MSP: £20m cost of short-term lets boom

Airbnb and short-term let owners in Scotland are costing the public purse £20 million a year in tax breaks, according to Labour.

Nearly 10,000 properties have been removed from the council tax system and moved on to non-domestic rates, with more than 80% receiving a 100% discount through the small business bonus scheme.

Labour said £19.7m was lost in tax relief last year. Housing spokesperson Mark Griffin said: “Parts of Scotland are buckling under pressure from this explosion in short-term lets – and communities are paying millions for the privilege.”

Earlier this month Edinburgh Council tightened rules on short-term lets, requiring new owners of such properties to secure planning permission first.

The Scottish Government said yesterday that it was committed to restarting work on a visitor levy that had been paused at the onset of the Covid-19 pandemic.