Edinburgh Short-Term Lets Operating Without Planning Permission, Figures Reveal

Hundreds of holiday-let properties are operating in Edinburgh despite being refused planning permission, new figures indicate. An analysis by housing campaigners suggests that 800 of the 1,754 entire homes in the city licensed as short-term lets (STLs) have had their planning applications refused.

These properties are able to continue advertising through platforms like Airbnb because they hold a license. Campaigners are urging Edinburgh City Council to increase its use of enforcement powers, which include fining owners who do not possess planning permission. Operators, however, argue that the STL laws introduced in 2023 are not functioning effectively.

The City of Edinburgh Council stated that its licensing policy aims to ensure holiday lets are safe and properly regulated. The legislation was implemented to address housing demand issues and anti-social behavior, particularly in busy areas like Edinburgh.

To operate as an STL accommodation, a license is mandatory; failure to comply can result in a ban and a fine of up to £2,500. Licensing requirements vary depending on whether a spare room or an entire property is being let out.

Properties that began operating as STLs after the city implemented a control zone in September 2022 require planning permission if the owner does not reside there regularly. The rules also mandate planning permission for some residential properties that were converted to short-term lets before that date.

Industry insiders suggest that most entire homes now require planning consent, with a majority of applications being rejected.

What the New Figures Show

The analysis, conducted by Living Rent and Leith Harbour & Newhaven Community Council, examined publicly available planning and licensing documentation. As of September 6, 2023, 1,754 entire flats or houses held relevant licenses. Of these, 1,225 properties lacked planning permission, either because an application was not submitted or had been refused. A total of 800 licensed properties had their planning consent refused and had not successfully appealed.

These holiday lets can continue operating until their license renewal, typically one to three years after issuance. Properties in residential tenements or areas with a high concentration of STLs are frequently among those rejected for planning consent. The council has the authority to take action against STL owners operating without permission, but enforcement is discretionary.

Some owners reportedly submit planning applications to obtain a license, only to withdraw the planning application after securing the license. Living Rent's analysis found 465 licensed STLs had withdrawn at least one planning application, with 110 withdrawing more than one.

Chas Booth, a Scottish Green Party councillor, criticized the council's enforcement and called the legislation unfit for purpose, citing a significant loophole that owners are exploiting. Niall Robb of Living Rent echoed these concerns, stating that the situation demonstrates landlords exploiting weak legislation and a lack of enforcement, impacting tenants and neighborhoods.

'Your stomach drops when you hear the suitcases'

Leith resident Katie Beale described constant issues with guests in neighboring STLs, including noise and unfamiliar individuals in the hallway. She noted that while visitors are welcome, they should be in appropriate locations.

'It feels like an injustice'

Paul Phillips, an STL owner and non-executive director of the Association of Scotland's Self-Caterers (ASSC), is among those whose property has a license but was denied planning permission. He expressed frustration with the current system, stating that properties operating without issue for years may be forced to close when license renewals are due.

Phillips estimated spending around £8,000 on regulatory permissions. He suggested a review and amendment of the regulations to allow compliant businesses to continue operating while addressing problematic or unsafe ones.

Enforcement Action

The City of Edinburgh Council is currently investigating 329 active STL cases, including 117 licensed STLs and 212 unlicensed properties. Last year, an operator of an unlicensed STL was fined £600. Thirty-two cases, involving 52 offenses, have been reported to the prosecution service.

City of Edinburgh Council leader Jane Meagher stated that the licensing policy enhances safety and regulation. She acknowledged the conflict between licensing and planning, noting that the planning committee has requested government intervention. The council has also hired six additional staff members to manage licensing.

Scotland's minister for public finance, Hannah Mary Goodlad, stated that authorities can refuse new license applications if a breach of planning control is suspected and that planning authorities can pursue enforcement action. She added that Scottish short-term lets adhere to consistent safety standards.