Business owners have written to the Scottish Government urging ministers to reject city-wide control areas of short-term lets in Edinburgh.
In a letter to Secretary for Social Justice, Housing and Local Government Shona Robison – which attracted 44 signatories from across the sector – they stressed the damaging impact the new measure would have on the capital’s Covid-19 recovery and tourism offering.
It implored the government to consider Edinburgh’s unique position as a festival city and business centre.
The group also warned that the decision will bring “hugely damaging unintended consequences for the city’s economy”, threatening jobs throughout the wider supply chain.
The letter draws on evidence submitted by the Association of Scotland’s Self-Caterers (ASSC) to Edinburgh Council, arguing that the policy misunderstands the nature of self-catering businesses in Edinburgh, and will bring additional pressure on the council’s budget.
It also suggests that the scheme fails to take a “holistic view” of the housing challenges currently faced by residents in the capital.
Late last month, Edinburgh’s councillors backed proposals to make landlords letting out Airbnb-style properties in the capital apply for planning permission.
A third of all short-term lets in Scotland are in Edinburgh, and if Holyrood backs the city council’s proposals to make the capital a short-term let control area, people renting out properties they don’t usually live in will need to apply for a “change of use”.
The Scottish Government – which voted in favour of the plans in January – will now need to agree with the city council, which said the new rules would not block people from renting out rooms or their whole house while on holiday.
The ASSC warned against overly restrictive measures being taken against the sector, which contributes around £70m to Edinburgh’s economy each year.
In addition to the Cabinet Secretary, the letter has also been sent to Finance and the Economy Secretary Kate Forbes, Minister for Public Finance, Planning and Community Wealth Tom Arthur, and Minister for Tourism Ivan McKee.
ASSC chief executive Fiona Campbell said: “Edinburgh’s self-caterers play a key role in ensuring that the city maintains its position as a world-leading destination for tourists and this excessive measure threatens that with extinction.
“Rather than biting the bullet and building more homes, this measure targets an important sector in the economy and will have massive negative ramifications, while doing nothing to increase the availability of homes.
“It is for this, and the other reasons highlighted in this letter, that we are calling on the Scottish Government to see sense, back small business, and reach a sensible, pragmatic, and fair solution that works for all.”
Eddie Harper, founder at Harper’s Concierge Services, added: “Our business relies on approximately 90% of properties within shared stairs, and the new planning requirement along with licensing means we would likely close down.
“This will result in three direct job losses, along with at least 25 cleaning and laundry support staff losing income and potentially going out of business, as they all rely on our existence for their own business.”
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