Short-Term Lets - Frequently Asked Questions

The licensing scheme applies to the whole of Scotland, so hosts who let out their properties on a short-term basis anywhere in the country may need to apply for a licence. Some residential accommodation is specifically excluded (such as hotels, hostels and caravan sites), as are certain types of tenancy arrangements, but most other hosts must apply for a licence.

For the purposes of the licensing scheme, a short-term let is defined as “the use of residential accommodation provided by a host in the course of business to a guest”, where all of the following criteria are met:

• The guest does not use the accommodation as their only or principal home;
• The short-term let is entered into for commercial consideration;
• The guest is not (a) an immediate family member of the host; (b) sharing the accommodation with the host for education purposes, or (c) an owner or part-owner of the accommodation;
• The accommodation is not provided for the principal purpose of facilitating the provision of work or services by the guest to the host (or another member of the host’s household);
• The accommodation is not excluded accommodation; and
• The short-term let does not constitute an excluded tenancy.

It has always been the case that it is the planning authority who determines whether the change of use of a dwellinghouse is a material change of use (i.e. such a significant change in the character of the use that it requires planning permission) on a case-by-case basis. In that sense, the short-term let rules have not changed the general position.

However, in a short-term let control area, any change of use from residential to short-term letting will always require planning permission (or a certificate of lawfulness that confirms the property has been used for short-term letting for more than 10 years). At present, the whole of the City of Edinburgh has been designated a control area (from 5 September 2022) and Highland Council has announced plans for Badenoch and Strathspey to be made a control area. Other local authorities may follow suit.

Within these control areas, if you own a second flat or house that has been made into a short-term let, you must have planning permission or a certificate of lawfulness of use in place for your licence to be granted. Each planning application is considered on a case-by-case basis. The Scottish Government has issued planning guidance as to the material planning considerations that will be taken into account by a planning authority when determining whether or not to grant planning permission. For example:

1. Whether guests have access to communal stairwells and gardens;
2. The arrival and departure times of guests (particularly if these are at unsociable hours);
3. The number of guests staying; and
4. The cumulative impact on public services and the character and amenity of a neighbourhood.

If a licensing authority considers that the use of premises for a short-term let would constitute a breach of planning control then it is entitled to refuse to consider an application for a short-term let licence. It will therefore be necessary for a host to obtain either planning permission or a certificate of lawfulness of use (i.e. a certificate confirming that the premises has been used as a short-term let for in excess of 10 years, and so formal planning permission is not required).

It is a criminal offence to operate a short-term let without a licence where required. It is essential that for all hosts to have a licence in place where required to avoid potential criminal consequences.

You must comply with the mandatory and additional conditions that your local authority attaches to your licence. You are responsible for ensuring that your property complies with these conditions during the course of your licence.

If you do not meet these conditions before applying for your licence your application may be refused. However, even after your licence is granted, you will need to ensure your property is maintained at the required standard and complete certain annual safety checks. You are responsible for ensuring your property complies with the up to date standards, or taking the property out of service until you have repaired it.

Your local authority may visit your property to follow up on complaints and previous visits or as part of a routine pattern of inspection. Although your local authority must give notice ahead of routine visits, it is entitled to make unannounced inspections at any time to ensure you are adhering to your licencing conditions.

If upon inspection your property is in breach of your licence conditions, the local authority can serve an enforcement notice on you. These notices will give you a deadline to bring your property up to the required standard or your licence may be varied, suspended or revoked.

Although this will generally only happen once all other enforcement options have been exhausted, the local authority has the power to suspend or revoke your short-term let licence. These steps may be taken if you have been given time to put things right but have failed to do so or if your guests are at risk of serious harm. Your licence may be suspended while the local authority considers a revocation. If your licence is revoked you will be unable to make a further application in respect of your property for 12 months.

It is important to be aware that you must continue to update the relevant local authority where your circumstances change. If you make physical alterations to your property, increase your number of guests or rooms, or change your property management company you must notify the relevant local authority as soon as possible. In some cases, you may also be required to seek the local authorities’ consent before making the change. You will commit an offence if you fail to notify the local authority or fail to seek their approval where you require it.

A temporary exemption gives you the ability to take bookings and accept guests in your property without having a licence in place. During special events (for example, festivals, major sporting events, etc.), your local authority may grant you a temporary exemption for a fixed period of time which allows you to operate despite not having a licence. 

Local authorities have the flexibility to grant temporary exemptions for a period of up to 6 weeks. However, you can only be granted a temporary exemption once in any 12 month period. 

You must apply to the relevant local authority for a temporary exemption. This process will be slightly different to the licence (or temporary licence) application process and should be shorter and have a lower fee. 

Although you won’t need to provide as much information in an exemption application, you will still be required to comply with those mandatory conditions the local authority has applied in respect of temporary exemptions. These mandatory conditions include your property having planning permission where required, meeting a number of safety standards, and not exceeding a maximum occupancy level. The local authority can check and enforce any conditions attached to your exemption, including by visiting your premises, so it will be important to understand and meet the conditions.