Short Term Let Licensing Update
Perth and Kinross Council · 10 March 2025
Back to Licensing Committee — 10 March 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Licensing Committee Date of Meeting: 10 March 2025 Report Title: Short-term let Licensing Update Report Number: 25/42 Report Author: Sarah Rodger, Legal Manager Organisational Lead: Lisa Simpson, Strategic Lead Legal and Governance 1. Purpose 1.1 The purpose of this Report is to update the Committee in relation to the Short- term let Licensing Scheme and seek approval of an updated Short-term Lets Licensing Policy Statement. 1.2 Sections 1. Purpose 2. Recommendation(s) 3. Background/Context 4. Implementation update 5. Policy Statement update 6. Fees 7. Compliance and Enforcement 8. Renewal of licences 9. Conclusion 10. Impact Value Assessment 11. Appendices 2. Recommendations 2.1 It is recommended that the Committee: 2.1.1 Notes the content of the report regarding implementation of the short-term let licensing scheme, and 2.1.2 Approves the updated Short-term Lets Licensing Policy Statement.
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3. Background/Context 3.1 The legal requirement to licence short-term lets was introduced by the Scottish Government in 2022 and came into force on 1 October that same year. Scottish Government Guidance states that the aims of the licensing scheme are: To ensure short-term lets are safe and address issues faced by neighbours, To facilitate licensing authorities in knowing and understanding what is happening in their area; and To assist with handling complaints effectively. 3.2 In addition to the legislation, the Scottish Government issued non-statutory guidance to assist licensing authorities. It also issued guidance to letting agents and platforms, hosts and operators. The guidance indicates that all licensing authorities should have policies in place on certain matters. 3.3 Perth and Kinross Council’s Policy Statement on short-term let licensing was approved by the Licensing Committee on 22 September 2022 (report 22/233 refers). At the same time, the fees for short-term let applications were approved. 3.4 The legislation provided for a transitional period to allow all existing short-term let operators to apply for the new licence. That period ended on 30 September 2023 3.5 The transition period was a challenging one for licensing staff, the Council’s legal advisors, Democratic Services and Councillors who sit on the Licensing Committee. Whilst additional staff were employed within the Licensing team to deal with short-term lets licensing, resources had to be deployed from elsewhere in the licensing team to support them given the sheer volume of applications that required to be processed. Incomplete submissions and inadequate information being provided by applicants added to the demand. Common issues as regards the quality of applications included: Failure to provide evidence that electrical/gas safety inspections had been undertaken Delays by operators in getting the necessary safety checks completed Failure to address safety issues raised in inspections Failure by operators to submit the correct licence application types Failure by operators to respond to licensing staff requests for critical information to progress their applications Failure to engage with Scottish Fire and Rescue Services to resolve outstanding safety issues Incomplete applications submitted by operators. Often, no supporting documents were provided at all.
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3.6 The task was further complicated by “advice” and “guidance” that was circulating from interest groups and other stakeholders which at times conflicted with the legislation and our own policy and procedures. A significant amount of resource was expended in educating operators and trying to mitigate the damage which these mixed messages has done in terms of the Council’s relationship with both applicants and other stakeholders. 3.7 Despite the transition period being one year for existing operators, there was an influx of applications during the last week of the prescribed period which placed an unprecedented level of demand on staff. This was further complicated by the fact that the final day for applications to be submitted was a Saturday. The figures below set out the numbers of applications received during the last week of the transition period: Last week of transition period: 728 applications Final working day: 376 applications Deadline day – 30 September: 180 applications 4. Implementation update 4.1 As at 5 February 2025 there have been 2261 applications for short-term let licences comprising: 1710 applications from existing operators during the transition period from 30 September 2022 to 30 September 2023; and 551 applications have been received from new operators. 4.2 Of these 2261 licence applications: 1930 licence applications were granted. 39 licence applications were granted with Additional Conditions. 2 licence applications were refused. 5 granted licences have been surrendered to date due to sale or closure of business. 7 granted licences have been transferred or are in the process of being transferred. 108 objections and/or letters of representation were received which resulted in 44 licence applications being brought before the Licensing Committee for further consideration. the remaining applications are either still in progress or were withdrawn and resubmitted due to incorrect licence type applications being submitted. 4.3 Dealing with the 108 objections and processing the 44 applications that required to be considered by the Licensing Committee was a time- consuming exercise. Significant time was spent giving guidance to both applicants and objectors on process, grounds and expectations.
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These applications impacted not only on the licensing staff but also officers from legal and democratic services and from the elected members on the Licensing Committee with an additional eight Special Committee Meetings required over and above the eleven scheduled Committee Meetings. 4.4 A further 59 objections or representations were resolved by staff working with members of the public or statutory consultees, prior to being scheduled for consideration by the Licensing Committee. The work required to bring these matters to a satisfactory conclusion whilst significant, does support best value and better customer service in that it helps us to reduce processing times, ensures communities are heard and prospective licence holders are provided an opportunity to resolve concerns expeditiously. It also avoids the need to have matters dealt with formally via the Committee. 4.5 It is encouraging also to note that formal complaints regarding the operation of specific short-term lets have been few and in the main relate to: Complaints of unlicensed short-term let operations Antisocial Behaviour complaints from neighbours Guest experiences (these complaints are referred to Consumer Advice Scotland for rerouting to Perth and Kinross Council Trading Standards where applicable) 5. Policy Statement update 5.1 On 29 August 2024 the relevant short terms lets licensing legislation was amended by way of The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Amendment Order 2024. This amended legislation came into force unexpectedly early on 30 August 2024 giving Licensing staff little notice and no time to implement processes to accommodate the legislative changes which included: Amendment of defined terms included in the 2022 Order to provide further specificity Amendment to exclude specific accommodation provided to guests in hospitals, nursing homes, residential care homes, sheltered housing, amongst others Amendment to provide flexibility to temporary exemption from the requirement to obtain a short-term let licence to specified property Process for provisional licences for premises which have yet to be built for short-term let use. This is similar to the process under Alcohol Licensing. Provision for transfer of short-term let licences to facilitate sale of business or otherwise
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5.2 The Policy Statement (a tracked change copy of which is attached at Appendix Two) has been reviewed to ensure that it complies with the amended legislation, updated Scottish Government guidance, as well as providing further clarification in relation to existing provisions. This now requires to be approved by the Committee. The relevant changes for ease of reference are: An updated list of Additional Conditions which could be applied, as required. Section 5 ‘Planning Considerations before applying for a Short-Term let Licence’ has been removed and will instead be located in a Guidance Note available on the Council website. We have provided explanation about new and updated Excluded Accommodation where a short-term let licence will not be required. We have updated Section 14 to take account of changes in legislation. Section 15 ‘Provisional Licence Applications’ has been added to take account of changes in legislation. Further information will be located in a Guidance Note available on the Council website. 6. Fees 6.1 The current licensing fees are set out within the updated Policy Statement attached as Appendix Two. In line with Scottish Government guidance, the fee structure differentiates between the types of short-term let licence and should be graded to reflect the different size of properties. The fees are also fixed at a level which aims to ensure full cost recovery to the Council in line with Council policy and in line with the Civic Government (Scotland) Act 1982. 6.2 Of the 1930 licences granted in Perth and Kinross only two licences were issued for a period of less than three years. This means that there will be a significant reduction in fee income for financial years 2025/2026 and 2026/2027 as income will only be generated through new applications and other processing such as transfers of licence. It is also worth noting that the legislation allowed 12 months to process all the existing operators who applied during the transition period. Consequently, fee income that was received in 2023 likely related to licences granted in 2024. Those licences will not be due to be renewed until financial year 2027/28. The income to date therefore has to fund the ongoing administration and implementation of the scheme in the interim on the basis of full cost recovery. 6.3 In line with the report previously submitted to the Licensing Committee on 22 September 2022, the fees have been reviewed. This is to ensure that they continue to be set at the right level. 6.4 Consideration has been given to whether economies of scale could be achieved for those hosts who have more than one short-term let. The experience and evidence to date suggests that the mandatory consultation element of the process is the only area where there could be potential economies of scale, because detailed safety and assurance checks still need to be undertaken for each individual accommodation unit.
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As the consultation process with the mandatory consultees is already substantially automated, any saving would be negligible and would be likely outweighed by the costs associated with changing the current internal operational processes. 6.5 Officers remain satisfied that the fees are set at the correct level and reflect the amount of work that is required to implement the licensing scheme properly. 6.6 Incomplete or incorrect data, failure to provide evidence of compliance etc. continues to be an issue which puts pressure on resources. An application received in complete order takes on average 10 weeks to process from receipt to granting of the licence. Legislation provides a nine-month processing period. Where an application is missing information the processing time increases to an average of 31 weeks. This is solely due to applicants not meeting safety requirements or missing critical information to complete the assessment process 6.7 Staff continue to educate and encourage applicants to submit complete applications, providing adequate and extensive information to support them through the process. This back and forth takes significant time and resources. 6.8 While renewal applications theoretically should be swifter to process, our experience so far is that new applications are evidencing the same competency issues in terms of inaccurate and incomplete data, failure to provide necessary certificates etc.. 6.9 From our discussions with other authorities, many have discovered that their fee structure does not cover the true cost of implementing the scheme. A survey of Scotland’s Local Authorities conducted by Scotland’s Housing Network indicates that 75% of respondents either have, or plan to, increase short-term let application fees. Already approved increases range from 2.5% up to as much as 40%. 6.10 We do not propose making any changes to our fee structure with the exception of an adjustment to make provision for the transfer of licences. 7. Compliance and Enforcement 7.1 The approach to compliance and enforcement is set out in the Policy Statement. 7.2 Staff are in the process now of contacting Licensees to evidence compliance on an ongoing basis. There is an emerging concern about a number of Licensees already having out-of-date safety documentation.
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7.3 From a sample of 60 current licence holders canvassed for safety compliance 53 resulted in one or more of the following: 11 failing to respond to licensing staff requests for critical information (work is ongoing to secure compliance) At least 33 failing to provide evidence that electrical/gas safety inspections had been undertaken Delays by operators in getting the necessary safety checks completed 7.4 It is concerning that of the 60 operators sampled, only four continued to meet all of the safety compliance checks. This highlights the need for ongoing safety and assurance checks in order to protect the public. 7.5 Staff continue to encounter resistance to requests for evidencing compliance, as they are legally bound to do. Efforts continue to educate and inform licence holders so as to ensure they understand their responsibilities and our duties as a licensing authority. 7.6 From the sampling of 60 operators, at least 5 properties had been sold or were no longer operating but they had failed to inform the Council. This too creates additional and unnecessary work for the licensing team. 7.7 The Council has no direct enforcement powers in relation to unlicenced operators. This is a matter for Police Scotland. However, Enforcement Officers will continue to engage and work with identified unlicensed operators to ensure that they apply for a licence and obtain all the required safety assurances. Continued non-compliance would result in the matter being referred to Police Scotland. 7.8 Licensing Enforcement Officers will therefore put in a place a schedule of compliance visits with operators whilst also responding to complaints and concerns from members of the public as they arise. 7.9 While consultation with the Perth and Kinross Council Planning Department is not a mandatory requirement given there is currently no Control Area in Perth and Kinross, notification is provided to the Planning Department to assist in their own compliance and enforcement activities. This has resulted in additional work for Licensing staff, and also presumably increased activity for the Planning Department. 8. Renewal of Licences 8.1 On the basis of evidence to date and ongoing compliance issues, it is anticipated that the process for renewal applications will require similar resources to those needed for initial applications for Short-term Lets Licences. 8.2 We will continue to monitor implementation of the scheme as well as reviewing and refining our internal procedures. As previously agreed, we will review the fee structure again ahead of the first renewal cycle. Any proposed changes will be brought back to a future committee for approval.
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9. Conclusion 9.1 Perth and Kinross Council has an appropriate and effective scheme in place for the licencing of short term lets across the area. 9.2 A programme of enforcement work is underway and the Council will continue to work in partnership with Police Scotland and Scottish Fire and Rescue to ensure the ongoing health and safety of the public. 9.3 The fee structure remains fit for purpose and covers the full cost of scheme implementation. Subject to an amendment to include the fee for a transfer of licence, no change to the existing structure is necessary, 10. Impact Value Assessment 10.1 Short-term Let Licensing Fees - IVA 11. Appendices 11.1 Appendix A – Short-term Lets Licensing Policy Statement – revisions shown