Short-term let rules causing mental health rise, say experts

The Association of Scotland’s Self-Caterers (ASSC) recently conducted a membership survey, revealing alarming findings about the detrimental impact of the Scottish Government’s short-term let regulations on the mental health of small business owners. The survey, which involved questioning around 450 operators, highlighted a growing mental health crisis within the industry as a result of the stringent regulations imposed by the government.

In October 2022, a new licensing scheme for short-term let hosts was introduced by the Scottish Government, granting local councils the authority to develop licensing schemes tailored to their specific needs. Alongside this, councils were empowered to establish short-term let control areas to regulate the industry effectively.

Under the licensing scheme, hosts are mandated to adhere to a set of compulsory conditions applicable across Scotland, in addition to any supplementary conditions imposed by their respective council. However, the survey indicated that a significant percentage of operators were struggling with mental health issues triggered by the regulatory changes.

The impact of these regulations was particularly severe in Edinburgh, where nearly 90% of operators reported a negative or extremely negative effect on their mental health and overall well-being. The City of Edinburgh Council implemented a stringent licensing scheme that included additional controls for short-term lets within tenements or shared main door properties.

Overall, the findings revealed that over two-thirds of operators across Scotland experienced a negative or extremely negative impact on their mental health due to the recent regulatory changes. The situation was even more acute in Edinburgh, where 46% of respondents expressed extremely negative sentiments. In other regions such as Highlands, Perth and Kinross, and Argyll and Bute, a substantial proportion of operators also reported mental health challenges arising from the regulatory framework.

Respondents highlighted the emotional toll of the regulations, citing issues such as sleeplessness, anxiety, stress-related health problems, and feelings of helplessness. The financial strain caused by compliance costs, administrative burdens, and licensing delays further exacerbated the situation, particularly for operators reliant on self-catering as their primary source of income.

Amidst these challenges, an independent analysis by BiGGAR Economics underscored the significant contribution of the short-term let sector to Edinburgh’s economy, generating £154 million in GVA and supporting 5,580 jobs in 2023. Despite such positive impacts, the ASSC expressed disappointment in the government’s response to industry concerns and emphasized the need for a balanced regulatory framework that safeguards the self-catering sector and the local jobs it sustains.

Fiona Campbell, the CEO of the Association of Scotland’s Self-Caterers, voiced the industry’s distress over the heavy-handed regulatory approach and its repercussions on mental health. She stressed the importance of well-managed short-term lets as beneficial contributors to local communities and economies, advocating for a more supportive regulatory environment that recognises the efforts of industry professionals.

In conclusion, the survey findings shed light on the widespread distress experienced by Scotland’s self-catering sector, urging policymakers to review and revise the existing regulations to alleviate the mental health burden on operators and safeguard the industry’s future.

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