Short-Term Lets Licensing requirements in Scotland extended

The Scottish Government has announced more time for hosts of short-term lets to apply for a licence. The deadline has now been postponed for six months from the original deadline of 31 March 2023 to 1 October 2023.

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The new deadline only applies to those who have been letting out their property before 1 October 2022, all new hosts since this date must have a licence in place before they can accept guests and bookings.

Read the legislation  →

What does this mean?

Short-term let licences will apply to any accommodation which is let to someone who is not using it as their main home, except if they are a member of the owner’s family, using the accommodation to carry out work or service, or student accommodation. Members should note that HMOs rented out for short-term lets still require the short-term lets license, even if they have an HMO license.

Requirements

Under the licence, the accommodation provider must have certain standards in place, including a valid Energy Performance Certificate (EPC), gas and electrical safety certificates and adhere to maximum numbers of occupants. Local authorities can set additional requirements based on the needs of their area, so it is important to check local conditions.

Propertymark’s position 

Propertymark supports the introduction of licences for short-term lets which should ensure better regulation and more effective health and safety requirements are in place. This should bring up the standard of holiday lets to meet the private rented sector (PRS) which has long been regulated by strict health and safety conditions.

The licencing requirements will also enable local authorities to effectively monitor the use of short-term lets in their areas and address the balance of communities, ensuring both business interests and housing needs are met. We also hope that the licence will address the imbalance of investment in the longer-term private lettings, previously short-term let's have been seen as the more lucrative option to the detriment of the PRS.

Eligibility

The new deadline is a one-off extension, so short-term landlords should seek to get their applications in as possible to avoid missing that date and potentially losing business over the all-important Christmas and New Year period.