Short-term lets regulation in Scotland explained

What is the short-term lets licensing scheme?

The short-term lets licensing scheme is required for all short-term accommodation in Scotland, including holiday cottages, B&Bs, guest houses, rooms within homes, and alternative accommodations like pods and yurts. A licence is necessary regardless of the duration of the let, whether it's for one night or several months.

To operate a short-term let in Scotland, you must apply for a licence from your local council. It’s important to ensure that your application includes all the necessary information to avoid it being declined.

What are the types of short-term licence?

• Home sharing: Renting out all or part of your home while you continue to live there.
• Home letting: Renting out all or part of your home while you're not living there, such as when you're on holiday. This also includes "home swapping," where you exchange your home with someone else for business purposes; in such cases, a short-term let licence is required.
• Secondary letting: Renting out a property where you don’t normally live, such as a second home or holiday property.
• Home letting and home sharing: Letting out all or part of your home both when you are living there and when you are not.

What types of accommodation needing a short-term let licence?

Accommodation types requiring a short-term licence include various types such as B&Bs, guesthouses, cabins, cottages, and lighthouses. These also extend to more unique options like boats (not used for transport), boathouses, treehouses, yurts, and shepherd huts.

Other types include holiday lets, serviced apartments (with up to four units), chalets, and exclusive-use venues without a licence to sell alcohol. Additionally, farmhouses, lodges, glamping pods, caravans without a caravan site licence, and shared homes or rooms also fall under this category.

What are the legal requirements for a short-term let licence?

The law requires that short-term rental accommodations meet specific conditions in order to obtain a license. These conditions, referred to as 'mandatory conditions,' are in place to ensure the safety of the accommodation.

To meet these specific mandatory conditions, the accommodation must:

• Meet the requirements of the Repairing Standard.
• Hold a valid Energy Performance Certificate (EPC).
• Meet fire safety requirements.
• Hold a valid gas safety certificate dated within the last 12 months.
• Arrange for a Electrical Installation Condition report to be carried out at least every 5 years.
• Arrange a Portable Appliance Testing Report.
• Meet certain conditions if the accommodation has a private water supply.
• Carry out a Legionella risk assessment.
• Have valid buildings insurance.
• Have valid public liability insurance.

New hosts and operators

If you were not using your premises to provide short-term lets before 1 October 2022, you cannot take bookings or receive guests until you have a licence.

All hosts and operators must have a licence by 1 January 2025.

What are the Planning Control Areas for short-term lets?

Your local council might designate parts or all of their area as a short-term let 'control area.' If this happens, you'll need to get planning permission as part of your license to rent out your entire place.

Councils with Control Areas

So far, two councils have these control areas in place:

• City of Edinburgh Council: The whole council area is a control area.
• Highland Council: The control area covers Badenoch and Strathspey.

Councils without Control Areas

If your place isn't in a control area and you don't already have planning permission, you might still need it to apply for a short-term let license. The licensing authority will let you know within 28 days of your application if your property is in breach of planning rules.

Before applying for a license, you can always check with the local council's planning department to confirm the planning status of your property.

More information about short-term let licences

These regulations aim to balance tourism benefits with the housing needs of locals and community stability. Local authorities have specific rules depending on their region, so it’s important for operators to check with their council for any additional conditions.

For more information on short-term lets regulation, visit the Scottish Government website.

ESPC Lettings

If you’re interested in entering the buy-to-let market or are a landlord looking for advice, a new letting agent or a full property management service, ESPC Lettings can help. As a letting agent based in Edinburgh, we can assist with all stages of renting out a home, from finding the right property to sourcing tenants to property maintenance.

Get in touch with the team today on landlord@espc.com or 0131 253 2847.