Licensing & Compliance
Short-Term Let Licensing in Scotland: The Complete Guide
Since October 2022, all short-term let operators in Scotland must hold a licence. This guide covers everything from application to compliance.
Overview
The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 introduced a mandatory licensing scheme for all short-term lets in Scotland. The scheme came into force on 1 March 2022, with all local authorities required to have their schemes operational by 1 October 2022.
The scheme was introduced to ensure basic safety standards across all short-term lets, help licensing authorities understand activity in their area, and assist with handling complaints from neighbours and residents.
All existing hosts were required to apply for a licence by 1 October 2023. Operating without a licence is a criminal offence carrying fines of up to £2,500. Advertising without a licence is also an offence.
Who Needs a Licence?
You need a licence if guests pay to stay in your property and it is not their main residence, with no private residential tenancy in place. This covers:
- Holiday cottages and self-catering units
- Airbnb and Booking.com properties
- Bed and breakfasts and guesthouses
- Rooms within your own home (home sharing)
- Your own home while you're away (home letting)
- Secondary lets (properties that aren't your main residence)
- Unconventional accommodation — cabins, pods, yurts, glamping, boats, treehouses, castles, lighthouses
Even one-night stays require a licence. You can advertise without a licence, but you cannot take bookings or receive guests until a licence has been granted.
Exemptions
You do not need a licence if:
- Guests are immediate family members
- The guest lives there as their main home
- There is a private residential tenancy in place
- It falls under specific education or care arrangements
- The property holds a caravan site licence or liquor licence covering accommodation
Licence Types
Home Sharing
Renting part of your home while you live there. You must be present during the guest's stay.
Home Letting
Renting your entire home while you're away. The property must be your principal home.
Home Sharing & Letting
A combined licence covering both scenarios — sharing while present and letting while away.
Secondary Letting
Letting a property that is not your main residence. This is the most common type for dedicated holiday lets and Airbnb properties.
You need a separate licence for each property. Licences are typically granted for 1–3 years depending on your local authority and licence type.
How to Apply
Check planning requirements
Before applying for a licence, check whether you need planning permission. In Short-Term Let Control Areas (currently Edinburgh and Badenoch & Strathspey in Highland), secondary lets automatically require planning permission. Outside control areas, planning may still be required depending on circumstances.
Gather safety documentation
You'll need: gas safety certificate (if applicable), electrical installation condition report (EICR), portable appliance testing report, fire risk assessment, Scottish Fire & Rescue Service safety checklist, legionella risk assessment, buildings and public liability insurance certificates, and floor plans showing room dimensions and escape routes.
Submit your application
Apply through your local council's website. There is no central system — each of the 32 Scottish councils manages its own applications. Complete the application form, upload supporting documents, and pay the application fee.
Display the site notice
After submitting, you must display a statutory notice at or near the property for 21 days. This allows neighbours to raise objections. After the display period, complete and return the certificate of compliance to your council.
Wait for determination
Councils have up to 9 months to process applications. Straightforward applications typically take 3–6 months; high-demand areas like Edinburgh can take 6–9+ months. If a council fails to determine within 9 months, the application is deemed granted for 1 year under Section 3(4) of the Civic Government (Scotland) Act 1982.
Mandatory Safety Requirements
All licensed STLs must comply with mandatory conditions covering safety, guest information, and property standards:
Fire Safety
- ✓Interlinked smoke alarms on every floor
- ✓Heat alarms in kitchens
- ✓Carbon monoxide detectors where applicable
- ✓Fire risk assessment completed
- ✓Fire blanket and extinguisher in kitchen
- ✓Clear escape routes identified
Gas & Electrical
- ✓Annual gas safety certificate (CP12)
- ✓Electrical Installation Condition Report (EICR)
- ✓Portable Appliance Testing (PAT)
- ✓All installations by qualified professionals
Water & Health
- ✓Legionella risk assessment
- ✓Safe water temperature management
- ✓Carbon monoxide alarm instructions displayed
- ✓First aid kit available
Insurance & Documentation
- ✓Buildings insurance certificate
- ✓Public liability insurance
- ✓Floor plans with room dimensions
- ✓Guest safety information pack displayed
- ✓Licence number displayed on all listings
Fees
Fees vary significantly between councils and depend on licence type and property capacity. Here are typical ranges:
| Property Size | Home Sharing/Letting | Secondary Letting |
|---|---|---|
| 1–2 guests | £120–£320 | £348–£653 |
| 3–6 guests | £354–£477 | £387–£572 |
| 7–10 guests | £405–£572 | £447–£699 |
| 11+ guests | £530–£795 | £610–£5,869 |
Ranges based on published fees from Edinburgh, Highland, South Lanarkshire, and Scottish Borders councils. Edinburgh secondary let fees are notably higher. Check your specific council for exact fees.
Temporary Licences & Exemptions
Licensing authorities can offer temporary licences and temporary exemptions from licensing, each lasting up to 6 weeks. You can apply for a maximum of 3 exemptions per calendar year (combined total of 6 weeks).
Temporary licences/exemptions are particularly useful for:
- Festival and event letting (e.g. Edinburgh Fringe)
- Hosts waiting on a full licence or planning outcome
- Property owners trialling the STL market
- Seasonal operators
Not all councils offer temporary licences — check your local authority's policy. Edinburgh is the most active, issuing 155 temporary licences and 284 temporary exemptions last summer. East Lothian is consulting on introducing the option.
Enforcement
Operating without a valid licence is a criminal offence. Penalties include fines of up to £2,500 and prohibition from letting your property. Enforcement is actively underway across several council areas.
Importantly, having a licence does not protect you from planning enforcement. If your local authority's planning department considers the use to require planning permission, a Planning Enforcement Notice can force you to cease trading in as little as 2 months — even if your licence is valid and has years to run.
Enforcement Notices can be appealed, and STL Solutions has significant experience in this area. Appeal deadlines are short and strictly mandated by law.
Short-Term Let Control Areas
There are currently only two STLCAs in Scotland:
City of Edinburgh
Whole city. Confirmed 5 September 2022.
Highland — Badenoch & Strathspey
One ward only. Confirmed 4 March 2024.
In a control area, secondary letting of a dwellinghouse is automatically deemed a material change of use, triggering a requirement for planning permission. This does not apply to home-lets or home-shares, or to uses that pre-date the control area's confirmation.
Other councils are considering whether to declare control areas. Any move requires Scottish Government assent.
Need help with your licence application?
We've secured over 500 licences across Scotland. From application to approval, our team handles the complexity so you can focus on your business.