Impact of Short-term Letting

– in the Scottish Parliament at on 18 January 2018.

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Photo of Patrick Harvie Patrick Harvie Green

3. I am sure that the First Minister is aware of some of the work that my colleague Andy Wightman has done with his homes first campaign, drawing awareness to the impact of the incredible rise in short-term letting. It is an impact that is being felt in Edinburgh as well as around the country. It is damaging to communities. It raises the cost of properties that are let as permanent homes for people to live in. There are examples close to the Parliament of entire stairwells that have been turned over to short-term lets, save for a single lone resident, which has a terribly damaging impact on people’s mental health.

The changes announced today by one major platform, Airbnb, will not undermine the business model of those who want to convert entire properties to short-term lets. Does the First Minister accept that there is a huge difference between what is generally called the collaborative economy, whereby people put a spare room in their home up for short-term let, and the conversion of entire properties to what are effectively mini-hotels, which operate without paying any business taxes and distort the housing market in the way that I described?

Photo of Nicola Sturgeon Nicola Sturgeon Scottish National Party

There are a range of important issues to consider, which Patrick Harvie is right to raise. I certainly understand the pressure in some parts of the country, although not all parts, for new controls over short-term letting of residential properties. We will certainly consider any appropriate changes in the period ahead.

Patrick Harvie mentioned the collaborative economy. I know that he will be aware that there is currently an expert advisory panel on the collaborative economy, which has been gathering a wide evidence base on a range of topics, including short-term lets. The chair of the panel, Helen Goulden of the Young Foundation, met the Cabinet Secretary for Economy, Jobs and Fair Work earlier this week. We understand that the panel’s full report is due to be published shortly and we will certainly consider its recommendations and then make a decision on what action it is appropriate to take.

Photo of Patrick Harvie Patrick Harvie Green

I am certainly aware that the report on the collaborative economy is due soon and we will all take an interest in it because there are many opportunities in that economy. However, I repeat that there is a huge difference between the collaborative economy and the exploitative housing economy that we are beginning to see. Airbnb itself is a member of the Government’s expert group on the collaborative economy, so we should not look to it for solutions to that particular problem.

The impact on the housing market is our responsibility as a Parliament and the First Minister’s responsibility on behalf of the Government. We can resolve those issues only by giving councils the power to regulate. That could be done relatively simply. The Government can allow councils to use planning use class orders to make it clear that there is a distinction between a home being a home and a home being converted into a mini-hotel using continual short-term lets.

Does the First Minister agree that there is an important distinction between the collaborative economy and the exploitative economy? Does she agree that councils should have the option—which no council would have to use if it did not think that there was a problem—to use the mechanism that I described to control the growth of short-term lets and ensure that the housing market operates for homes first?

The First Minister:

I make a point of clarification. Patrick Harvie said that Airbnb is on the expert panel. I understand that that is true, but it is important to point out for balance that so is the Scottish Trades Union Congress. We should be interested in the recommendations that the panel brings forward.

I recognise the distinction that Patrick Harvie makes—indeed, I think that I did so in my earlier comments. I think that everybody would recognise that distinction. It is important to point out that it is for the planning authority, which in Edinburgh would be the City of Edinburgh Council, to consider the evidence on a case-by-case basis on whether the principal use of a property had changed from residential to business. I know that some argue that new powers are required. I am not ruling that out.

The expert panel is meeting right now. I readily acknowledge that it is taking evidence on a range of issues, but it is looking at the issue of short-term lets. Given that its report is due to be published shortly, it makes sense to wait for that, consider the evidence and recommendations that it brings forward and then decide what changes might be appropriate and bring them forward at that time. We will continue to look carefully at this matter and we will continue to listen to ideas from across the chamber and from a wider perspective.

The Presiding Officer:

We have some additional supplementaries. The first is from Ivan McKee.