Something was said about the new licensing scheme for short-term lets in our February BPU. But as the system goes live on the 1st of next month (October) it may be worth offering an outline re-cap.
From 1 October 2022, if you use a property to offer short-term lets for payment you’ll need to apply to your Council for a licence. (That is however subject to various specific exclusions detailed in the Civic Government Scotland Act 1982 (Licensing of Short-term Lets) Order 2022 (“the 2022 Order”).)
Examples (some surprising) of the various types of accommodation covered by the new scheme
- B&B and guesthouse
- Boat (fixed and not used as transport)
- Boathouse
- Cabin
- Castle
- Chalet
- Cottage
- Exclusive use venue where accommodation is provided (that does not have a licence to sell alcohol)
- Farmhouse
- Holiday caravan or glamping pod that does not already have a caravan site licence
- Lighthouse
- Lodge
- Self-catering or holiday let
- Serviced apartment, either on its own, or up to four in a building
- Shared home or rooms within a home
- Shepherd hut
- Tent, tipi or wigwam
- Treehouse
- Yurt
Types of accommodation not covered by the new scheme
- B&Bs and guest houses with a licence to sell alcohol
- Bothies
- Hotels
- Serviced apartments (or “aparthotel” as defined in the 2022 Order).
The four different types of short-term let licence that may be required
(1) “Home sharing” where you rent out all or part of your own home while you’re living there.
(2) “Home letting” where you let out all or part of your own home while you’re not there – for example while you are on holiday.
(3) “Secondary letting” where you let a property in which you do not normally live – for example a second home or holiday let.
(4) “Home letting and home sharing” where you let out all of part of your home both while you are living there and also at times when you are not there.
The cost of a licence
Licensing fees will be set by local authorities and so will vary from Council to Council. As at the time of writing Glasgow City Council does not appear to have published what the fees will be. But the “City of Glasgow Licensing & Regulatory Committee – Short Term Lets Draft Policy 2022” Short Term Lets (glasgowconsult.co.uk) says:
Grant
| Maximum Occupancy applied for (4 or under) | Maximum Occupancy applied for (5 or more) | |
| Secondary Letting | £250 | £400 |
| Home Letting or Home Sharing (or both) | £125 | £275 |
Renewal
| Maximum Occupancy applied for (4 or under) | Maximum Occupancy applied for (5 or more ) | |
| Secondary Letting | £200 | £350 |
| Home Letting or Home Sharing (or both) | £75 | £225 |
Time limits for existing hosts
If you’re already using your property to provide short-term lets, you have until 1 April 2023 to apply for a licence. You’ll need to show evidence that you used the property for short-term lets before 1 October 2022. You can keep letting your property while you wait for the local council to approve your licence.
Time limits for new hosts
If you were not using your property to provide short-term lets before 1 October 2022, you must apply for a licence before you start offering lets. It’s against the law to take bookings or host guests before you have a licence.
Planning Permission
The current draft “City of Glasgow Licensing & Regulatory Committee – Short Term Lets Draft Policy 2022” Short Term Lets (glasgowconsult.co.uk) says:
“An applicant would not currently require planning permission for:
- Home sharing whether the premises is a flat or a house;
- Secondary Letting where the premises is a house; or
- Home Letting where the premises is a house.”
But that may well change.
Note: This material is for information purposes only and does not constitute any form of advice or recommendation by us. You should not rely upon it in making any decisions or taking or refraining from taking any action. If you would like us to advise you on any of the matters covered in this material, please contact Andy Lindsay: email Andrew@mitchells-roberton.co.uk