# New Government Rules on Renting Will Likely Destroy Scotland's Economic Jewel in the Crown: The International Festival
Key Highlights :
Scotland has long been known for its rich cultural heritage, and the International Festival has been one of its most prized gems. The festival, which takes place annually in the capital city of Edinburgh, brings together people from all over the world to celebrate the arts, music, and culture of Scotland.
However, the Scottish government's new regulations on renting could have a devastating effect on the festival and the Scottish economy as a whole. The new regulations, which came into effect in May of 2023, require anyone wanting to rent out their homes to tourists to obtain a license, regardless of whether they are renting out a spare room or a whole apartment.
This is particularly problematic for Edinburgh, as the majority of the city's housing is made up of tenement buildings, which are unlikely to be approved for rental licenses. This means that many of the people who traditionally rent out their homes to tourists during the festival season will no longer be able to do so.
The result is a shortage of festival accommodation, with rental rates skyrocketing to as much as £34,000 ($42,000) a month for August. This is a huge blow to those who rely on the extra income generated from renting out their homes during the festival season to cover their annual mortgage.
The regulations were allegedly designed to help Scotland's chronic housing shortage, but in reality, they have only served to benefit the well-heeled home owners, who can now rent out their flats and townhouses at higher rates. This has created a two-tier rental system, with the well-off getting the upper hand and those in tenement buildings suffering the consequences.
The only possible good news coming out of this economically insane rule is that the economic hardship will be widespread and likely lead to the ouster of the Scottish National Party along with its self-defeating policies. Until then, it looks like the International Festival will be in for a hard time, with its ticket sales and visitor numbers likely to take a huge hit.
