Edinburgh housing: Tenants welcome passing of Short Term Lets guidance but say it must go further

Almost a third of the country's Short Term Lets are in Edinburgh.

Tenants have welcomed The City of Edinburgh Council passing a licensing scheme on Short Term Lets (STL) that they say will lead to a reduction of the number of short-term lets in the city.

The guidance will ensure that all short term lets are regulated and comply with necessary health and safety measures.

Tenants’ union Living Rent say that STL’s have exploded across Edinburgh in the last decade pushing residents out of the city due to the lack of flats available to rent. They describe the licensing as a “step in the right direction” for STL controls in Edinburgh and hope that they will go some way in ensuring that prospective residents are able to find a place to live. However, they say that the council still has a lot to answer for on how it will deal with enforcing the scheme.

Tenants’ union Living Rent say that Short Term Lets have exploded across Edinburgh in the last decade pushing residents out of the city.

In June, the council’s STL licensing guidance was in part declared “unlawful” by the Edinburgh Court of Session after short term let operators raised £300,000 to challenge the guidance. Critics of this ruling said that the guidance went through two consultations before it was brought forward, during which 88 per cent of respondents were in favour of better regulation.

This licensing guidance has now been passed as part of a two pronged approach to deal with short term lets in Edinburgh. In April the council passed planning guidance, distinct from licensing guidance, which will make it harder for STL’s to be granted planning permission, particularly in shared stairwells, in larger properties, in quieter and residential areas, and in properties with a shared garden.

Eilidh Keay, chair of Living Rent’s Short Term Lets campaign said: "This is welcome news for Edinburgh’s tenants. The approved guidance is a crucial tool in empowering the council to reign in the proliferation of short-term lets, pushing us a step closer towards a city that prioritises homes not holiday lets.

“Edinburgh is grappling with a housing crisis, and the unchecked surge in holiday lets over the past decade has only made this worse. Our city is not just a tourist attraction – it's a living community and its residents deserve stability and security.

“The council's acknowledgment of this reality by designating Edinburgh Scotland's first Short Term Let Control Area reflects an understanding that our city's character hinges on the well-being of its inhabitants, not transient visitors.

“But the council needs to give both residents and tourists alike the message that it will tackle enforcement issues head on.”

As Edinburgh gears welcomes 400,000 visitors to the Fringe this month, the tenants’ union says that Edinburgh is in desperate need of better STL regulation to ensure that residents are able to find places to live and protect tourists from illegal and scam holiday lets. Recent research by Admiral suggests that there are 278 renters per 100 rentals in Edinburgh at the moment.

Eilidh added: "There are also concerns about temporary exemptions stated in the policy, which will see tenants pushed out of their homes as landlords try and make a quick buck during the Fringe.

“We will continue to hold the council accountable to ensure that these measures are properly enforced and they uphold their commitment to our city’s residents. Through coming together we will reclaim our city from the clutches of a housing crisis worsened by unchecked short-term lets."

It is currently unknown how many STL’s there are in Edinburgh, with estimates ranging between 7,000-10,000. However Edinburgh remains one of the UK’s primary hotspots for tourists, particularly during August when tourists flock to both the Edinburgh Fringe Festival and Edinburgh International Festival.

Approximately one in three of Scottish Airbnb listings are in Edinburgh, and Edinburgh’s Old Town has a larger proportion of holiday lets than any other area of the UK, with 29 listings per 100 properties

The high density of holiday lets in Edinburgh is having an impact on the number of properties available to rent. Living Rent says that due to a lack of rental properties, landlords are driving up rents, safe in the knowledge that their properties will be filled. As a result, Living Rent claims rents have climbed up to £1,303 for a two bedroom property, a 16.2 per cent increase on the previous year.