Short term lets - licensing scheme part 2: supplementary guidance

4. Handling licence applications

4.1. Licensing authorities will be familiar with the processes under the 1982 Act for determining licence applications. This chapter focuses on obligations and considerations that are specific to the short-term let licensing scheme.

(a) Additional information from applicants

4.2. Licensing authorities may request, and the Scottish Government recommends they do request, additional information on licence application forms^[20]. The following information, if requested, would need to be included in the public register^[21]:

• the number of bedrooms in the premises,
• contact details for the manager of the premises, if different from the applicant, and
• the Energy Performance Certificate rating (where relevant).

(b) Planning considerations

4.3. A licensing authority may refuse to consider a licensing application if it considers that the use of the premises for a short-term let would breach planning control^[22].

4.4. If a licensing authority refuses to consider an application for this reason, they must tell the host or operator within seven days and explain why they are refusing to consider the application.

4.5. A host or operator who has subsequently obtained planning permission (or a certificate of lawfulness of use or development), can resubmit their licensing application and the licensing authority must not charge any additional fee, provided the host or operator submits their application within 28 days of obtaining planning permission (or certificate).

Links with control areas

4.6. The high-level policy purpose behind control areas is as follows:

• to help manage high concentrations of secondary letting (where it affects the availability of residential housing or the character of a neighbourhood);
• to restrict or prevent short-term lets in places or types of building where it is not appropriate; and to help local authorities ensure that homes are used to best effect in their areas.

4.7. Within a control area a mandatory licence condition relating to planning permission applies to a change of use to a short-term let from the point of designation. This licensing condition is only relevant if:

• their premises is in a control area, and where the use of the premises for a short-term let requires planning permission;
• they are using it for secondary letting^[23]; and
• it is a dwellinghouse (this includes a house or flat).

4.8. In these circumstances, the host or operator must have made an application for planning permission or already have planning permission before they apply for a licence. In most cases, planning applications are determined within two months^[24].

4.9. Where a control area is designated, licensing authorities should publish details of this on their website.

Where planning permission is refused

4.10. Licensing authorities should be advised by planning authorities where they refuse planning permission for short-term lets (see Planning Circular1/2023).

4.11. Note that it will not always be necessary for an application to be refused or licence to be revoked. For example, a host or operator may have a licence to let out one bedroom in their own home but have submitted an application to vary the licence, and an accompanying planning application, in order to let out three bedrooms. In this case, the applications might be declined but the existing licensed activity can continue.

(c) Licence numbers

4.12. The Scottish Government encourages licensing authorities to issue licence numbers in a consistent format across Scotland. This consistency is to aid with data handling and to assist letting agencies and platforms in being able to include the licence number provided by the host or operator in their listings. The format is set out and explained in this chapter and specified in Annex A.

4.13. This consistency in format also applies to:

• provisional licences;
• temporary licences; and
• temporary exemptions.

4.14. This means that all short-term let licence holders in Scotland will have such a number. For ease, we will call this the licence number throughout the rest of this chapter.

4.15. The format of the licence number, alongside information contained in the public register, will allow anybody to identify:

a) the licensing authority who issued the licence (and therefore the area to which the licence relates);

b) the type of licence (or exemption).

4.16. The licence number will also include a 5 digit number issued by the licensing authority. The overall licence number will be unique across Scotland.

(d) Notifying residents and neighbours

4.17. Applicants have responsibility for giving notice of an application for a new, or renewal of a, short-term lets licence.

4.18. Applicants are required to display a site notice at or near the premises so that it can be conveniently read by the public for a period of 21 days beginning with the date on which the application was submitted to the licensing authority.

4.19. A notice must state^[25]—

a) that an application has been made for a licence,

b) the main facts of the application,

c) that objections and representations in relation to the application may be made to the licensing authority, and

d) how to make objections or representations.

4.20. Applicants are required to certify compliance^[26] that they have displayed the site notice as soon as possible after the 21 days has expired.

4.21. A template site notice and certificate of compliance have been included in Licensing Guidance Part 1, however, licensing authorities may wish to develop their own forms for applicants to use.

Objections

4.22. An objection must specify the grounds, but the grounds are not limited by, or defined in, the 1982 Act^[27]. Objections not related to valid grounds for refusal will not be taken into consideration.

Licensing authorities may entertain a late objection if they are satisfied there is a sufficient reason as to why it was not made on time. Where a licensing authority entertains a late objection, they must satisfy themselves as to the sufficiency of the reason for lateness and explain why they have decided to entertain the objection.

(e)Maximum occupancy condition

4.23. It is a mandatory condition that hosts and operators ensure that they do not exceed the maximum number of guests for their premises. This includes making the maximum occupancy clear on adverts and listings and in booking terms and conditions.

4.24. Hosts and operators will state in their application how many guests they would like to accommodate. It would be helpful if licensing authorities could set out how they will determine maximum occupancy, to enable hosts and operators to understand how this will be calculated.

4.25. The Scottish Government encourages licensing authorities to consider criteria

(a) and (b) below when determining maximum occupancy. They may also wish to take other factors into account as relevant, such as (c), using the lowest of these numbers to determine maximum occupancy:

a) the number requested on the application form

b) the maximum number that can be accommodated safely (broken down to the number of adults and the number of children)

c) the maximum number that can be accommodated within tolerable noise and nuisance standards for neighbours

4.26. Licensing authorities may ask applicants to submit (as part of their application) floor plan(s) for their premises indicating room sizes, fire escape routes and accommodation intended for guests with mobility impairment (where applicable).

4.27. Licensing authorities may also wish to ask for plans to show the location of any steps, stairs, elevators or lifts in the premises, as well as the extent and boundary of the building – if relevant.

4.28. The Scottish Government encourages licensing authorities to accept floor plans in different formats (including hand-drawn plans) subject to these plans providing the information in a clear way to meet their requirements.

4.29. In determining an appropriate maximum occupancy for a short-term let premises, licensing authorities should note that minimum space standards that apply to HMO licensing do not apply to short-term lets. Guests staying in a short-term let may be prepared to accept staying in a smaller room that does not meet the HMO bedroom space standards in a number of cases, such as city breaks where the room is only used as a bed for the night, or where the premises has large living accommodation.

Children

4.30. Licensing authorities may choose to specify on a licence that guests may bring a certain number of small children under a specified age limit and these would not count towards the occupancy of the premises. Children above the age limit and any additional children of any age would count towards the occupancy. Licensing authorities may wish to set the age limit as under 10 years, which is in line with the reference to children in the context of housing within the Housing (Scotland) Act 1987.

(f) Facilitating transfer of short-term let licences

4.31. A licence holder may apply to the licensing authority to transfer the licence to a new host/s, subject to there being no objections from the Chief Constable. Where the chief constable does not make any objection or representation the licensing authority must grant the transfer application.

4.32. This will support hosts/operators if they wish to sell by allowing them to market their accommodation as a short-term let (with onward bookings). The licensing authority will consult the Chief Constable as part of the transfer application and prospective hosts/operators will not have to apply for a new full licence. The timeframe left to run on the licence will transfer to the new licence holder. For example, if a licence transfers 13 months into a three year licence, the new licence holder will renew the licence after 23 months.

4.33. We envisage the transfer process will be timely. While the new licence holder should not be routinely asked to re-submit documentation to demonstrate the accommodation still complies with mandatory licensing conditions, licensing authorities may ask for ‘such other information as the authority may reasonably require’. This may relate to PAT testing documentation of any new electrical equipment and/ or statement of compliance with furniture requirements as relevant.

4.34. A licensing authority can charge a fee for handling a short-term let licence transfer.

(g) Provisional licences

4.35. A new host who is building accommodation intended for use as a short-term let can apply for a provisional licence before the construction is complete. The provisional short-term let licence can then be confirmed once the accommodation is complete and the host complies with the mandatory licence conditions. This is intended to provide reassurance to lenders at the initial stage but hosts will not be able to take bookings until their licence application is confirmed by the licensing authority once the accommodation is built.

4.36. When the provisional licence application is made, it must be accompanied by a provisional planning certificate (a certificate from the planning authority stating that planning permission in principle or outline planning permission has been obtained or that no such planning permission is required). Otherwise, the application follows the same procedure as an application for any short-term let license. Where a provisional licence is granted, the licensing authority will advise how long this is granted for. The provisional licence will also automatically be revoked if it is not confirmed within 3 years of its issue (although this period can be extended if the licensing authority is satisfied that completion of the construction has been delayed by factors outwith the licence holder’s control).

4.37. When construction is complete, the provisional licence holder may then apply to the licensing authority to confirm the provisional licence. The application must be accompanied by the provisional licence, a planning certificate (if planning permission was required), a buildings standard certificate and such other information as the licensing authority may reasonably require. Provided the licensing authority is satisfied that the mandatory conditions, and any other conditions imposed on the license can be complied with, the provisional licence must be confirmed. From that point, the host can take bookings. The licensing authority will advise the term of the confirmed licence.