Short Term Lets – the New Regime

With effect from 1 Oct 2022, the law surrounding short term lets in Scotland is changing. As from that date, subject to limited exceptions, all property let out as short term accommodation requires to be licensed by the local authority in whose area it is located.

This new regime has been welcomed by community groups, particularly in areas where second homes cause a shortage of housing for local people or where permanent residents are troubled by anti-social or rowdy behaviour from those visiting on a temporary basis. However, criticisms have been raised by those involved in providing self catering holiday lets as increasing their costs and the administrative burden, at a time when costs for everyone are on the increase.

What are the new rules?

Essentially, all short-term accommodation let for commercial gain requires to be licensed, regardless of its nature. Often the property may be a cottage or an apartment, but it could just as easily be a treehouse, a boat or even a castle. Importantly, a shared home, or rooms within a home are caught by the new regime. To that end, four different types of short term let licence have been introduced.

There are limited exceptions for aparthotels and bothies, for accommodation already covered by a caravan site licence and for accommodation mentioned in the operating plan of a premises licensed under the Licensing (Scotland) Act 2005. No licence is required for a private residential tenancy, a social housing tenancy or if accommodation is provided under an agricultural or crofting tenancy.

What are the deadlines?

Anyone already providing short-term lets prior to 1^st October 2022, can continue to do so, so long as they apply for a licence on or before 30 September 2023. The local authority may ask for proof that a particular property was being used for short-term lets prior to 1^st October 2022. For pre-existing short-term lets, local authorities have a year within which to determine a licence application.

However, anyone who wishes to start letting a property for short term lets on or after 1^st October 2022 is prohibited from doing so until the property is licensed. This could cause a significant delay in new properties being brought on to the short-term letting market as local authorities have up to 9 months to determine an application for a new property. In that period, they simply cannot operate. Further operating a short term let without a licence is a criminal offence and could lead to a fine of up to £2,500.

Do Short-Term Lets have to meet a minimum standard?

In short, yes. The law now provides that short-term let accommodation cannot be licensed unless it meets certain safety conditions. These are also known as “Mandatory Conditions” and apply across Scotland.

These Mandatory Conditions include the need for:

• • The property to meet the statutory Repairing Standard for houses and flats;
  • An Energy Performance Certificate.
  • Conditions to be met in relation to fire safety;
  • A Gas Safety Certificate;
  • Electrical safety reports;
  • Any private water supply to meet certain quality standards;
  • Buildings and public liability insurance; and
  • Details regarding the maximum number of guests permitted in the accommodation.

In addition, local authorities can set their own conditions which apply automatically to any short term lets within their area. Such additional local conditions could include steps which the owner requires to take to avoid anti-social behaviour on the part of guests, arrangements for the recycling of waste or impose that carpets be laid in bedrooms, living rooms and hallways within the property.

How do I apply for a short-term let licence?

Applications are made to the local authority in whose area the property is located. Licences will last between 1 and 3 years, depending on the type of short-term let licence being applied for. Each local authority is also responsible for setting its own fees for licence applications and these may vary depending upon the type of licence sought and the size of the property.

All applications require to be accompanied but the documentation narrated in the Mandatory Conditions, and some local authorities will also seek floor plans of the accommodation proposed to be licensed.

An applicant will need to disclose any other short term let licences which they hold, and also whether they hold any HMO licences. Details of an individual to be named as being responsible for the premises on a day to day basis also needs to be provided.

Criminal convictions of any individual linked to the property as applicant, manager or director/partner of a limited company or partnership which owns the property also need to be disclosed.

The Applicant will also require to display a site notice at or near the property for 21 days in order to notify members of the public of the making of the application, and of the time limits and arrangements for making an objection, if they wish to do so.

Upon the expiry of the 21 day notice period, the local authority will thereafter consider the Application and any objections or representations made, and will decide whether to grant the application or not. As noted above, the local authority either has up to 9 months or 1 year to determine the application from the date upon when it is made. 

Each local authority area will have its own policy governing the grant of short-term let licences. These are available online and every applicant should familiarise themselves with that policy prior to making a licence application, especially if their application is likely to be controversial.

Additionally, every local authority area also now as the power to require planning permission to be granted for short-term lets in certain areas. So far the only such Planning Control Area in Scotland is the entire City of Edinburgh Council area, although similar restrictions are anticipated in Badenoch and Strathspey in the Highlands.  It is envisaged that these controls may become more common particularly in rural locations where there is a shortage of good quality affordable permanent housing due to the proliferation of second homes in a particular area.

Can we help?

Although delayed, this new regulatory regime will soon be in place for all short-term letting accommodation. Navigating the application process may be tricky for individuals and businesses who have not previously faced such an administrative burden. 

It is also considered likely that local authorities will face a tsunami of licence applications the closer it gets to the September 2023 deadline for existing short-term letting applications. Murray Beith Murray’s view is that if the need for short-term letting licences is something which your business is likely to require, the sooner this is done the better.

Our team is experienced in local authority licensing matters and will be delighted to assist you in obtaining any licence you require to allow your business to continue to operate lawfully. For a no obligation initial discussion, please contact Susan Leslie on 0131 225 1200 or email This email address is being protected from spambots. You need JavaScript enabled to view it..