Private landlords in Edinburgh have always had a unique opportunity to capitalise on the vibrant and internationally renowned Edinburgh Festival. With thousands of visitors descending upon the city each year, and rental demand in the city reaching a peak, landlords have historically made the most of this exciting period.
However the rent freeze and evictions bans that were introduced by the Scottish Government last year to protect tenants throughout the cost of living crisis have led to challenging times for landlords. The recent news of the rental cap remaining in force until next March 2024 has perhaps exacerbated this.
Yet here was some good news for private landlords in the holiday homes market earlier this month, with positive changes to the landscape of short-term lets in Edinburgh.
Four accommodation providers who lodged a judicial review opposing a presumption against allowing entire flats within Edinburgh’s tenements being used as holiday lets have been successful. The policy stated that “secondary letting in tenement or shared main door accommodation is considered as unsuitable” and the burden would be on the applicant to demonstrate why they should be exempt from the rule. However it was found that the council’s policy did not stand up in common law, in respect of the rebuttable presumption, the lack of provision for temporary licences and the requirement to supply floor coverings.
The decision will be a boost for the short stay holiday home sector and will give confidence back to our private landlord investor clients to invest in this sector of the property market. There may however be disappointment for some purchasers currently in the process of buying as landlords currently selling may now opt to keep their flats after all.