Policies & Legal

What is Scotland Short-Term Let Licensing?

Updated 2026-05-28

The Scotland Short-Term Let Licensing scheme is a regulatory requirement established by the Scottish Government under The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022. It mandates that anyone providing short-term let accommodation must secure a license from their local authority before accepting guests.

The legislation's primary goals are to ensure consistent safety standards across all lets, give councils appropriate regulatory powers, and provide a level playing field for accommodation providers. The scheme covers a wide range of accommodation types, including home sharing, secondary letting, and unconventional structures.

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How it works

To obtain a license, a host or operator must submit an application to the relevant local council for each property they intend to let. This application requires providing detailed information about the property, the operator, and evidence of compliance with mandatory safety conditions.

These conditions include having a valid EPC, a Fire Risk Assessment, an Electrical Installation Condition Report (EICR), and a Gas Safety Certificate if applicable. Councils have the authority to add their own local conditions to the license.

Once approved, the license number must be prominently displayed on all online listings and advertisements for the property.

Why it matters

For hosts and property managers in Scotland, compliance with the short-term let licensing scheme is a non-negotiable legal obligation. Operating without a license can lead to substantial fines and a prohibition on future hosting activities.

The scheme standardizes essential safety requirements, which can enhance guest trust and safety, but it also introduces significant administrative and financial responsibilities for operators. Property management systems like Lodgify can help hosts manage property details and ensure license numbers are correctly displayed on their direct booking websites.

Examples

  • A host in Edinburgh with a flat they list on Airbnb must apply to The City of Edinburgh Council for a license, including proof of an EPC, EICR, and a fire risk assessment, before they can legally accept any bookings.
  • A homeowner in the Scottish Highlands who rents out a spare room in their own home (home sharing) is also required to obtain a short-term let license from The Highland Council, demonstrating the property meets all safety criteria.
  • A property management company handling several cottages near Loch Lomond must manage the licensing application and renewal process for each individual property, ensuring each unique license number is displayed on their direct booking website and all OTA listings.
  • An operator of a glamping site with several pods in Dumfries and Galloway has to secure a license for their business, adhering to the specific safety requirements relevant to unconventional accommodation types.

Frequently asked questions

Who needs a short-term let license in Scotland?+
Anyone offering paid accommodation to a guest where it is not the guest's principal home. This applies to letting out an entire property (secondary letting), renting a spare room (home sharing), and operating unconventional accommodations like yurts, pods, or shepherd's huts.
What are the common mandatory requirements for a license?+
All applicants must demonstrate compliance with key safety standards. This typically includes a valid Gas Safety Certificate (where applicable), an Electrical Installation Condition Report (EICR), proof of adequate buildings and public liability insurance, and comprehensive fire safety measures like interlinked heat/smoke alarms and a fire risk assessment.
What are the penalties for operating without a license?+
Operating a short-term let in Scotland without a valid license is a criminal offense. Local authorities can issue fines of up to £2,500 and can ban an operator from applying for a license for up to one year. Continued non-compliance can lead to further prosecution.
Is planning permission required in addition to a license?+
It depends on the location and type of let. In areas designated as Short-Term Let Control Areas (e.g., Edinburgh), changing the use of a residential property to a secondary short-term let almost always requires planning permission. In other areas, it may be required depending on the specific circumstances. The license and planning permission are two separate legal processes.
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