
April 15, 2025
The introduction of the short-term let legislation made a significant change as to how short-term lets operate in Scotland.
Hosts are now obligated to have a licence to operate and must abide to the mandatory conditions imposed by the local authorities. The legislation ensures the safety of the guests, and also protects the owners against various issues. There are different licences that the hosts can apply for such as a full licence, a temporary licence or a temporary exemption.
A short-term let is defined in the Licensing Act, under Article 3 of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 as the use of residential accommodation provided by the host in the course of business to a guest, where:
Briefly, there are four types of short-term lets:
Anyone who wishes to offer accommodation as a short-term let must get a licence from the relevant local authority, unless the accommodation is excluded by law. New hosts/operators need a licence before they can start operating. Existing hosts can advertise but they cannot take bookings or any deposits. It is important to note that anyone who might operate without having a licence could be committing an offence and could be fined by up to £2,500.
Hosts can apply for a full licence and local authorities have around nine months to decide on the application. However, hosts might consider applying for a temporary licence at the same time as the full licence. This will ensure that your temporary licence remains valid until the full licence is granted.
A temporary licence requires the host to apply in the same way as the full licence and it needs to be granted by the relevant local authority. It allows you to operate for a period of up to six weeks and a temporary licence number is given to you once the temporary licence is granted. It’s important to note that if you have applied for a full and temporary licence at the same time, then your temporary will be valid until the time your full licence is granted. It is good practice for hosts who wish to continue to operate beyond the six weeks to make both applications simultaneously.
Local authorities have a discretion as to the granting of the licence application and it is necessary to comply with all mandatory conditions.
A temporary exemption gives the ability to take bookings and accept guests in your property without having a licence in place. This can be during special events, i.e. festival periods or major sporting events. Local authorities may grant a temporary exemption for a fixed period of time which allows to operate without having a licence. However, it should be noted that temporary exemptions are not automatically granted, and local authorities can attach conditions to award the exemption. Additionally, hosts need to ensure that all the basic standards are met, that they are fit and proper to hold a licence and a fee is paid to the relevant local authority.
Hosts need to submit the applications along with the relevant certificates/documents. The same certificates are required to be submitted for all licence applications. Hosts must ensure to check with their local authority if anything additional is required to be submitted with the application.
The standard certificates/ documents are:
The standard mandatory conditions apply to all licences, whether full, temporary or exemptions. The applicant needs to be aware of the all the mandatory conditions and regularly check the relevant local authority’s website to keep up to date with any changes that might be introduced. Importantly, local authorities can impose additional conditions when granting the licence.
Your exemption is not guaranteed but even when this exemption is granted, it is temporary, and it does not affect the way rules apply. The short-term accommodations still must adhere to the standard regulations.
If you are thinking of applying for a short-term let licence or need advice on applying, please contact our Licensing team, or view our services here.
Karen Gatherum Senior Solicitor | ||||
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Karen is a solicitor in our Licensing Team specialising in Liquor and Civic Licensing including Short Term Let Licensing. Karen assists and advises our Licensing clients across the country with all forms of licensing matters.