Short-term lets

Anyone who operated a short-term let before 1 October 2022 AND has had an application accepted before 1 October 2023, can still accept bookings and guests until an application is determined.

Owners who started operations after 1 October 2022 cannot begin trading until they receive their licence.

If as an existing host, you have failed to apply for a licence before 1 October 2023, you will be unable to accept bookings and guests from 1 October 2023 onwards, until a licence has been granted

Overview

The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 was passed in January 2022 and came into force on 1 March 2022.

The effect of that Order was that from 1 October 2022, the use of accommodation for a short-term let was an activity for which a licence is required under the terms of the 1982 Act. 

In light of the decision of the Scottish Parliament on 1 March 2023, the deadline by which existing hosts and operators must apply for a licence has been extended from 1 April 2023 to 1 October 2023. 

The aims of the licensing scheme are to:

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

Contents


Excluded accommodation and tenancies

The legislation sets out circumstances where a short-term let will not be required.

The list of excluded accommodations and excluded tenancies is as below:

1. Exclusions – Accommodation which is, or is part of:

(a) an aparthotel,

(b) premises in respect of which a premises licence within the meaning of section 17 of the Licensing (Scotland) Act 2005 has effect and where the provision of accommodation is an activity listed in the operating plan as defined in section 20(4) of that Act,

(c) a hotel which has planning permission granted for use as a hotel, 

(d) a hostel,

(e) residential accommodation where personal care is provided to residents,

(f) a hospital or nursing home,

(g) a residential school, college or training centre,

(h) secure residential accommodation (including a prison, young offenders institution, detention centre, secure training centre, custody centre, short-term holding centre, secure hospital, secure local authority accommodation, or accommodation used as military barracks),

(i) a refuge,

(j) student accommodation,

(k) accommodation which otherwise requires a licence for use for hire for overnight stays,

(l) accommodation which is provided by the guest,

(m) accommodation which is capable, without modification, of transporting guests to another location,

(n) a bothy, or

(o) accommodation owned by an employer and provided to an employee in terms of a contract of employment or for the better performance of the employee's duties.

2. Excluded Tenancies  

An excluded tenancy means a tenancy which is, or is part of:  

(a) a protected tenancy (within the meaning of section 1 of the Rent (Scotland) Act 1984

(b) an assured tenancy (within the meaning of section 12 of the Housing (Scotland) Act 1988 “the 1988 Act”)

(c) a short-assured tenancy (within the meaning of section 32 of the 1988 Act),

(d) a tenancy of a croft (within the meaning of section 3 the Crofters (Scotland) Act 1993 Act “the 1993 Act”),

(e) a tenancy of a holding situated outwith the crofting counties (within the meaning of section 61 of the 1993 Act) to which any provisions of the Small Landholders (Scotland) Acts 1886 to 1931) applies,  

(f) a Scottish secure tenancy (within the meaning of section 11 of the Housing (Scotland) Act 2001 “the 2001 Act”)    

(g) a short Scottish secure tenancy (within the meaning of section 34 of the 2001 Act),

(h) a 1991 Act tenancy (within the meaning of section 1(4) of the Agricultural Holdings (Scotland) Act 2003 “the 2003 Act”),

(i) a limited duration tenancy (within the meaning of section 93 of the 2003 Act),    

(j) a modern limited duration tenancy (within the meaning of section 5A of the 2003 Act),  

(k) a short limited duration tenancy (within the meaning of section 4 of the 2003 Act),    

(l) a tenancy under a lease under which agricultural land is let for the purpose of its being used only for grazing or mowing during some specified period of the year (as described in section 3 of the 2003 Act),   

(m) a private residential tenancy (within the meaning of section 1 of the Private Residential (Tenancies)(Scotland) Act 2016), or 

(n) a student residential tenancy.

For more information on exclusions and excluded tenancies, please refer to Schedule 1 of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 - Excluded accommodation and excluded tenancies.

 

Next: How many licences do you need?