Short Term Lets Licensing Scheme Part 2 - Supplementary Guidance for Licensing Authorities, Letting Agencies and Booking Platforms

2. Licence types and policy

(a) Four types of licence

2.1. Licensing authorities can grant one of four types of licence for short-term let accommodation. The licence may be for one of the following:

a) secondary letting

b) home letting

c) home sharing

d) home letting and home sharing

2.2. Home sharing and home letting concern the use of the host or operator’s only or principal home whereas secondary letting makes use of a separate premises.

(b) General policies

2.3. Licensing authorities must develop and maintain a policy on temporary exemptions as required by the Licensing Order. Licensing authorities are also encouraged to develop and maintain policies on:

• provisional licences
• licence duration and renewal
• temporary licences
• additional conditions
• compliance and enforcement

2.4. When considering a short-term let licence application where there are multiple accommodations on a single premises licensing authorities may grant a licence in respect of all or some of that accommodation.

(c) Licence duration and renewal policy

2.5 Licensing authorities may decide to grant a licence for a period of up to three years initially, after which it needs to be renewed. Licensing authorities may grant licences for different time periods to different applicants and/or for different types of short-term let licence. Licensing authorities are expected to provide clear and transparent criteria for doing so.

2.6. Licensing authorities must specify the duration and expiry date of each licence on the licence itself. The duration applies from the date on which the licence is granted / or the licensing authority specifies that it will come into force. Where an application is made to renew a licence, the licence will continue to have effect until such a time as a decision is made on the renewal.

2.7. The Licensing Order allows licensing authorities to renew licences for such periods as they see fit (there is no time limit)^[11]. However, licensing authorities must set out the circumstances in which they would use the power to set a licence period in excess of three years. Licensing authorities are encouraged to renew licences for a period of three years, unless they have good reasons to do otherwise.

2.8. The Scottish Government encourages licensing authorities to consider how they will ensure compliance with licence conditions for the duration of licences. This might include whether and how often they would want to see certain documentation or make visits during the licence period. This need not be a blanket approach, as the need to visit a premises during the licence period would depend on various factors.

(d) Temporary licences policy

2.9. Licensing authorities may decide to grant temporary licences. The Scottish Government encourages licensing authorities to develop and publish a policy setting out:

• the licensing authority’s criteria for issuing temporary licences
• the fees payable
• any additional conditions which apply (in addition to the mandatory conditions which apply to all licences, including temporary licences)

2.10. It is desirable for licensing authorities to clearly state if there is an application form specifically to apply for temporary licences (and or exemptions).

2.11. Licensing authorities must consult the Chief Constable and Scottish Fire and Rescue Service in respect of an application for a temporary licence.

2.12. A temporary licence may be granted for a duration of up to six weeks, or longer if the host or operator has also made an application for a full licence. Please note that in applying for a temporary licence, hosts and operators must still comply with all the mandatory conditions. If they have applied for a licence, their temporary licence will last until their licence application is finally determined (this includes an appeal if one has been lodged within 28 days of the decision).

2.13. The issuing of a temporary licence to a host or operator who is also making a full licence application does not extend the time for the licensing authority to make a decision on the full licence application. This remains up to 9 months for new hosts.

2.14. Licensing authorities should issue a licence number to accompany a temporary licence.

(e) Temporary exemptions policy

2.15. In order to obtain a temporary exemption from the requirement to have a licence, hosts and operators must apply for a temporary exemption, where this is offered by a licensing authority. Licensing authorities may grant a maximum of three temporary exemptions to the requirement to have a licence in each calendar year, which must not exceed a combined total of six weeks. The six week limit is a maximum, and not a default.

2.16. Licensing authorities must publish a temporary exemptions policy statement on their website and keep it under review. As a minimum it must review its policy on or before 1 October every three years from 1 October 2022.

2.17. Licensing authorities must consult with such persons as they consider appropriate in preparing and reviewing their temporary exemptions policy statement. Their temporary exemptions policy statement must include information regarding:

• the fees chargeable for a temporary exemption application
• the time period within which the licensing authority will finally aim to determine the application.

2.18. Licensing authorities may choose to also attach conditions to an exemption. The Scottish Government therefore encourages licensing authorities’ policy statements to include:

a) the likely conditions attached to an exemption

b) the grounds for granting or refusing an application for an exemption

c) information about how a decision can be appealed

2.19. Licensing authorities can check and enforce any conditions that are attached to a temporary exemption. Licensing authorities have the right to visit premises and should develop a risk-based approach to prioritising any such visits. Licensing authorities can choose to, but do not need to, inspect every premises and are not liable for any failures of the host or operator.

2.20. Licensing authorities have the power to decide whether to consult the Chief Constable and the Scottish Fire and Rescue Service in respect of applications for temporary exemptions.

2.21. Licensing authorities can grant or refuse an application for a temporary exemption. If they grant a temporary exemption, they should provide the host or operator with a temporary exemption number (like a licence number).

2.22. Where a licensing authority chooses not to use their powers to grant any exemptions, they can comply with this duty by publishing a statement on their website to the effect that applications for exemptions will not be granted under any circumstances.

Festivals and major events

2.23. Temporary exemption powers may be used by licensing authorities as a tool to support demand for accommodation during major events.

2.24. In setting temporary exemption policies to support major events, licensing authorities are encouraged to be mindful of:

• the likely demand for accommodation due to the event
• the type of accommodation likely to meet demand (e.g. people letting out spare rooms or their primary homes)
• the balance when setting the application process, compliance requirements and/or fee level and the impact of these with meeting demand, and subsequent economic impact / viability of future events

Interaction with planning policy

2.25. Planning policies still apply during festivals and major events and may apply to temporary use of accommodation as a short-term let. Scottish Ministers are able to make development orders under section 30 of the Town and Country Planning (Scotland) Act 1997, granting planning permission for development (or development of any class) specified in the order. The use of such orders may be appropriate as a way of granting planning permission for certain changes of use to short-term letting during very large, one-off events such as the Commonwealth Games, Olympics or international summits.