57m economic impact at risk in Edinburgh due to short-term lets regulation
Tuesday, October 22, 2024
A recent report has highlighted the significant economic importance of short-term lets in Edinburgh, which could be severely impacted by further reductions.
Economic Impact of Short-Term Lets in Edinburgh
According to a BiGGAR Economics report commissioned by Justice for Scotland's Self-Catering and STL Solutions, short-term lets contribute £154m GVA (Gross Value Added) to the city's economy, supporting 5,580 jobs.
If there is a mere 0.5% drop in the availability of secondary let properties, it may cause significant economic repercussions, resulting in an estimated loss of £57 million.
Contrasting with Empty Properties
Notably, the data reveals that there is a substantial imbalance between the prevalence of empty homes and short-term lets in Edinburgh, with secondary lets making up less than one percent of all dwellings, whereas empty properties comprise nearly four times as many.
"They are failing to show any common sense in relation to this policy which is threatening to close many schools in the independent sector."
Miles Briggs
As Edinburgh Council considers its licensing policy, a significant study is taking place that coincides with this crucial decision-making period.
Low-Income Households Affected by Interest Rate Rises
Research by Smart Data Foundry has revealed that low-income households in Scotland are particularly vulnerable to rising interest rates, leading to a substantial increase in housing expenses and exacerbating existing affordability issues for an extended period.
Furthermore, the ongoing impact of interest rate rises on low-income mortgage holders in Scotland may worsen existing affordability challenges and restrict discretionary spending power among these households for an extended period following the COVID-19 pandemic.
When formulating policies to regulate short-term lets in Edinburgh, it is essential that policymakers take into account the far-reaching economic consequences for both the city's businesses and its residents.