Landlords file claims for unlawful fees tied to Edinburgh’s short-term let rules. Over £300k claimed, possibly exceeding £1M.
A court ruled planning was only needed after the zone started. The council changed rules for older short-term lets, and they now decide on planning case by case. This created confusion. They rejected about 90% of planning applications.
Over 4,000 licenses exist for all kinds of lets. Landlords are now seeking compensation, claiming fees were unlawful. Over 100 landlords filed claims for “unlawful” fees. Fees ranged from £690 to £2,073 per application. The claims total £300,000 so far. More claims could reach over £1 million.
A group called “Justice for Scotland’s Self-Caterers” formed. They say the council’s actions caused distress, and some operators even lost jobs. The group says operators thought they only needed to switch tax status, moving from council tax to non-domestic rates.
The council is now “hounding” them. This hurts a sector that is less than 1% of all homes. The group also says Edinburgh needs self-catering, but the council doesn’t see the effects. This adds costs for operators and visitors.
Another CEO said this is an ideological ban. Legitimate businesses face a threat to their existence. The Scottish Government mishandled these rules, they added.
The rules were not fit for purpose. More compensation claims may come soon. The council was contacted for a response.
Councillors voted to ease short-term let rules. They want to make it cheaper for residents to rent rooms, especially during festivals. The changes removed some requirements. Electrical safety inspections are no longer needed, and Legionella testing is also removed. Guests no longer need copies of safety papers.
This may encourage homeowners to rent rooms to house performers, workers, and visitors. Affordable housing is a concern during the Fringe Festival. Accommodation costs have tripled since 2019.