Dundee City Council is being threatened with legal action unless it amends its short-term letting policy.
The Association of Scotland’s Self-Caterers [ASSC] has warned the council it could face a judicial review of its short-term let licences.
The leading tourism body has additionally urged Dundee’s short-term let and Airbnb providers not to apply for “unlawful” new licences.
Airbnb policy ‘costly and complicated licence’
The ASSC says it is taking action against a new SNP policy requiring anyone renting out a property short-term, from a castle to a spare bedroom, to obtain a ‘costly and complicated’ licence.
The group says the policy could cost Scotland £150m and cause the axing of 10,000 jobs.
The threatened action against the local authority follows on from a Court of Session decision earlier this year that ruled City of Edinburgh Council’s implementation of its scheme as ‘unlawful’.
Although the licences are a Scottish Government scheme, the responsibility for running them lies with each of the local councils, leading to 32 different schemes and further accusations of confusion.
In Perth and Kinross, the owners of a city restaurant fear the council’s short-term let policy could destroy their property business.
Court action threatened against ‘unlawful’ Dundee scheme
Fiona Campbell, CEO of the ASSC, said: “We have sent Dundee City Council a pre-action notification.
“They can avoid a judicial review if they agree to amend their policy to ensure that it is lawful.
“We cannot encourage our members to apply for licences where we believe the policy to be unlawful.”
Ms Campbell added: “Short-term let licensing remains unfit for purpose and on any reasonable analysis this legislation will have a far greater negative impact on Scottish tourism than any potential positive impact on housing.
“To suggest the scheme addresses basic health and safety concerns is disingenuous, as that legislation already exists.
“Simultaneously it cannot, and will not, ameliorate the housing crisis. To infer otherwise is misleading at best.
“With so many livelihoods at risk, it is little wonder that those in the industry have undertaken legal action when licensing is so onerous, disproportionate and perverse.”
She continued: “Following the recent Court of Session judgment from Lord Braid, which found elements of Edinburgh Council’s licensing plans were unlawful, other local authorities need to take cognisance of this and consider any consequences for their policies.”
“The ASSC contends that Dundee City Council’s policy, amongst others, is legally unsound and open to challenge.”
ASSC calls for urgent pause
The group is now calling for an urgent pause on the scheme of at least 12 months, and says a slew of legal actions are being lined up to challenge the lawfulness of the licences.
Ms Campbell said: “If the scheme is not reversed or materially amended, what we can all be sure of is that livelihoods will be lost, our choice of accommodation will be reduced and the cost of holidays across Scotland will increase.”
Dundee City Council Spokesperson: “We have received a notification of a pre-action of Judicial Review.
“It would not be appropriate to comment further at this stage.”
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