THE SNP have withdrawn plans to introduce licences for AirBnB-style short-term lets, but insisted that the legislation will be reintroduced in the summer.

The Government, though accused of a “screeching U-turn” by opposition MSPs, insisted that the timetable of the plan has not changed as a result of the withdrawal.

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

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

After the vote was twice delayed amid vocal opposition from some tourism and hospitality leaders, the Scottish Government has now confirmed that it has been withdrawn altogether.

However, Housing Minister Kevin Stewart said he wanted “to emphasise that our proposals and overall timetable remain the same”.

He went on: “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therefore, subject to the outcome of the election, is to re-lay this legislation in June alongside the published draft guidance.

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“If it is passed, local authorities will still have until April 1, 2022 to establish a scheme tailored to their local needs and existing hosts will have until April 1, 2023 to apply.”

A working group has been set up to help develop that new draft guidance and will meet today for the first time.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

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.

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been raised, so have therefore decided to withdraw this legislation so that it can be reconsidered in parallel with draft guidance which will help address those concerns.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

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."

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.

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“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.”