Short-term lets regulation in Scotland explained

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In Scotland, the landscape of short-term lets has undergone significant changes due to new regulations aimed at balancing the benefits of tourism with community needs and housing availability. Understanding these regulations is crucial for anyone involved in short-term letting, whether you're a host, operator, or considering entering the market.

Overview of the Short-Term Lets Licensing Scheme

As of October 1, 2022, the Scottish Government implemented a mandatory licensing scheme for all short-term let accommodations. This encompasses a wide range of properties, including holiday cottages, B&Bs, guest houses, rooms within private homes, and unique accommodations like yurts and pods. The requirement for a license applies regardless of the duration of the let, ensuring that all short-term accommodations adhere to consistent safety and quality standards.

Types of Short-Term Let Licenses

The licensing scheme categorizes short-term lets into several types, each with specific definitions:

  • Home Sharing: Renting out a part of your primary residence while you continue to live there.
  • Home Letting: Renting out your entire home while you're absent, such as during holidays.
  • Secondary Letting: Letting a property that is not your primary residence, like a second home or dedicated holiday accommodation.
  • Home Letting and Home Sharing: A combination where you rent out all or part of your home both when you are present and when you are away.

Accommodation Types Requiring a License

A broad spectrum of accommodations falls under the licensing requirement, including:

  • Traditional Lodgings: B&Bs, guesthouses, cabins, cottages, and lighthouses.
  • Unique Accommodations: Boats (stationary), boathouses, treehouses, yurts, and shepherd huts.
  • Modern Options: Holiday lets, serviced apartments (up to four units), and chalets.
  • Others: Farmhouses, lodges, glamping pods, and shared homes or rooms.

Legal Requirements for Obtaining a License

To secure a short-term let license, accommodations must meet several mandatory conditions designed to ensure safety and quality:

  • Repairing Standard Compliance: The property must meet the Repairing Standard for houses and flats, ensuring it is fit for habitation.
  • Energy Performance Certificate (EPC): A valid EPC is required, indicating the property's energy efficiency.
  • Fire Safety Measures: Adequate fire safety provisions, including smoke detectors and fire extinguishers, must be in place.
  • Gas Safety Certificate: A current gas safety certificate, dated within the last 12 months, is mandatory if gas appliances are present.
  • Electrical Safety: An Electrical Installation Condition Report (EICR) must be conducted at least every five years, along with Portable Appliance Testing (PAT) for electrical appliances.
  • Water Safety: If the property has a private water supply, specific conditions must be met, including a Legionella risk assessment.
  • Insurance Coverage: Valid buildings and public liability insurance are required to cover potential risks.

Application Process and Deadlines

Existing hosts (those operating before October 1, 2022) were required to apply for a license by October 1, 2023. These hosts can continue operating while their application is processed. New hosts must obtain a license before commencing any short-term letting activities. Local councils are responsible for processing applications and have up to 12 months to determine the outcome.

Planning Considerations and Control Areas

Certain regions, such as Edinburgh and the Badenoch and Strathspey Ward, have been designated as short-term let control areas. In these zones, additional planning permissions may be required, particularly for secondary letting. Hosts must ensure compliance with both licensing and planning regulations, which may involve applying for change-of-use permissions under local planning laws.

Enforcement and Penalties

Operating a short-term let without the necessary license is a criminal offense in Scotland, subject to fines of up to £50,000. Local authorities are empowered to enforce these regulations, conduct inspections, and address non-compliance to maintain safety and community standards.

These regulations aim to balance the economic benefits of short-term lets with the need for community safety and housing availability. Hosts and operators must stay informed and compliant to avoid penalties and contribute positively to their communities. At ESPC, we have plenty of information on short-term letting and advice on buying or selling property.

More information about short-term let licences

These regulations aim to balance tourism benefits with the housing needs of locals and community stability. Local authorities have specific rules depending on their region, so it’s important for operators to check with their council for any additional conditions.

For more information on short-term lets regulation, visit the Scottish Government website.

ESPC Lettings

If you’re interested in entering the buy-to-let market or are a landlord looking for advice, a new letting agent or a full property management service, ESPC Lettings can help. As a letting agent based in Edinburgh, we can assist with all stages of renting out a home, from finding the right property to sourcing tenants to property maintenance.

Get in touch with the team today on landlord@espc.com or 0131 253 2847.