Self-catering business owners in Edinburgh are raising concerns that further reductions in short-term lets could cost the city £57 million.
A recent report highlights that Edinburgh’s economy might suffer significant losses if restrictions on short-term lets increase, even though these accommodations account for less than 1% of the city’s housing.
Two years ago, Edinburgh Council implemented a scheme requiring short-term let owners to apply for planning permission, aiming to regulate the industry.
However, campaigners warn this could lead to a “crisis in Scottish tourism,” potentially costing jobs without easing housing pressures.
Analysis by Edinburgh-based consultancy BiGGAR Economics estimates that the self-catering sector contributes approximately £154 million to the local economy and supports about 5,580 jobs in 2023. The report, commissioned by Justice for Scotland’s Self-Catering (JfSCC) and STL Solutions, assessed the economic and fiscal impacts of short-term lets (STLs), their influence on business and tourism, and their effect on housing supply.
Victoria Leask, who owns a cleaning company primarily servicing short-term lets, reports her business has already been affected. Speaking to STV, she shared: “We’ve lost a lot of clients due to them not being approved for their license and it’s very worrying. We’ve gone from having 15 jobs in the diary to maybe three to five a day.”
Iain Muirhead, who rents out five properties on a short-term basis and has had all his licenses approved, still fears for his business’s future. Speaking to STV, he noted: “I think the issue is actually the planning permission aspect of licensing. I support licensing for health and safety reasons but feel it’s being used to shut down many short-term lets.”
Despite short-term lets comprising less than 1% of Edinburgh’s housing, they generated over £150 million for the city’s economy last year and supported over 5,000 jobs. The report indicates that a 0.5% reduction in secondary let properties could cost Edinburgh £57 million.
It also highlights that empty homes in the city outnumber secondary lets fourfold, at 4%. Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, emphasized: “I think it’s very clear now what economic value we provide to the Edinburgh economy and if data isn’t used when making policy decisions then we have a fundamental problem.”
Edinburgh City Council is reviewing feedback from a public survey on short-term lets and plans to report its findings later this year.
Council leader Cammy Day told STV: “I continue to firmly believe that everyone benefits from Edinburgh’s thriving visitor economy, but it has to be managed and sustainable… Our new regulations have been in place for a year now and early signs are promising.”
The council aims to balance retaining residential properties as homes while supporting local economic benefits from tourism.
