The Civic Government (Scotland) Act 1982 (Licensing of Short-term lets) (Amendment) Order 2024 will make a range of updates to the existing licensing scheme if passed by the Scottish Parliament.
The main updates to the legislation are as follows:
1. Temporary Exemptions Cap
The 2024 Order will place a cap on the temporary exemptions that can be sought from obtaining a short-term lets licence. Hosts may only apply for three periods of exemption per calendar year, with the total exemption period not exceeding six weeks. For more on temporary exemptions under the existing short-term let scheme, please see our article here.
2. Licence Transfers
Short-term let licence holders will be able to transfer their licence to third parties via an application to the licensing authority (at present, if a property is sold, the purchaser would be required to submit an application for a new licence). This will allow hosts to market properties as short-term lets and ensure smooth transitions where the property is conveyed to others.
3. Provisional Licences
Those building accommodation intended for short-term lets can apply for provisional short-term let licences at the construction stage. Once the building is completed, the provision licence will go through a streamlined confirmation process. This will allow greater regulatory planning where the purpose of the new build is identified in advance.
4. Additional Display Requirements within Short-Term Let Premises
Guests must now be provided with instructions regarding carbon monoxide alarms and mobile gas cabinet heaters where appropriate. This supplements information regarding fire, gas and electrical safety which must already be displayed under the existing legislation and forms part of the mandatory conditions. For more information about mandatory conditions under the short-term lets legislation click here.
Technical Updates
The 2024 Order will also introduce a range of technical updates to the legislation:
- Guest rooms in residential accommodation linked to the provision of personal and healthcare services will now be excluded from the short-term lets regime where the guest is using the room to visit residents. This will exclude guest rooms in hospitals, nursing homes and sheltered housing.
- Licenses for multiple accommodation may be granted in respect of all or some of the premises where there are multiple accommodations on a single premise. This is a change from the previous regime, where authorities would need to refuse an application in its entirety.
- Foster care Arrangements will be excluded from the short-term lets regime.
- “Commercial Consideration” will have its definition amended so that it no longer includes the provision of a service.
The Regulations have been laid in Parliament as of May 2024 and are likely to be passed prior to Parliament’s Summer Recess. If approved by Parliament, the Regulations will come into force immediately and will impact existing as well as new short-term let operators.
Our licensing team, led by Partner and Solicitor Advocate Kevin Clancy, has been advising clients in Edinburgh and throughout Scotland in respect of their applications for short-term lets licences. If you wish to discuss how these new regulations will affect you, please get in touch with our specialist licensing team, or email licensing@shepwedd.com, who will be more than happy to assist you.
This article was Co-authored by Trainee Killian Dockrell.