Black market f lats for hire amid SNP holiday lets chaos
A BURGEONING black market for flats and rooms is emerging in Edinburgh after SNP legislation sparked accommodation chaos at this year’s Festival and Fringe.
The law, introduced last year, makes it a criminal offence for any property, from a large house to a spare bedroom, to be rented out without a Short-Term Let (STL) licence in place.
However, critics say the licences are complicated and costly and have put off owners from letting.
City of Edinburgh Council’s register this month showed around 1,300 STL licences had been issued, against a previous estimate of around 12,000.
The reduction has led to chaos surrounding this year’s Festival and Fringe, with accommodation costs soaring as supply plummets. Now, a string of sites have sprung up on social media openly advertising Festival accommodation.
One advertiser said: ‘Looking to rent out my flat for the Festivals, so putting this out to check for any interest.’ Another said: ‘I have a room available near the city centre, so feel free to contact me if interested.’
A woman advertised a ‘house in Portobello’. She made no reply when challenged on whether an STL licence was in place. Industry chiefs said it showed a ‘black market’ was now operating.
Fiona Campbell, chief executive of the Association of Scotland’s Self-Caterers, said: ‘When professional operators are being clobbered by the costs and red tape associated with the shortterm let legislation, with many legitimate businesses closing as a result, it is very disturbing to see evidence of a burgeoning black market in Edinburgh.
‘This undermines the entire purpose of licensing and is another example of an own goal by policymakers.’ Louise Dickins, owner of a letting firm, said: ‘Prior to STL licensing, Edinburgh, the Festival city, had a flexibility in the supply of accommodation required.
‘With Edinburgh Council voting against relaxing their licensing scheme, that was, in effect, a vote for a black market to flourish, rather than creating a scheme which is fit for purpose.’ Scottish Conservative business and tourism spokesman Murdo Fraser said: ‘The SNP’s ill-considered tinkering has made matters worse for our hard-pressed tourist sector.’
Operating without an STL licence can result in a fine of £2,500 and a year’s ban from applying for one.
Housing Minister Paul McLennan said: ‘Since we introduced the licensing scheme I have continually engaged with operators and the wider tourism industry to understand how it is working.’
An Edinburgh council spokesman said: ‘Complaints about unlicensed STL properties can be reported by email to the council or via a link on our website.’