Scotland Short Term Accommodation Licence

The law around short-term accommodation in Scotland has changed, meaning that holiday lets in Scotland will require a licence in order to operate.Sykes are here to help understand what the changes mean, how it impacts you and what you need to do next. Read below for more details on the Scotland Short-Term Accommodation Licence Law change.

What is the Short Term Accommodation Licence?

The Scottish Government have introduced this scheme requiring local authorities to set up their own procedures for ensuring that short-term let properties are licensed.

It is important to note that there are four different types of licence depending on each letting situation. The licence types are as follows:

• secondary letting - letting accommodation that isn't your principal home;

• home letting - letting your principle home when you're not there;

• home sharing - letting part of your principal home when you're not there; or

• home letting and home sharing

Read the consultation report for the Scotland short-term licensing scheme proposal.

What are the timelines?

Below is a list of important dates to keep in mind when thinking about the Short Term Accommodation Licence:

• 1 October 2022: From this date, all licensing authorities should have a scheme in place to be able to receive licensing applications. Hosts and operators who have not offered the property as short-term let accommodation before must have a licence from this date before providing short-term lets

• 30 September 2023: Existing hosts and operators (in operation prior to 1st October 2022) must have applied for a licence by this date in order to continue operating. If you own multiple properties, you will need a licence for each. However, if you own multiple units on one property (i.e. with same address), you will only need one.

• 1 January 2025: All existing short-term lets in Scotland must be licensed by this date

Timelines are subject to change, so be sure to check them regularly.

How long will my licence last, and when do I need to apply for it to be renewed?

It’s a maximum 3 year licence then when renewed it could be for longer. If it’s taking 6-12 months for renewals to be processed, then on or around 2nd anniversary of the licence may be best.

Is the licence for the owner or for the property?It’s for that owner for that property. So:If you sell, the new owner needs a new licence for the property. If you have more than one property (and they don’t all have the same address) you need a licence for each one.

What is the short-term let application process?

From 1st October 2022:

• Local authorities should have a procedure in place in order to begin receiving and processing short-term let licence applications.

• Hosts and operators who have not offered the property as short-term let accommodation before must have a license from this date before providing short-term lets.

If you've short-term let out your property before 1st October 2022, then you have until 30th September 2023 to apply for a licence. You can continue to holiday let until you are told the outcome of your application, and beyond if you have been granted a licence.

For more information on what you need to do, check the website of your local authority, which should contain the relevant details of the process in your area.

See the list at the bottom of the page to find practical information on each Scottish Local Authority's procedure from ourselves, as well as links to important guidance and required documents.

When do I need to apply for a licence?

If paying guests have stayed at your holiday let before 1 October 2022, you will have until 30 September 2023 to apply to the Local Authority where your holiday let is based for a licence. While your licence is being considered, you can continue to holiday let as normal.Licences may take between 6-12 months to come through.If you haven’t had paying guests stay at your holiday let before 1 October 2022, you won’t be able to holiday let until you have a licence to do so. Some local authorities are providing temporary licenses in such circumstances, with a shorter application process, while your fuller application is considered.The Scottish Local Authority for where your property is based should now be ready to accept applications and have published the form and the process for applying. Most have and we have put together links to more information for each local authority’s process as well as links to key guidance and documentation.

Required documents that apply to all Scottish holiday lets

Many of the below requirements already exist; you're now just required to hand these documents to the council and make them more visible to guests.

See the Scottish Government's list of all legal requirements for short-term let licences in Scotland.

The key documents that you'll need to send in with your application form are:

• an annual Gas Safety Record (if applicable);

• an EICR (this needs to be carried out once year 5 years);

• a PAT report;

• a private water supply report (if applicable);

• a legionella risk assessment;

• records that upholstered furnishing and mattresses comply with Furniture and Furnishings (Fire Safety) Regulations 1988;

• an EPC;

• buildings insurance and public liability insurance; and

• an updated welcome booklet, containing your licence once granted, fire, gas, electrical safety information (including Gas Safety Report, EICR, PAT Report) and how to contact the emergency services.

Your licence will be shared with the local Chief Constable and fire service/authority, and it may be advertised in the local paper.

You will need to inform your neighbours that you've applied for a licence - once you've applied, display this completed template (or the one your Scottish Local Authority has prepared) near your property where the general public can easily read it for 21 days from the date on which you submitted your application form to the Local Authority, and then send the notice and confirmation slip to your Scottish Local Authority to show you've done this.

The notice will say how neighbours can object and make representations, and they may be on matters such as the application form being inaccurate or misleading, safety concerns, compliance concerns etc. Objections will be sent to you, you can respond to them and the Local Authority will then consider the matter, arrange a hearing if needed, and you may have a right of appeal.

After you apply for your licence, it is estimated that it could take between six and 12 months to arrive. You will also need to update your welcome pack to include: (a) a certified copy of your licence and licence conditions, (b) “fire, gas and electrical safety information” (the law doesn’t currently specify what this is), (c) details of how to summon the assistance of emergency services, (d) a copy of the gas safety report, (e) a copy of the Electrical Installation Condition Report and (f)a copy of the Portable Appliance Testing Report.When advertising your property online, you will need to include your licence number and EPC rating if an EPC is required. The advert for your property needs to match the details in your licence e.g., number of bedrooms.Once you have received your licence, it will last for up to three years before you need to apply for another one (Local Authorities can decide their licenses will last for less time). Be wary that if applications are taking 12 months to be processed, that you may need to begin applying for renewal after around two years.

Who should apply for the licence and who needs to consent to the application being submitted?

You (as owner, leaseholder, tenant) can apply for a licence.Joint owners/leaseholders/tenants and freeholder (where there is one) will need to consent to you submitting the application.If you don’t own the property or the land it’s on, the owner(s) will also need to consent to you submitting the application. The law doesn’t say who an owner is e.g., is it the freeholder, long leaseholder, leaseholder that’s registrable at the Land Registry. We are waiting for government guidance on this.We suggest checking with the relevant people that they will be happy to consent.

What happens when I want to sell my property and the buyer wants to let it?

The buyer would need their own licence to let the property.If an owner dies his or her licence passes to his or her executor for a 3-month period and then expires unless, the executor applies to the Local Authority for this period to be extended for the purposes of him or her winding up the deceased owner’s estate. The buyer would need their own licence.

What happens when the ownership of my property otherwise changes e.g., a change in joint owners?

If a joint owner ceases to be such the licence remains with the other joint owners for 6 weeks, during which time they need to make a new application for a licence to enable them to continue letting until a final decision is received from the Local Authority.

What information is needed for a short-term let licence?

When applying for a licence for your property, your local authority will need to know details such as;

• Which licence you are applying for

• Who owns the property

• Confirmation that you have health and safety measures in place and relevant certification, as well as other documentation for things such as planning permission (where necessary) and insurance

What conditions could be attached to my licence that I have to follow?

The mandatory conditions set by the Scottish Govt. which are here and any chosen by your local authority. Links to info on each local authority are here.But no licence can restrict the number of nights for which a property can be short term let.

Helpful hints

• Where the form asks for details of who carries out day to day management of your property, that may be you, a friend, a spouse, someone you employ as your representative etc., it won't be your marketing and letting agent i.e. Sykes who instead deal with bookings

• If you don't own the property (freeholder), and you lease or licence it, or you own it jointly, remember to contact the person who owns it or the other joint owners soon to ensure they can sign the declaration you need them to sign in time

• Check that what you're wanting to insert in the form for a number of guests, beds etc. matches your property advert on any listing websites, and get in touch with your agent if it doesn't

• If you want to make material changes to the property after the license has been granted, then you will need the consent of your local authority to make those material changes.

• Conditions chosen by the Local Authority may be attached to the license, but no license can restrict the number of nights that a property can be short term let for.

Why could a licence be rejected?

The criteria for a short-term let licence application being rejected are as follows:

(a) the applicant or, where the applicant is not a natural person, any director of it or partner in it or any other person responsible for its management, is either—

(i) for the time being disqualified under section 7(6) of this Act, [convicted of a particular offence in relation to a licence] or

(ii) not a fit and proper person to be the holder of the licence;

(b) the activity to which it relates would be managed by or carried on for the benefit of a person, other than the applicant, who would be refused the grant or renewal of such a licence if he made the application himself;

(c) where the licence applied for relates to an activity consisting of or including the use of premises or a vehicle or vessel, those premises are not or, as the case may be, that vehicle or vessel is not suitable or convenient for the conduct of the activity having regard to—

(i) the location, character or condition of the premises or the character or condition of the vehicle or vessel;

(ii) the nature and extent of the proposed activity;

(iii) the kind of persons likely to be in the premises, vehicle or vessel;

(iv) the possibility of undue public nuisance; or

(v) public order or public safety; or

(d) there is other good reason for refusing the application; you cannot secure compliance with any other conditions your local authority require or seek to apply in respect of your application (see what info on your local authority through links here).Note: if your license is refused, you will need to wait 12 months before applying again.

Scottish Local Authority Short Term Let Licence Processes

Find below links to more information surrounding each Local Authority's process, as well as links to key guidance and documentation (information within these pages was correct as of 14.11.2022):

Aberdeenshire

Aberdeen City

Angus

Argyll and Bute

Clackmannanshire

Comhairle nan Eilean Siar (formerly Western Isles)

Dumfries and Galloway

Dundee

East Ayrshire

East Dunbartonshire

East Lothian

East Renfrewshire

Edinburgh City

Falkirk

Fife

Glasgow City

Highlands

Inverclyde

Midlothian

Moray

North Ayrshire

North Lanarkshire

Orkney Islands

Perth & Kinross

Renfrewshire

Scottish Borders

Shetlands Islands

Stirling

South Ayrshire

South Lanarkshire

West Dunbartonshire

Next steps

Please read the relevant guidance yourself. Any summary we prepare isn't a substitute for this, and remember to send you holiday letting agent your licence number (including a provisional or temporary one), once you've been issued with it, and they can add it to your listing.

“Sykes Cottages Ltd (“Sykes”) is not providing you with advice (legal, financial, tax or otherwise). You should seek your own. Sykes is not making any representations or warranties about any of the information here being complete or free from errors or inaccuracies. However, at the time of publishing (22 November 2022) Sykes did take steps to check if this was the case. Sykes shall not be liable for any loss or damage arising under or in connection with your reliance on any of the contents displayed on this webpage.”