THE SNP has been forced into a "screeching u-turn" and withdrawn plans to regulate Airbnb-style short-term lets and will instead resubmit the plans alongside guidance after May’s election.

Tourism and hospitality leaders had asked for the plans to be halted amid the Covid-19 crisis, labelling them "not fit for purpose" – while the Scottish Conservatives also called on ministers to scrap the plans.

The proposals would require all short-term let property owners and some B&B operators to obtain a licence or face hefty fines.

The legislation was backed by Holyrood’s Local Government and Communities Committee and was set to be voted on by MSPs.

The Herald revealed that the vote has been delayed twice and now the Scottish Government has confirmed the legislation has been officially withdrawn.

READ MORE: Vote on Airbnb crackdown plan delayed by Scottish Government

Despite the hold-up, Housing Minister Kevin Stewart has insisted that the timetable for the legislation coming into action has not been altered.

A working group has been set up to help develop the new guidance and will meet today for the first time. Ministers say the guidance will help to provide reassurance on the operation of the scheme to operators and hosts in the industry.

Subject to the outcome of May’s Holyrood election, the Scottish Government intends to re-lay the legislation before Parliament in June, accompanied by the draft guidance, to ensure that the timetable on introducing licensing remains the same.

The Government will continue with legislation allowing councils to establish short-term let control areas. This legislation will allow local authorities to implement short-term let control areas to address pressures created by whole property short-term lets, ensuring that homes are used to best effect in their areas.

Ministers will be able to veto any use of the power by councils.

READ MORE: Tourism and business groups call for Airbnb crackdown to be dropped

Mr Stewart said: “Our proposals to licence short-term lets were developed in response to concerns raised by residents in communities across Scotland and members in all parties.

“However, I know concerns have been raised, so have therefore decided to withdraw this legislation so that it can be reconsidered in parallel with draft guidance which will help address those concerns.

“I want the licensing scheme to be as efficient and effective as possible in ensuring the safety of guests and residents, and to provide local authorities with the powers to balance community concerns with wider economic and tourism interests.”

He added: “I want to emphasise that our proposals and overall timetable remain the same. Safety of those using short-term lets is vital and our proposals ensure that all short-term lets across Scotland adhere to a common set of safety standards as well as allowing local authorities to tackle issues such as antisocial behaviour.

“This Government’s intention, therefore, subject to the outcome of the election, is to re-lay this legislation in June alongside the published draft guidance. If it is passed, local authorities will still have until 1 April 2022 to establish a scheme tailored to their local needs and existing hosts will have until 1 April 2023 to apply.”

The CEO of the Association of Scottish Self-Caterers, Fiona Campbell, said: “The Association of Scotland’s Self-Caterers welcomes the withdrawal of the licensing order by the Scottish Government.

"We consistently warned that the proposed legislation was not fit for purpose, would entail unintended consequences for our vital tourism industry and would heap costs on small businesses at a time when they could least afford it.

“The ASSC commits to working constructively with the Scottish Government and other stakeholders through the new working group to ensure that anything that is taken forward in June – whatever the electoral outcome – is measured and proportionate, and also works to support the recovery of Scottish tourism in these challenging times.”

Sarah Boyack has said that the need for regulation of short-term lets is greater than ever, but that a robust and fair system is what is required, not badly drafted, ill-thought out and half-baked legislation that penalises the tourism sector.

Scottish Labour local government spokesperson Sarah Boyack said: “This screeching u-turn is the result of the SNP’s failure to listen to the genuine concerns of the tourism sector and Scotland’s hard-pressed local authorities.

“Scottish Labour supports the regulation of short-term lets, but the SNP’s proposal, as it stood, risked unjustly penalising our tourism sector and foisting greater responsibilities onto our hard-pressed councils without providing any new support."

She added: “We are in the midst of a housing crisis in Scotland, with 32,000 homes lost to short-term lets from 2016-2019 and communities left hollowed out by lack of action. Nonetheless, the SNP’s plans were not fit for purpose. We need an effective licensing scheme that has been developed in partnership with the tourism sector and our councils, that can successfully tackle the damage done by years of de-regulation.

“It’s time for Kevin Stewart to go back to the drawing board and put together a proper plan to regulate short-term lets that does not penalise our tourism sector or put more pressure on our over-burdened councils.”

Scottish Conservative local government spokesperson, Annie Wells, said: “At long last the SNP Government have listened to the lobbying from tourism businesses and the Scottish Conservatives to withdraw these plans.

“However, they have failed to do the right thing and go further by committing that this is the end of the road for these regulations.

“If these regulations are brought back after the election, Scottish Conservative MSPs will stand with the industry and vote to scrap this illogical legislation.”

Scottish Greens MSP John Finnie added: “The Scottish Greens have made the case for the regulation of short term lets for some time and welcome the growing consensus that action needs to be taken to address the out of control growth of Airbnb style holiday rentals.

"The impact of short term lets affects communities throughout the country, both rural and urban, so it is essential that councils are adequately equipped to control where and how these lets operate in a way that suits local circumstances.

“While there is clearly a need for regulation there was a danger that the Scottish Government’s proposal wouldn’t do the job that it was intended to, so I’m hopeful that the decision to withdraw the legislation and reintroduce it alongside updated guidance in the summer will result in a more robust regulatory framework.”