Short term lets - licensing scheme part 1: guidance for hosts and operators

1. Introduction

1.1. The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022^[1] (referred to in this guidance as the Licensing Order) was passed by the Scottish Parliament on 19 January 2022 and came into force on 1 March 2022. Amendment Orders to the Licensing Order were made in 2023^[2] and 2024^[3].

1.2. This guidance is intended for hosts and operators of short-term lets in Scotland to explain their responsibilities to comply with this legislation. Hosts and operators may be individuals or organisations such as partnerships, charities, trusts or companies who provide short-term let premises. Premises refer to any accommodation that falls within scope of the licensing regime. More information can be found in Annex A.

1.3. There is also supplementary guidance for licensing authorities^[4] (about establishing and operating licensing schemes for short-term lets), which you can refer to for more detailed information.

1.4. Separate planning guidance^[5] has been produced for hosts and operators. It is your responsibility to ensure that you comply with any relevant planning requirements. Changing the use of a dwellinghouse or other building to a short-term let premises may constitute a ‘material change of use’ requiring planning permission.

1.5. This guidance is non-statutory and should not be interpreted as offering definitive legal advice. Where there is any confusion, the wording of the legislation takes precedence. If in doubt, you should seek your own legal advice.

1.6. On 8 June 2023 Lord Braid set out his decision on the Judicial Review against the City of Edinburgh’s licensing policy^[6]. The Council has subsequently revised its policy. The ruling was purely in relation to the City of Edinburgh Council’s local licensing policy and not the wider licensing regime. It remains the Scottish Government’s view that licensing of short-term lets can be operated effectively by councils so as to respect the rights of hosts and guests in short-term let accommodation, and is appropriate for the whole of Scotland.

1 (a) Purpose of guidance

1.7. This guidance will help you understand:

• whether your accommodation falls within scope of the legislation (see Annex A)
• what you need to do to apply for a licence
• what you need to do to comply with the requirements of the licensing scheme and relevant regulations
• your responsibility to comply with the conditions set out in your licence
• how to renew your licence

1.8. This guidance is intended for hosts and operators who have established their accommodation and premises is within scope of licensing. It is important to note that premises can be advertised without a licence but no bookings can be taken or guests received until a licence is issued. Operating without a licence or breaching licence conditions could result in a fine and a criminal record.

1.9. Words are explained in the context of this document as they first appear and a glossary of terms is provided at the end of this guidance.

(b) Purpose of the licensing scheme

1.10. The Scottish Government has put in place this licensing scheme to ensure basic safety standards are in place across all short-term lets operating in Scotland, while also providing discretionary powers to licensing authorities to address the needs and concerns of local communities.

1.11. The aims of the licensing scheme are:

• to ensure all short-term lets are safe
• to facilitate licensing authorities in knowing and understanding what is happening in their area
• to assist with effectively handling complaints and address issues faced by neighbours and residents

(c) What the licensing scheme is and where it applies

1.12. The licensing scheme applies to the whole of Scotland and is implemented by licensing authorities. This is the local authority in whose area your premises are located.

1.13. By law every short-term let in Scotland must now comply with mandatory licensing conditions. Licensing authorities can also set additional conditions to address local circumstances or concerns.

(d) How licensing works

1.14. You will need a separate licence for each short-term let premises. Further information about how this works for different types of premises is at paragraph 3.3.

1.15. Your licence will specify the type of short-term let premises it is granted for:

• home sharing
• home letting
• home sharing and home letting
• secondary letting

(e) Temporary exemptions

1.16. Licensing authorities have published temporary exemptions policy statements on their websites, stating whether they offer temporary exemptions or not. If your licensing authority has decided to grant temporary exemptions to the requirement to have a licence^[7], you are able to apply for a maximum of three exemptions (not exceeding a combined total of six weeks in a calendar year). You will need to apply to the licensing authority where your premises are located for a temporary exemption.

1.17. There are some important differences between applying for, and operating with, a temporary exemption and having a licence. Your licensing authority might:

• ask for the application to be made on a different (shorter) form
• charge a different (lower) fee
• ask for less information than on a licence application
• not apply some of the mandatory and/ or additional conditions

1.18. If they grant your application, you will be given a temporary exemption number (like a licence number).

(f) Temporary licences

1.19. Licensing authorities can decide whether to issue temporary licences^[8] in their area. If the licensing authority where your premises are located is willing to accept applications and grants a temporary licence, it can last for up to six weeks. If you have also made an application for a full licence at the same time, your temporary licence can be for longer than six weeks and last until your full licence application is determined. Please note that in applying for a temporary licence, hosts and operators must still comply with all the mandatory conditions.

1.20. Your licensing authority website will explain whether and how your licensing authority issues temporary licences, including how long it takes to issue them.

(g) Development of the licensing scheme and guidance

1.21. The Scottish Government originally published guidance for hosts in March 2022, which was produced by the Scottish Government with input from a stakeholder working group^[9]. This latest version of the guidance has been revised taking on board feedback from Visit Scotland’s Short-Term Let Licensing Expert Guidance Group, comprising representation from the short-term let sector and local authority licensing, legal and planning teams. You can find out more about how the licensing scheme was developed on the regulation information webpage on the Scottish Government website^[10].

(h) Updates

1.22. This updated version of the guidance relates to the Licensing Order approved by the Scottish Parliament on 19 January 2022, and subsequently amended in March 2023^[11] and 2024^[12]. It will be kept under review and updated as required.

1.23. The latest version will always be available at the short-term lets regulation information webpage on the Scottish Government website^[13].