New licensing scheme for Scottish short-term lets

02.10.2022
Auction House Scotland

A new licensing scheme for short-term let hosts which aims to ensure consistent safety standards while reinforcing the positive reputation of Scottish tourism and hospitality has now come in to force as of 1st October.

The Scottish Government said the licensing scheme was developed in response to concerns raised by residents about the impact of short-term let properties on their local communities. It gives councils flexibility to develop licensing schemes that meet local needs, and sits alongside powers for councils to establish short-term let control areas.

Hosts will be required to meet a set of mandatory conditions which apply across Scotland, plus any additional conditions set by their council.

A short-term let is where a property or part of a property is rented out for a short period of time, such as for a holiday or business trip. This could refer to renting a whole property or just renting a room in someone’s home. It also refers to self-catering accommodation, B&Bs, guest houses, or even just a spare room if this is rented out on a short-term basis.

There are four types of short-term let license:

• 'home sharing' means you rent out all or part of your own home while you’re living there
• 'home letting' means letting all or part of your own home while you’re not there, for example while you're on holiday
• 'secondary letting'?means letting a property where you do not normally live, for example a second home or holiday let
• 'home letting and home sharing' means you let out all or part of your own home both while you are living there and also at times when you're not there

A tool is available on the Scottish Government website which hosts can use to check the type of license they need and how to apply.

Anyone operating as a host before 1st October 2022 has until 1st April 2023 to apply for a licence and can operate until their application has been determined. New hosts must obtain a licence before accepting bookings and welcoming guests to stay.

The City of Edinburgh Council’s new licensing scheme also includes additional controls for short-term lets for properties used as secondary letting within a tenement or shared main door property. The capital’s scheme will allow the authority to restrict tenements and shared door properties being used, and ensure that correct planning permission and safety checks are in place.

The Scottish Government said it has committed to working with local authorities, as well as organisations such as Airbnb, Booking.com and the Association of Scotland’s Self Caterers, to review levels of short-term let activity in hotspot areas next summer. It will monitor the impact of these measures on the wider tourism sector, and assess whether any further measures are required.

Housing secretary Shona Robison said:

“Our new licensing scheme will support responsible operators and give guests the confidence that their short-term let – be it a flat in Edinburgh, a property for a business trip to the Borders, or a cottage in the Highlands – meets the same set of safety standards."

“These new conditions include measures such as displaying an energy performance rating on listings, or securing valid buildings and public liability insurance. We know the vast majority of short-term lets businesses are already following these safety standards as a matter of best practice, and some are already required by existing legislation."

“We know short-term let’s make a positive contribution to Scotland’s tourism industry and local economies, and these measures will allow them to continue doing just that while ensuring this is balanced with the needs of local residents and communities."

“The deadline for applications from existing hosts is 1 April, and I would urge all hosts and operators to contact your local authority as early as possible to learn how to apply.”

Licence fees will vary depending on the local authority, size of property and type of let. Mandatory licence conditions can be found in Schedule 3 of the Licensing Order.


More information about the new licensing requirements and short-term let control areas can be found on the Scottish Government website here: https://www.mygov.scot/short-term-let-licences

Short term let owners should also check the website of their local council for any extra conditions they will be required to meet as part of the new scheme.


Original Sources:
https://www.gov.scot/news/licensing-scheme-opens-for-short-term-lets/

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