On 30 August 2024, The Scottish Government amended existing short-term lets legislation in Scotland, meaning a licence is required for what is known as home sharing, home letting and secondary letting – a summary of which can be found here.
The Civic Government (Scotland) Act 1982 (Licensing of Short-term lets) (Amendment) Order 2024 makes a range of updates to the existing licensing scheme after being passed by the Scottish Parliament.
The main updates to the legislation are as follows:
1. Temporary Exemptions Cap
The 2024 Order places a cap on the temporary exemptions that can be sought from obtaining a short-term lets licence. Hosts may only apply for three periods of exemption per calendar year, with the total exemption period not exceeding six weeks. For more on temporary exemptions under the existing short-term let scheme, please see our article here.
2. Licence Transfers
Short-term let licence holders are able to transfer their licence to third parties via an application to the licensing authority (previously, if a property was sold, the purchaser would be required to submit an application for a new licence). This allows hosts to market properties as short-term lets and ensure smooth transitions where the property is conveyed to others.
3. Provisional Licences
Those building accommodation intended for short-term lets can apply for provisional short-term let licences at the construction stage. Once the building is completed, the provisional licence goes through a streamlined confirmation process. This allows greater regulatory planning where the purpose of the new build is identified in advance.
4. Additional Display Requirements within Short-Term Let Premises
Guests must now be provided with instructions regarding carbon monoxide alarms and mobile gas cabinet heaters where appropriate. This supplements information regarding fire, gas and electrical safety which must already be displayed under the existing legislation and forms part of the mandatory conditions. For more information about mandatory conditions under the short-term lets legislation click here.
Technical Updates
The 2024 Order will also introduce a range of technical updates to the legislation:
The 2024 Order also introduces a range of technical updates to the legislation:
- Guest rooms in residential accommodation linked to the provision of personal and healthcare services are now excluded from the short-term lets regime where the guest is using the room to visit residents. This excludes guest rooms in hospitals, nursing homes and sheltered housing.
- Licenses for multiple accommodation may be granted in respect of all or some of the premises where there are multiple accommodations on a single premise. This is a change from the previous regime, where authorities would need to refuse an application in its entirety. Note that the new rules only apply to applications made on or after 30 August 2024.
- Foster care Arrangements are excluded from the short-term lets regime.
- "Commercial Consideration" has its definition amended so that it no longer includes the provision of a service.
The Regulations came into force on 30 August 2024 and impact existing as well as new short-term let operators.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
