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Niall Hassard, legal director at UK law firm TLT, shares key points and licensing requirements following a change in legislation in regards to short term lets in Scotland.
The staycation trend has added to the demand for holiday accommodation – flats, cottages and more unusual accommodation like treehouses and yurts. The ripple out effect on Scottish towns and cities provides valuable economic benefits for hospitality business. Accordingly, the decision by the Scottish government to introduce a licensing scheme for holiday accommodation has divided opinion. Whilst no-one argues against a need to ensure basic safety standards are in place, there is concern that the cost and red tape associated with licensing may see hosts drop out of the market and leave a deficit of much needed accommodation.
Types of property caught
The new law will catch a broad spectrum of residential properties from houses, to rooms within a house, as well as cottages.. There are exemptions for certain types of premises such as hotels, licensed premises (pubs with rooms), serviced accommodation of five or more apartments and accommodation brought by the guest e.g. a tent they pitch themselves.
The four types of short-term let
- 1
“home sharing”: using all or part of your own home for short-term lets whilst you are there;
- 2
“home letting”: using all or part of your own home for short-term lets whilst you are absent, for example whilst you are on holiday;
- 3
“secondary letting”: the letting of property where you do not normally live, for example a second home; and
- 4
“home letting and home sharing”: you operate short-term lets from your own home while you are living there and also for periods when you are absent.
The length of letting to be considered “short term”
There is no length to be considered. The test is whether the property is the guest’s only or principal home.
Applying for a licence
The legal owner must apply for the licence but can name an agent or someone who manages the property on the application. Both owner and, if applicable, day-to-day manager must be fully disclosed in the application as they are vetted to ensure they are a fit and proper person. You may need planning permission as some authorities view holiday letting as a material change from residential use.
At its core, the system aims to ensure the suitability and safety of the property and effective management so as not to cause a nuisance. You can expect to have to produce, layout plans, safety certificates (for gas, electric and appliances etc), fire safety information and insurances.
The application will be advertised and neighbours and relevant authorities (police, building control, fire service etc) can comment or object. The application will attract a non-refundable fee.
Go live dates
If you operate a short-term let prior to 1 October 2022, you will have until 1 April 2023 to submit an application (evidence of pre-existing use will be required).
If you wish to commence letting post 1 October 2022, you must apply and have the licence granted before you can take bookings or host guests.
If you are letting holiday accommodation from 1 October 2022 you will need to ensure you are complying with new law on Licensing of Short-term Lets
More information https://www.gov.scot/publications/short-term-lets-scotland-licensing-scheme-part-1-guidance-hosts-operators-2/pages/1/