Tag Archive for: letting

Regulation for short term lets Scotland

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Regulation for short term lets Scotland

A proposed scheme to regulate short-term lets in Glasgow will go out to a public consultation.

The new licensing scheme follows changes to the recent Civic Government (Scotland) Act 1982, which allows local authorities to introduce a licensing framework for short-term rental property owners to abide by.

However within this scheme there are several property types that are except from inclusion. These include licensed accommodation, hotels and mobile accommodation, as well as health and education accommodation.

 

apply for a short term license for your residential accommodation

What does the short term license scheme set out to do?

The scheme sets out limits on the number of people that can stay in a property depending on the number of rooms available. In addition, it calls for fire, gas and electrical safety standards to be met with a test to licence holders.

It will be an offence to operate as short-term let without a licence and there is also a complaints process for neighbours and tenants under the revised civic government legislation.

Public liability insurance would be required for the duration of any let and licence holders are required to act reasonably in relation to maintenance for any communal areas. In addition, waste management is highlighted and finally, key boxes can only be attached to a property with prior, written permission of owners or the relevant authority.

 

apply for a short term license as per Scottish government legislation

When will the short term license come in to action?

All short-term lets are expected to be licensed by Aril 1, 2024. The operator of any short-term let that existed prior to October 1, 2022 will have until April 1, 2023 to submit a licensing application.

Current planning policy in Glasgow indicates that flats used for short stay accommodation are required to gain planning permission and licensing applications must be accompanied by proof that planning consent is in place. Planning permission is not required for home sharing, secondary letting for a house and home letting for a house.

 

Scottish Parliament have actioned license for short term lets in Scotland

The benefits of license applications

Councillor Alex Wilson, chair of the Licensing and Regulatory Committee, believes that this legislation will give safeguards to neighbouring properties used for short-term lets.

He said: “Online booking for short-term lets has transformed where people stay for their holidays and made it far easier for property holders to get involved in the rental market. But this explosion in short-term lets also directly impacts upon those living in neighbouring properties and can affect their quality of life if a let is poorly managed.

“This draft policy is an attempt to redress the balance and give other residents some comfort that the short-term let in their close or community will be operated safely and appropriately. The policy sets basic standards that any reasonable host should be able to achieve and so provide reassurances to neighbouring residents, but also those who rent the property.

“But it is vitally important that this policy is developed in conjunction with the community at large. We will be seeking views directly from a range of stakeholders, but our consultation on this issue will be open to all and we urge anyone with an interest in this issue to contribute their opinion. Full details of how to respond to the consultation will be released in due course.”

 

new legislation for all existing short term lets in Scotland

Further information of applying for a short term license

If you are still unclear on whether you meet the licensing requirements, a full version of the draft policy is available on the Glasgow Council website. Here you can also fill out your application form should it be deemed necessary for you to apply for a license.

rental property within Glasgow

Rent in Scotland reaches record highs

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Rent in Scotland reaches record highs

According to a recent report there has been a spike in demand for inner city homes, pushing rents to record highs – great news for landlords, but less so for renters.

Following the pandemic, demand for urban homes fell drastically as tenants prioritised inside and outside space to enable them to work at home, school their children and socialise without leaving their property. Moving to more rural areas enabled people to get more space for their money. In addition, corporate, student and short-term lets were no longer in demand as we faced months of restrictions.

The quarterly report shows that prices for rental properties in Glasgow have increased significantly as supply cannot keep up with the current demand. It gives an overview of the lettings market for the first Quarter of this year and shows that demand for rental properties in both rural and urban areas is in high demand, but the number of available houses and flats was higher only slightly higher than the historic low reported in the fourth Quarter of last year.

Although there are slightly more properties than the end of last year, this doesn’t look like it’s going to improve in the short-term and this could further push up rents – especially as many landlords are exiting the market.

 

earnings from a house to rent Scotland

What you can expect to pay/ earn from rental properties in Scotland

The average monthly rent in Scotland went up by 8.5% year on year to £896 with the average time to let is currently less than three weeks, standing at just 20 days. More than 35% were let within one week and 77% were let within one month.

In Glasgow there was a 16% annual increase bringing the average rent to £972. Meanwhile Edinburgh saw the average rent rise by 14% year on year reaching £1,214 per month.

 

lettings options decreasing within glasgow city centre

The current housing market in Glasgow

It appears that city living has made a comeback following the pandemic. Offices have reopened, universities and colleges are now teaching students in-person, and there is once again demand for people living close to public transport. In addition, with rising interest rates and mortgage costs rising, first-time buyers are finding it difficult to secure a mortgage and continuing to rent whilst they save.

We are seeing a cost-of-living crisis due to the conflict in Ukraine, the economic recovery from the pandemic and the rise in inflation. Despite this, the market is very busy as people want to get back to normal and press ahead with plans that were put on hold.

There is still a real concern about the supply of properties available in the lettings market, especially in Glasgow City Centre and the ever-popular West End. Many landlords are selling up whilst the market is still buoyant and asking prices are high – again due to lack of supply. In addition, many landlords are trying to avoid the threat of increased legislation and taking steps to alleviate their own cost of living.

 

properties available to rent within glasgow city centre and west end

Get in touch with us to discuss available property to rent

We have a number of houses to rent within Glasgow, to discuss our current options, please get in touch via 07833 564331 or email innes@home-west.co.uk.

Or indeed, if you’re considering letting your property, talk to us today to get advice and an overview of the market here in Glasgow’s City and West End markets.