Could the scales between short term letting and long term letting be tipping

Short term lets have been favoured by second home owners for the limited regulation and the high income potential, however the introduction of short term lets licensing agreements has increased the compliance burden, bringing them more in line with long term lets.

The Scottish Government has put in place this licensing scheme to ensure basic safety standards are in place across all short-term lets operating in Scotland, while also providing discretionary powers to licensing authorities to address the needs and concerns of local communities. Improved visitor experience and confidence will benefit tourism and the economy.

The law around short-term lets changed on 1 October 2022. New hosts are required to apply for a short-term let licence before accepting bookings or receiving guests

The Scottish Government approved the short term lets legislation on Wednesday 19 January 2022. Local authorities have a duty to establish a short term let licensing scheme by 1 October 2022.

Timescales for applying for a short-term let licence

- 1 October 2022: All NEW short term let properties require a licence to operate

- By 1 April 2023 – Existing hosts and operators have to apply for a licence

- By 1 July 2024 – All short-term let properties require a licence to operate

The short-term lets licensing scheme is mandatory for all shortterm let accommodation across Scotland. This includes holiday cottages, B&Bs, guest houses, rooms within a home and unconventional accommodation such as pods and yurts.

Applications for short term let licences are made through the local authority.

Mandatory Conditions attached to all short-term let licences are:

• an annual Gas Safety Record (if applicable);

• Satisfactory equipment installed for detecting, and for giving warning of: a) fire or suspected fire, and b) the presence of carbon monoxide in a concentration that is hazardous to health.

• an EICR (this needs to be carried out once year 5 years);

• a PAT test;

• a private water supply report (if applicable);

• a legionella risk assessment;

• records that upholstered furnishing and mattresses comply with Furniture and Furnishings (Fire Safety) Regulations 1988;

• an EPC;

• buildings insurance and public liability insurance; and

• Your floor plans for the accommodation may need to show: room sizes, fire escape routes, accommodation intended for guests with mobility issues

• an updated welcome booklet, containing your licence once granted, fire, gas, electrical safety information (including Gas Safety Report, EICR, PAT Report) and how to contact the emergency services.

After you apply for your licence, it is estimated that it could take between 9 and 12 months to arrive, but may be longer.

Local councils decide how long your licence will last for however your first licence can last for up to 3 years from the date it was issued. n

Isla Shaw 01786 434622 isla.shaw@galbraithgroup.com