Victor Frankenstein thought he was helping humanity, but he created a monster. The Scottish Government wanted to curb Airbnb. Instead, it’s created a monster of its own.
From October 1, all short term lets in Scotland - B&Bs, self catering and guesthouses - will need to have applied for a licence that many operators fear is out of their reach.
With just weeks to go to the deadline, less than one in five have signed up. In Edinburgh, home to many of Scotland’s short term lets, there’s a move to replace them with large international hotels and aparthotels.
It’s deeply flawed. First, this is a direct attack on those who are looking for affordable short term accommodation - whether that’s holidaymakers, festival workers and visitors and transient workers.
People who stay in B&Bs, self catering apartments and guesthouses have various reasons, but budget is an important element. This penalises those who can’t afford top end prices.
Edinburgh council estimates 80% will close. Its strategy for filling the grassroots accommodation gap is to invest in its own hotel - the largest in the city- and back a move to high end aparthotels, including one in its old HQ.
These are aimed at wealthy visitors who will eat at the higher end restaurants associated with these developments. It doesn’t help the small Edinburgh businesses currently frequented by short term let guests.
On top of that, it seems profits from some of the new aparthotel developments are heading out of the UK.
While many self catering properties, B&Bs and guesthouses are owned and operated by Scots paying tax on profits in Scotland, that’s not the case for the big boys.
The owners of the latest aparthotel development are resident in Kuwait. The company company that bought the old council city chambers is in UAE ownership.
Neither company had any mention of UK tax paid in their last accounts.
It doesn’t stop there though. It’s argued that shutting down self catering properties will release housing stock to somehow fix a long-term housing shortage in the city - but this seems unlikely.
One or two bed properties will be quickly snapped up by well-heeled parents of students, who may also look at larger properties. Others will go to large landlords who will take advantage of soaring rents.
The bigger places may slightly dilute that market but that simply subsidises wealthier buyers and - outwith Edinburgh - those looking for a second home.
You have to be careful what you wish for. It’s right to want more affordable housing. When the solution clearly doesn’t work, the right thing to do is to press pause and think again. Otherwise you risk creating a monster.
I totally agree! I rent out a bedroom in my home on Airbnb and most of the people who stay with me can’t afford city centre hotels! But I can’t afford the licence and the accompanying paperwork so will cease , like many others, from end of September .
Well said.