Seòmar agus comataidhean

They should take place as part of that. Again, when I had a discussion with the City of Edinburgh Council, we discussed what period of time we were talking about, and Edinburgh’s own interpretation of the scheme and how that worked.

To go back to the local position as against the national position, Glasgow City Council obviously feels that it is in a particular position. I am happy to discuss that individual position with Glasgow, although it has not been raised with me specifically. I am happy to pick that up.

I will bring in Jessica Niven to see whether she is aware of the point that you make, but it has not been raised with me. Nevertheless, that may be Glasgow’s interpretation. Jessica, do you have anything else to add on that? Are you aware of that point?

That comes back to the financing of some of the schemes. I come from a background of working for the Bank of Scotland for 20 years and I know that, when someone is trying to finance a project, the certainty that a bank has around planning and licensing risks is important in, first, whether the financing is available at all, and, secondly, how that financing is priced. The ability to have a provisional licence gives more security to an applicant and to the bank that the applicant is going to get a licence, which means that the applicant is more likely to get the funding and that the funding will be priced at a less risky point—it might be 4 per cent over base instead of 6 per cent over base.

The provision comes from feedback that we got from applicants who want to come into the sector and have concerns about how they will know that they are doing everything right at any particular stage, so that the application goes through the process and they end up with a full licence. The provisional licence helps with the process. It makes it cheaper and easier for people to get into short-term letting. As I said, the provision is based on feedback that we received, and my banking background enables me to understand where applicants are coming from on that point.

There are a number of points to make in that respect. Again, it comes back to those really important discussions that we have had with SOLAR. There have been lots of discussions with that organisation prior to today; lots of discussions are on-going; and there will be lots of discussions with it beyond this. I will bring in Jess Niven to talk about the operational discussions that have gone on, but I have certainly had meetings with SOLAR on this matter, and if any clarity is required or if any issues arise with regard to outstanding applications, we will obviously continue to work with the local authorities on that. However, we are continuing to have discussions on the matter. Jess, do you want to add anything about the almost day-to-day operational discussions that go on with local authorities?

Thanks, Andy. I suppose that it comes back to local authorities having flexibility on that. I understand why some stakeholders have raised the point, but it is important that local authorities have that flexibility. We have already met the ASSC to speak about those specific points, and Ivan McKee, who is recently in post, and I will meet the ASSC again to discuss this and any other specific issues that it might have.

There are a number of things there, Mr Griffin. One question is whether we decide to go down the legislative route for the other issues that have been raised. Something might require an SSI or guidelines, and we will continue to discuss that. We have brought forward what we have brought forward to try to address all the key issues that were raised when I was in committee and between when we brought the scheme and where we are now.

We will continue to look at the evidence in the figures for short-term lets and the accommodation in the sector. I know that anecdotal statements have been made, but I will continue to engage with the expert group on the evidence that comes through. If I need to, I will introduce legislation or guidelines at a time when I think that it would be relevant to support the sector on that. I have made it clear that I am happy to engage with the committee at any time on what is being brought forward, whether that is through correspondence or whatever.

The approach is very much one of continuing the discussions. The establishment of the expert group indicates that we are really willing to do that. The engagement that I have had will continue, even beyond the transitional phase.

It would be difficult to put a timeline on it as such, but if we collectively feel that we need to introduce amended guidance or legislation, that will be done at the time that I think it would be relevant to do that.

Why we are bringing these things forward now is one of the key questions that have been asked. There are different opinions in the sector about what is important. The STA, as I mentioned, thinks that the measures strike the right balance, but it is an on-going dialogue. I think that they have struck the right balance.

Yes. Pretty early on, we had feedback from the sector about what the transfer scheme would look like. It would have been a relatively straightforward process, but the feedback suggested that we should make it simpler and more flexible, so that if someone wanted to transfer a licence to a family member or anybody else, they could do that. Jess Niven noted that if a licence was being transferred and there were little or no changes, the process should be pretty straightforward. Obviously, if there had been a material change, as with planning, there would need to be an updated description to ensure that the safety of the premises was not affected. Jess, do you want to add anything on that?

I can take that away and follow it up with you later. I know that we have had feedback on the issue. There might be issues around how easy it is to monitor what is happening with a new-build property compared with a building that is undergoing a conversion. Jessica Niven might be able to give you more information.

I apologise for not being in the room. After coughing and spluttering my way through some statements last week, I tested positive for Covid on Thursday, and I have still not recovered. I thank the committee for being so accommodating—it is much appreciated.

I am grateful to have the opportunity to speak to the draft Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Amendment Order 2024. Legislation to establish a licensing scheme for short-term lets was approved by the Parliament in January 2022, and the scheme opened in October 2022. The scheme delivers a set of basic safety standards to protect guests, hosts and communities and guarantee high-quality accommodation across Scotland. Those core principles have underpinned our approach, and we have consulted extensively and worked with a range of stakeholders on the scheme’s early implementation.

When the then Cabinet Secretary for Social Justice, Housing and Local Government appeared before the committee in February 2023, the committee made it clear that the Government should use the available time to respond to concerns that had been expressed about the operation of the licensing scheme. I am therefore pleased to have the opportunity to speak to the draft order, which reflects operational adjustments that have been made to the scheme as a direct result of feedback from a range of stakeholders.

The development of the proposed statutory amendment is by no means the only action that we have been taking to continue to refine and improve the licensing scheme. I know that some groups in the sector have shared with the committee evidence that reflects their perspectives on the scheme, and which encourages us to go further. We will continue to work with and listen to stakeholders. I am pleased to inform the committee that, in addition to the regular engagement that we have, we are formalising an expert group to further refine guidance, taking into account the feedback that has been received since the scheme was launched.

The provisions in the amendment order offer technical clarifications and operational improvements for businesses. In bringing forward the proposed amendments, we are conscious that implementation of the scheme is still in a transitional period, in which thousands of operators have recently taken action to comply with the legislation, and that authorities are still processing applications for existing hosts, so any action must be proceeded with in a measured way. That approach has been endorsed publicly by many in the sector.

I turn to the order itself. We are making it more straightforward for short-term let operators to transfer their businesses to a new operator. That aligns with our commitment in the new deal for business. We are also ensuring that new short-term let enterprises can apply for provisional licences, as we listened to and acted on feedback that indicated that securing lending in industries such as agritourism was challenging.

We have reflected the feedback that we received on the operation of exemptions to short-term let licences by clarifying the periods in which that provision may apply. That will ensure that local authorities can apply flexibilities for key sporting and seasonal events that can heighten demand for accommodation, while still having regard for health and safety.

We are also taking the opportunity to make some minor changes to the provisions relating to guest rooms in certain types of residential accommodation and the provisions that require safety information to be provided to guests. The latter change has been made in response to a fatal accident inquiry into a case that involved short-term accommodation.

The approach that is being taken aligns with our commitment to supporting businesses and with the Verity house agreement. It will ensure that the high-quality accommodation that visitors expect in Scotland is maintained, and it prioritises the importance of doing business. I therefore ask the committee to support the draft order.

I will bring in Jess Niven again on that point. My understanding is that the conditions should stay the same in the transfer process unless any specific issue is raised. There is the element of making sure that, when the application is first dealt with, it reflects everything accurately. As part of the transfer process, the conditions should remain the same unless any specific new information comes to light and there have been specific changes. The important point is that it very much depends on individual circumstances.

I have not been made aware of those things in any correspondence or any discussions that I have had, so I ask Jess Niven to come in on that.

My understanding is that they can take bookings only when the full licence is granted, but I might be wrong. Craig McGuffie can give you more information on that.