However, the Scottish Government says it is sticking to its timetable, which gives owners of Airbnb-style properties until April 2023 to apply for a licence.
Housing minister Kevin Stewart said the legislation creating a licensing scheme for short-term lets would be withdrawn from the current session of the Scottish Parliament and re-introduced in June, pending the result of the election.
He said this would allow draft guidance to be developed to help reassure operators.
While MSPs on the local government committee backed the plans earlier this month, some expressed concern about how the scheme will work in practice.
Some were worried that bed and breakfast properties would be included in the licensing system alongside Airbnb-style self-catering accommodation.
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been raised, so have therefore decided to withdraw this legislation, so that it can be reconsidered in parallel with draft guidance which will help address those concerns.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.
“I want to emphasise that our proposals and overall timetable remain the same.”
Reacting to Mr Stewart’s statement, Conservative MSP 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 Labour MSP 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 on to our hard-pressed councils without providing any new support.
“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.”
Scottish Greens MSP John Finnie said: “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.”
Peter Moss, a founder member of the alliance and a B&B owner in Fort William, had previously said the legislation should at least be delayed until after the election.