Scotland has ushered in a new era for short-term lets, with a licensing law that came into effect on 1 October 2023. This law mandates that anyone offering short-term lets must have a short-term let licence, changing letting in Scotland.
Non-compliance is a criminal offence, punishable by a fine of up to £2,500 and a one-year ban on applying for a short-term let licence.
This law is applicable to all types of short-term let accommodation in Scotland, however, there are certain exceptions, such as when the guest is a member of your immediate family or uses the accommodation as their main home.
The introduction of this licensing scheme has been met with mixed reactions. Some believe it will help regulate the industry and could lead to more homes being freed up for families to live in the long term.
However, others argue that the new legislation could have a detrimental impact on the tourism industry.
Despite the controversy, the Scottish Government believes that the licensing regulations have public support and are the "right thing to do".
The new law aims to address the growth of the short-term let market in hot spots such as Edinburgh. The rise of online marketplaces for short-term holiday lets (e.g. Airbnb) will have likely contributed to this rapid growth.
Does my property need a short-term let licence?
All short-term let properties in Scotland will now need a licence. This includes:
- Shared properties
- B&Bs
- Serviced apartments
- Holiday lets
For those who rent out a room in their home to a lodger, a licence is not required if it’s the lodger’s main residence. To determine if your accommodation requires a licence, it’s best to consult with the local council.
Will I be eligible for a short-term let licence?
To be eligible for a licence, you must meet certain conditions. These include:
- Adhering to the Repairing Standard for houses and flats
- Having a valid EPC dated within the last 10 years
- Ensuring that all furnishings meet the Furniture and Furnishings (Fire Safety) Regulations 1988
- And more.
The cost of the licence, which includes an application fee, is determined by your local council and may vary depending on the size and type of let.
How do I apply for a short-term let licence?
If you were already hosting before the law came into effect, you should have applied for a licence before 1 October 2023. While your application is being processed, you can continue to let for up to 12 months.
For new hosts, a licence must be obtained before offering lets. The council has a 9-month window to process your application. If they fail to do so, you will automatically receive a licence valid for up to a year.
If you are unsure if you will need a short-term let licence you can check with the Scottish government short-term let licence checker here.
As the new era of short-term lets in Scotland unfolds, it remains to be seen how the licensing law will impact the industry and the communities it serves. It is clear, however, that the landscape of short-term lets in Scotland has changed.
If you’re thinking about selling or letting your property, contact your local branch today and talk to an expert advisor.
Your Move E-Marketing Executive
