Anyone operating a short-term let before 1 October 2022 must apply for a licence before 1 October 2023. You can continue to receive guests and accept bookings while your application is being determined. If you do not apply, you cannot continue to operate.
The Scottish Government has introduced a licensing regime for short-term lets in Scotland. The scheme requires all local councils to establish a short-term let licensing scheme.
Please note that this web page includes a summary of the law relating to short-term lets. You should take further advice on how the law applies to specific circumstances.
Page last updated: 21 September 2023
If you, as a host, provide residential accommodation to a guest in the course of business, you might operate a short-term let. The new legislation will consider a property a short-term let if the guest does not:
accommodation which can be used as transport, without needing modification
accommodation which is provided by the guest
accommodation which needs a licence for use for hire for overnight stays
residential accommodation where personal care is provided to residents
residential school, college, or training centre
accommodation used as military barracks
custody centre
detention centre
prison
secure hospital
secure local authority accommodation
secure training centre
short-term holding centre
young offenders institution
self-catering accommodation within the grounds of a licenced premises or hotel (Licensing (Scotland) Act 2005). The accommodation needs to be specifically mentioned as part of the operating plan
student accommodation
Those operating short-term lets before 1 October 2022 must apply for a licence before 1 October 2023. You can continue to receive guests and accept bookings while your application is being determined.
However, if you establish any new short-term let accommodations, you must have a licence before taking any bookings.
New hosts starting a short-term let after 1 October 2022 need a licence before they can start operating. You may advertise, but not take any bookings, deposits, or have guests to stay.
This also applies to existing operators who establish new short-term let accommodations.
You'll need to apply for a short-term lets licence through your local council. They have the information and application forms available on their websites.
Before starting your application, it's worth reviewing whether you need planning permission.
It's also good to check whether you adhere to the mandatory conditions set for every short-term let in Scotland. Please review the following steps to see how you can get ready.
There are mandatory conditions that every short-term let in Scotland will need to follow. These relate to the safety of the activity. Licensing councils can also set extra conditions according to local needs and circumstances.
The Scottish Government has provided guidance:
Short-term lets - licensing scheme part 1: guidance for hosts and operators.
Local councils may also choose to designate short-term let Planning Control Areas (PCAs). This means that you need planning permission to let out whole accommodation in these areas. This is in addition to a short-term let licence.
You may wish to contact your local council for advice if you are unsure whether you need planning permission.
Local councils have information and application forms needed to apply for a short-term lets licence on their websites.
Getting your application right first time will help councils in processing it and it may also help you to get a decision quicker. The timescales for determination are dependent on various factors including licensing council workloads.
Your licensing council will set out the detail and format of any documentation that you need for your application on its website.
View the full list of local councils on mygov.scotLocal councils will charge a fee for making a licence application. Fees differ across local councils and for different types of licence, e.g. home sharing, home letting and secondary letting. If you need to apply for planning permission, there will also be a fee for making a planning application.
Councils will generally have 12 months to decide on applications from existing hosts. They have nine months for applications from new hosts. But extensions are possible.
We know there are many questions related to this new legislation. That's why we’ve pulled some of the key questions – and more importantly answers – to make it a little easier for you.
If you, as a host, provide residential accommodation to a guest in the course of business, you might operate a short-term let. The new legislation will consider a property a short-term let if the guest does not:
There are also some other limited exceptions.
Identify whether you provide a short-term let on the Scottish Government website.
Anyone operating a short-term let without a licence could be committing an offence. This is punishable by fine of up to £2,500.
There are transitional rules for existing hosts. These will allow you to continue letting provided you have applied for a licence by 1 October 2023. This also includes advertising, taking bookings and taking deposits.
Those operating short-term lets before 1 October 2022 will be able to continue until the local council makes a decision on the application, provided they apply for a licence before 1 October 2023.
If you are an existing host who applies after 1 October 2023, you will not be able to take further bookings until you receive a licence.
Local councils will generally have 12 months to decide on applications from existing hosts. But you can apply to a court for an extension in limited circumstances.
New hosts starting a short-term let after 1 October 2022 need a licence before they can start operating. You may advertise, but not take any bookings, deposits, or have guests to stay. Local councils will generally have nine months to decide on such applications.
In both cases, failure to make a decision by the local council within the relevant timeframe results in a deemed grant of the application. The resulting licence may be valid for up to three years, which you will have to renew.
If the council refuses or revokes your application, you may have to return all or part of your customer deposits. This will depend on what is in your terms and conditions.
This means using all or part of your own home for short-term lets while you are there.
This means using all or part of your own home for short-term lets while you are absent, for example whilst you are on holiday.
This means the letting of property where you do not normally live, for example a holiday let.
This means you operate short-term lets from your own home. This is both while you are living there but also for periods when you are absent.
The licence holder will be the only person who can deal with the day-to-day running of the property. Agents or day-to-day managers can also be named as holders of the licence.
To get a licence, you must pass a fit and proper test. Your council will take account of different matters. These will generally include:
If you live abroad, your background check (and therefore your application) might take a bit longer to process.
You must file your licence application(s) with your local council in the area where the property stands.
View a full list of councils in Scotland on the Scottish Government website.
You should check with your local council which will have published its local policy. However, in general, a single licence can cover a number of properties on one premises. "Premises" mean both accommodation and land.
Examples:
The council will grant licences for up to three years from the issuing date. Check local arrangements for more information.
Once you've successfully renewed your licence once, it may be valid for a longer period.
Each local council can set their own fees for licensing applications. These are set on a cost recovery basis dependent on a number of factors. E.g. whether the council has chosen to inspect the property in-person as part of the application process.
If you need a short-term let licence, and you fail to apply but continue operating, you could be subject to a fine.
If you do not know whether you require a short-term let licence, please seek legal advice.
Are you an existing operator before 1 October 2022 and have you made your licence application before 1 October 2023? Then you don't need a temporary licence to continue operating.
After 1 October 2022, new hosts and operators will need to have a licence.
Were you not using your premises to provide short-term lets before 1 October 2022? Then you cannot take bookings or receive guests until you have a licence. This applies to each of your premises separately.
If you're a new host, you may consider applying for a temporary licence. You can make a full application for the same premises as the temporary licence. In this case, your temporary licence remains valid until your full licence application is processed.
Please check with your council:
Read more about the cost of a short-term let licence on the Scottish Government website.
Planning legislation allows councils to designate all or part of their area as a short-term let control area.
In Planning Control Areas (PCAs), short-term lets of a whole house will require planning permission of their licence.
Where a PCA exists, property owners will need to obtain planning permission or a certificate of lawfulness in addition to a licence.
Does your short-term let breach planning controls? Then the local council can issue a "preliminary refusal" of the licence application. Your council will give you the opportunity to resolve the planning aspects.
Within a control area a mandatory licence condition relating to planning permission applies from the point of designation. This licensing condition is only relevant if:
The entire City of Edinburgh Council area has been confirmed as a Planning Control Area. View the PCA for Edinburgh (Edinburgh City Council). Ministers have also granted permission to Highland Council for Badenoch and Strathspey to become a PCA. A consultation is taking place to help shape the planning policies that will deal with applications in the Planning Control Area.
In a control area, the let of an entire premises that is not your principal home (secondary letting) will always need planning permission as well as a licence. Outwith, you may need planning permission. You should check with your council.
Within a control area, before you apply for a licence, you must either:
Within a control area a mandatory licence condition relating to planning should only apply from the date the designation of 'Planning Control Area' came into effect.
You may still need planning permission. Please check with your council.
Yes, if you are non-compliant or if there are other legal reasons for your licence to be refused.
You can submit your application either online or on paper in Scotland, although paper is being phased out.
Decision times can vary between councils. You should check with your own local council as they'll be able to advise how long it might take. It usually takes some considerable time to reach a decision. Think weeks or even months.
Please remember, it's very likely that there'll be an upsurge in applications. So it's best to submit an application as early as possible.
There will also be an extra cost for getting plans and elevations drawn up by an architect, although there are some online alternatives.
You should be able to continue operating until your licence application is determined as long as you:
This includes:
If there was an issue with your licence, you'll likely have to refund guests their deposits depending on what's in your terms and conditions.
No. If you're a new operator, you may advertise but not take bookings, collect deposits, or welcome guests.
You may likely have to return all or part of your deposits from guests depending on what's in your terms and conditions.
Your terms and conditions should provide for situations arising where there is an issue with your licence. They should also deal with all other aspects of your business. You may want to address deposits, refunds and administration fees in these terms and conditions.
You cannot currently transfer a licence, however your council may be able to advise you on steps to take to give a prospective buyer assurance. A licence is specific to both those named on an application form, and the premises. A new operator will have to apply for a new licence while the old licence continues to run.
Depending on your situation, you might also need to take the following into account:
You'll need to make a new licence application, regardless of the policies in play when the old licence was issued. The council will consider your application on its merits in accordance with their policies at that time. But there should be no presumption that they will automatically grant you your licence after application.
If a licence holder dies, the executor holds the licence for a (possibly extendable) three-month period.
If a licence holder is no longer holding the licence, there is a six-week period for the remaining ones to apply for a new licence. If this is not done within the six-week period, the licence would no longer be valid.
The council might want to support you to continue to provide short-term lets without significant delay. If so, they could grant you a temporary licence pending consideration of your licence application.
There may be occasions when prospective buyers of short-term let businesses are asked by their lenders to obtain assurance about being able to get a short-term let licence in order to complete their purchase.
Licensing authorities have powers to process variation applications and they may choose to do so where the short-term let host is a corporate entity, and the incoming purchaser is added as a director.
Ensure that your new certification is in place before the previous ones expires. If there are gaps in the coverage of certification, you may have to explain why. Saying that you could not get contractors may not be deemed a reasonable excuse.
Do your certificates not run concurrently? Then you may have to appear at a committee, and this may result in your licence being renewed for a shorter period.
It will be up to the council to determine when objections or complaints are relevant. If so, the applicant and objector will have the opportunity to address the council in a hearing. You can raise any points of competency, evidence, and information at this stage.
There are also appeals processes, which vary depending on the decision you want to appeal. If you are at the stage that you intend to lodge an appeal, you should take legal advice.
Then your property counts as an HMO and will need an HMO licence. If you also offer short-term lets in addition to this style of rental, you'll also require a short-term let licence. If, however, you operate for less than six weeks, you may be able to apply for a temporary exemption if your council offers this.
Check out a template for licence notice on the Scottish Government website.
Local councils will set out the evidence they need to treat you as an existing host for the purpose of the legislation. This may mean providing evidence of bookings and payments for the guests you received during the period preceding 1 October 2022.
We're working with the associations who represent those affected by this legislation. In doing so, we formed an Industry Advisory Group.
Committed to working together, we've set out to ensure businesses have the most up-to-date information. This is in collaboration with the Scottish Government.
We want to help you through the process of applying for a short-term let licence or planning permission.
We’ll be updating this page so do check back.
