AirBnb owners are leaving the market in Scotland and choosing long term lettings instead, following changes to the regulations in Scotland, according to property firm DJ Alexander.

The largest lettings and estate agency in Scotland said that it has been approached by holiday lettings landlords wanting to shift to long term residential letting because of costs and uncertainty over the introduction of more stringent regulations when operating through AirBnb and other short-term letting sites.

The new rules, which take effect from this month for new properties entering the market and from April 2023 for existing lets, require landlords to apply for planning permission to operate a holiday let. This permission must be sought despite there being no guarantee of acceptance so substantial fees and legal costs are incurred without any certainty that the property will be accepted.

David Alexander, chief executive at DJ Alexander, said: “We are seeing many landlords moving out of the holiday letting sector simply because of the uncertainty of the new regulations and the costs of implementing the rules. However, this is welcome news for the long-term residential sector, which is at breaking point at the moment with demand far outstripping supply.”