Short-term let permits in Scotland: government extends the application deadline by six months

Property owners in cities such as Edinburgh will have to apply for short-term let permits as part of a planned Scottish Government initiative to suppress short-term rentals - but the start of the scheme is now postponed. Under the initiative, hosts will be forced to obtain an application in order to run their property as a short-term let.

According to cabinet secretary for housing Shona Robison, the government will now modify the date by which existing operators must apply for a licence from 1 April 2023 to 1 October 2023. It’s supposed to be a “one-off” 6-month extension recognising the wider economic circumstances of the cost of living crisis that is placing pressure on existing short-term let hosts and businesses at a time when they are organising and budgeting for work to comply with the new licensing requirements.

“We do not intend to propose a change to arrangements for new hosts, who will still be required to obtain a licence before they can accept bookings and receive guests. This upholds the purpose of introducing licensing, which is to ensure all new short-term lets across Scotland meet mandatory conditions (including safety standards) and are provided by fit and proper people. I am content that the current legislation still allows the sector to expand, with authorities having discretion to consider licence applications from prospective buyers of short-term let businesses with the current owner/s consent,” the letter adds. “In light of this proposed amendment to extend the deadline for applications from existing hosts, I am re-considering the scope and timing of the licensing review we intended to undertake in Summer 2023. I will update the Committee on this in due course.”

Scottish Housing Secretary Shona Robison

The Association of Scotland's Self-Caterers (ASSC), which lobbied against the proposal, said the extension was only possible following pressure from the ASSC and other tourism stakeholders.

The ASSC reported that small accommodation providers faced a heavy and costly red tape burden just to remain in business. The sector was placed under severe pressure as a result of the additional expense, considering Covid's recovery and the cost of living crisis.

What is the new short-term let scheme in Scotland?

You can read more about it here. But to sum up, local residents in Scotland have raised concerns about the impact of short-term rentals on the community. The list of issues includes anti-social behaviour, noise complaints, and overcrowding.

The property cannot operate as a short-term let without the licence if they do not obtain the permit, and they are liable for a £2,500 fine.

Self-catering accommodation, B&Bs, guest houses, cabins, chalets and other short-term rentals would be classified as 'short-term lets'.

Fiona Campbell, Chief executive of the Association of Self-Caterers, said:

“The ASSC welcomes this announcement by the Scottish Government and we are pleased our hard work, as well as the efforts from our friends across the Scottish tourism industry, has resulted in this development. The ASSC has been pressing hard for a pause to the implementation of the scheme due to the cost-of-living crisis so it’s good to know our voices are being heard.

“Our ongoing concern, however, is that it is not long enough to give our members the breathing space they need to get their license applications approved in the current climate. We do see this as progress and we will continue to push forward on behalf of our members, we know there’s lots of work still to do.”

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