity to regulate us even more.
    I have never experienced, in my lifetime, the ever increasing interference from governments and authorities.
    We have come to the stage in this country, where nothing is safe from 'woke' socialists and 'Labour light' Tories, who want to control every aspect of our lives and for us to own nothing and be content with that.

    icon

    I think about emigrating once some close family have died.... How sad is that. I can't stand all this woke lefty nonsense. I'm too scared to do business here. Just stick to PAYE and pensions and ISA (invested in NON-UK companies...).

     
    icon

    Nick, where to emigrate to? Have you looked at anywhere specific?

     
    icon

    Portugal has some good tax deals for expats but they speak Portugese, The Philippines, where I intend to retire, is very cheap, typically 20% of UK prices BUT you must be prepared to eat local food, UK cuisine is available at UK prices. Most people in the Philippines speak English for it is one of the official languages of the country. Malaysia would be another good choice, a country which welcomes foreigners, with a large proportion of the contry fluent in English.

     
    icon

    Richard,
    I haven't looked that far ahead TBH.

     
    icon

    I tried France for 4 years, French look after the French though. Still I enjoyed the experience, but needed to come back for personal reasons.
    I may consider another country again as I cannot see the situation here getting any better anytime soon!

     
    icon

    I might have to do the van life thing. By a transit van, fit it out, make sure it's not a diesel. Travel around like a nomad where I don't stay long enough to need to pay taxes in each country. Put it into Bitcoin as out MPs are addicted to printing more and more money to P up the wall.

     
    icon

    Now Gove wants to stop us eating Pizza - report in the Telegraph.

     
  • icon

    Landlords in England, yes you should beware of removal of Section 21. It was removed in Scotland years ago. I now have people walking into the rental property having just signed a lease giving me their 28 days notice to leave! In essence, using us as a short term stop over! Students can book their room for the academic year and then can move around within the town to be with friends, or wait til they find a flat, rather than share etc,, all with 28 days notice ! it can be chaos and the admin is endless.

    icon

    The Bill reading on 17th May has the notice period in England set at 2 months.
    It is also strongly mooted there will be different rules for student property in England too.

     
    icon

    The big letting agents are sharing blacklists of tenants trying the 29 days and move on trick.

    The 12 groups of students who wanted to see a flat last week are all too aware of the massive shortage of flats in Scotland to give up a hard won flat.

    Despite the worst efforts of the SNP and their little Green helpers renting to students gets round the indefinite tenancies and rent caps - bit God help families wanting to rent in Scotland currently!

     
    icon

    The big letting agents are sharing blacklists of tenants trying the 28 days and move on trick.

    The 12 groups of students who wanted to see one of my flats last week are all too aware of the massive shortage of flats in Scotland to give up a hard won flat.

    Despite the worst efforts of the SNP and their little Green helpers renting to students gets round the indefinite tenancies and rent caps - but God help families wanting to rent in Scotland currently!

    PS. Tried editing this but it posted it twice instead!

     
  • icon

    @John Thomspon - re different rules for student lets - because Ben Beadle NRLA is a student Landlord. I have said this before on this forum but I wonder if one of the reason he keeps saying that "he welcomes abolishment of S21" knowing full well that the majorit of LLs are completely opposed to this is because he has done a quiet "deal" - he will not oppose anti S21 legislation if they let him keep his fixed term student lets. Cannot prove it but as I have said before it has a smell about it!

    icon

    This is my theory. It makes sense for students too. So it's an easy win for the government.

     
    icon

    Nick

    I agree.

    One of the reasons the Edinburgh Airbnb situation has arisen is that many student flats were refurbished in early June then let to tourists until September.

    However since landlords can no longer confidently plan ahead for summer bookings as students often don't get their act together and give reasonable notice , many former student flats are now full time short let's, causing a shortage of student flats and a surplus of short term rental properties outside the peak tourist season. These then become party flats causing neighbours much more disruption than the students ever did.

    The students in turn are forced further out of the city centre into residential areas taking over properties previously let to families who are no longer as desirable tenants as a bunch of students. Their new neighbours are also unhappy with this change of tenant and the students have additional time and expense in travelling to University or College ( assuming they ever do nowadays with lecturers either wfh or on strike).

    The only winners of the new Scottish prs legislation are rogue tenants and landlords like me with the best properties able to command rents undreamt of even 5 years ago.

    Decent tenants, especially families, lose out heavily now in the Peoples Republic of Scotland, with English tenants soon to suffer similarly but no one cares or listens.

     
    icon

    Robert. I think it's terrible what's happening. All these politicians all implementing harmful policies but all virtue signalling they are doing the right thing!

     
  • icon

    Hmm - sounds like scratching backs and things happening under the table .

  • icon

    Why have different rules for Tenants we should all be treated the same.
    Is it because NRLA lobbied for this.
    So it’s removal of Section 21 for some and not for others so you do know what you are doing.
    I have mixed Tenants Students & workers in same property on one Tenancy Agreement joint &
    several so how does that work you meddler’s.

    icon

    It does not work and the meddlers do not care.

     
  • icon

    Please sign the petition:

    "Reverse provisions in Renters Reform Bill to remove Assured Shorthold Tenancies"

    icon

    Signed and asked Graham Norwood to publicise :)

     
  • icon

    Please promote the petition on social media:

    "Reverse provisions in Renters Reform Bill to remove Assured Shorthold Tenancies"

  • icon

    Please share the petition on any landlord focused websites that you can think of:

    "Reverse provisions in Renters Reform Bill to remove Assured Shorthold Tenancies"

  • icon

    Copy and paste the title of the petition into the search engine and it will come up.

    It is not possible to link to anything on this website.

    It is a UK Government and Parliament petition.

  • icon

    Go to
    petition.parliament dot uk/petitions/638746

icon

Please login to comment

MovePal MovePal MovePal
sign up