Scotland brings in its Short-Term Lets Licensing Order

Scotland will be the first country in the UK to officially monitor short term lets by requiring all councils to have an operational licensing system in place.

The Short-Term Lets Licensing Order takes effect on 1 October 2022 and is aimed at ensuring an even playing field within the short term let market.

By licensing short term rental properties, the Scottish Government says it will not only protect existing communities in areas with high visitor numbers but ensure an appropriate number are allocated and provide local authorities with an understanding of activity in a particular area.

Advice on the Scottish Government’s website states that anyone offering short-term lets in Scotland will need to apply for a licence.

Ensure the properties are safe

This is, the site goes on, to ensure the properties are safe and that people providing them have been through all the required checks.

It will also help local councils to understand the needs of their local areas and help with handling complaints.

There are four types of short-term let licence:

• ‘Home sharing’ means you rent out all or part of your own home while you’re living there
• ‘Home letting’ means letting all or part of your own home while you’re not there, for example while you are on holiday
• ‘Secondary letting’ means letting a property where you do not normally live, for example a second home or holiday let
• ‘Home letting and home sharing’ means you let out all of part of home both while you are living there and at times when you are not there.

Introduction of health and safety as part of the requirements

Propertymark has shown its support for the licensing system with the introduction of health and safety as part of the requirements being put in place.

Brian Moran, Propertymark’s regional executive for Scotland, said: “It is positive to see that the Scottish Government is taking proactive steps to ensure the safety of those renting short term accommodation.

“With Edinburgh in particular faced with an overhaul of short term lets, licensing will now enable the local authority to control the number available within the capital and encourage longer term rentals which are desperately needed in order to compete with growing demand.”

Propertymark is however continuing to call on the Scottish Government to clarify the definition of a short-term let to ensure the system operates as intended.

In its consultations response, Propertymark proposed two amendments to the order that would make clear that a holiday let falls within the scope of the definition of a short-term let and ensure that landlords providing Houses in Multiple Occupation (HMOs) are not subject to duplicate licensing requirements.

Such an amendment to the HMO definition would have the additional benefit of affording contract and transient workers the same health and safety rights as those that reside in a shared rented property full-time.

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