The Association of Scotland’s Self-Caterers (ASSC) has lobbied MSPs and circulated a new briefing paper setting out the dire state of affairs, highlighting a “veritable smorgasbord” of problems hitting the sector – be it excessive enforcement, legal inconsistencies, maladministration, or the undermining of health and safety – all stemming from the inadequate legislation from the SNP Scottish Government.

Back in October 2021, the then Cabinet Secretary for Housing Shona Robison committed to a review of the STLs regulations. By 2025, the evidence is now undeniable: these policies have damaged the self-catering industry. However, sectoral pleas have continued to fall on deaf ears.

The ASSC’s briefing has been shared with Scottish Government Ministers and all MSPs. It analyses the challenges facing self-catering operators, particularly in Edinburgh, where recent court rulings and enforcement actions have created a climate of legal uncertainty and financial hardship.

Key Points:

• Legal Challenges and Maladministration: Edinburgh Council has faced three legal defeats regarding its STL policies. Despite judicial rulings confirming that planning permission is not mandatory for businesses operating before September 2022, the Council continues to demand unnecessary planning applications, burdening operators with excessive costs. Over 100 complaints of maladministration have been lodged, with projected costs exceeding £1m.
• Unjust Enforcement Actions: Licensed self-catering operators are being subjected to enforcement action, including cases referred to the Procurator Fiscal, despite pending planning appeals. These actions have been described as “oppressive and disproportionate” by Lord Braid, raising serious concerns about potential violations of the Human Rights Act.
• Health and Safety Concerns: The decision to abandon key health and safety requirements for temporary exemptions during Festival periods has created a two-tier system, exposing guests and operators to unnecessary risks.
• Economic Devastation: the ASSC has lost 15% of its membership since the STL regulations were implemented. The decline in available self-catering properties is reducing accommodation options, increasing costs for visitors, and damaging local economies, particularly in rural and island communities.

In response, the ASSC has suggested 5 key reforms from government to ease the present crisis:

1. Moratorium on Planning Enforcement Actions – Suspend enforcement actions until clear legal standards are established.
2. Introduction of a New Use Class for STLs – Create a distinct planning category to remove ambiguity and ensure fair application of regulations.
3. Enforcement of Procedural Safeguards – Ensure local authorities adhere to due process, including proper notice periods and appeal rights.
4. Clarification of Short-Term Lets’ Role in the Housing Market – Address disparities in regulations affecting STLs, second homes, and vacant properties, with the latter two outnumbering self-catering units in every local council area.
5. Engagement with Industry Stakeholders – Work collaboratively to develop a fair and sustainable regulatory framework.

The sector believes the Scottish Government must act now to finally rectify the failures of the STL licensing regime. Without urgent reform, the self-catering sector will continue to decline, with severe repercussions for Scotland’s broader tourism economy.

Fiona Campbell

Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said: “This crisis is the direct result of heavy-handed regulations that have ignored the needs and value of legitimate self-catering operators.

“The Scottish Government has failed to deliver on its promise to ensure fair oversight, and instead, we are witnessing the slow destruction of a sector that supports thousands of livelihoods across Scotland.

“Too many operators have been left in an untenable position. There’s a veritable smorgasbord of problems at local authority level from maladministration, inconsistent legal interpretations and unjust enforcement action, all originating from national legislation that remains unfit for purpose.

“The ASSC have identified reforms which can help protect self-catering and ensure a fair and transparent regulatory environment. We are calling for urgent intervention from government before more local businesses are forced to close their doors. They must act now to rectify this injustice and ensure self-catering operators receive the fair treatment they deserve.”