Short term lets - licensing scheme part 2: supplementary guidance for licensing authorities, letting agencies and platforms

6. Handling licence applications

6.1. 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.

Additional information from applicants

6.2. Licensing authorities can request additional information on licence application forms^[18]. The following information, if requested, would need to be included in the public register^[19]:

• the number of bedrooms in the premises,
• data on availability and occupancy,
• contact details for the manager of the premises, if different from the applicant, and
• the Energy Performance Certificate rating.

6.3. For a full set of information to be included in the public register, see chapter 8.

6.4. Requesting data on availability and occupancy could be useful to licensing authorities in better understanding the level of short-term let activity and building an evidence base to support further targeted policy interventions, where necessary.

6.5. Licensing authorities should put in place checks to ensure that the people named on the application form is a complete and accurate list. Licensing authorities should be alert to people hiding their involvement because they are not likely to be regarded as fit and proper persons. For example, where one spouse purports to be the only person involved in the short-term let on the application form because the other has a criminal record. It may be that there is certain additional information that could assist with these checks.

Planning considerations

6.6. A licensing authority can refuse to consider a licensing application if it considers that use of the premises for short-term lets would constitute a breach of planning control^[20]. That is to say, if it looks like the host or operator needs planning permission but does not have it.

6.7. This power is designed to assist licensing authorities in handling applications for secondary letting of a dwellinghouse within control areas. But licensing authorities can use it in other circumstances too.

6.8. The licensing authority has only 21 days from receipt of a valid application to decide to refuse to consider the application on these grounds.

6.9. 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.

6.10. 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

6.11. The interaction of control areas with overprovision policies is discussed in chapter 3.

6.12. It is a mandatory condition that a host or operator has planning permission or has made an application for planning permission where all of the following conditions apply:

• their premises is in a control area;
• they are using it for secondary letting; and
• it is a dwellinghouse.

6.13. 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^[21].

6.14. Licensing authorities should be aware that planning authorities could designate control areas affecting licensed premises after they have been licenced. Licensing authorities should ensure that licensed hosts or operators who may be affected by the designation of a control area are alerted as part of the planning authority’s consultation process.

6.15. Licensing authorities should give licensed hosts and operators a reasonable opportunity to comply with this mandatory condition by submitting a planning application. The host or operator should do this as soon as possible after the control area is designated.

Where planning permission is refused

6.16. Licensing authorities should be advised by planning authorities where they refuse planning permission for short-term lets (see Planning Circular 1/2021). The licensing authority should then ensure that any application or licence contingent on the planning permission is refused, varied or revoked as appropriate.

6.17. 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 licenced activity can continue.

Licence numbers

6.18. Licensing authorities must issue a unique licence number to a host operator as soon as reasonably practicable after an application for the grant or renewal of a licence has been made^[22]. This is known as a provisional licence number (not to be confused with a licence number for a temporary licence).

6.19. Licensing authorities may wish to issue a different licence number to a host or operator on renewal than on the previous licence.

6.20. Licensing authorities should issue a number in the same format for:

• temporary licences; and
• temporary exemptions.

6.21. This means that all hosts and operators in Scotland providing short-term lets will have such a number. For ease, we will call this the licence number throughout the rest of this chapter.

6.22. The licence number should be in a consistent format across Scotland. This consistency is to aid with data handling (see chapter 8) and to assist letting agencies and platforms in being able to host the licence number provided by the host or operator in their listings. The format is set explained in this chapter and specified in Annex C.

6.23. The licence number should contain data to 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 short-term let to which the licence relates; and

c) the type of licence (or exemption).

6.24. The licence number will also include a 16 digit number which is unique to licences issued by that licensing authority and should be capable of authentication (i.e. generated from an algorithm that makes it harder to produce fake numbers). The overall licence number will be unique across Scotland when combined with the header data.

6.25. The Scottish Government will work with licensing authorities, letting agencies and platforms to develop the numerical algorithm. The algorithm will include fraud prevention measures (i.e. not issuing sequential or predictable numbers).

6.26. The Scottish Government will assist letting agencies and platforms in building licence number validation into their sign-up processes. Hosts and operators are allowed to advertise and list their properties before they have a licence (and before they have applied for one), see Guidance Part 1. However, after 1 April 2024, it will be illegal for any host operator to take bookings or host guests in their property without a licence and letting agencies and platforms should have processes for removing unlawful properties from their listings, see chapter 7.

Notifying residents and neighbours

6.27. Licensing authorities, rather than the host or operator, have responsibility for giving notice^[23] of relevant applications being:

a) an application for a licence;

b) a renewal application, where a material change has taken place since the original grant of licence; and

c) an application for a material change to the circumstances or premises in respect of an existing licence.

6.28. The policy intention of (b) is to streamline the renewal process as much as possible.

6.29. To give notice, licensing authorities have the choice of:

• sending a notice to premises on neighbouring land; or
• displaying a notice.

6.30. Neighbouring land has the following meaning^[24] and aligns with the planning definition:

“neighbouring land” means an area or plot of land (other than land forming part of a road) which, or part of which, is conterminous with or within 20 metres of the boundary of the premises.

6.31. Broadly speaking the licensing authority must notify neighbours within 20 metres of the boundary of the premises. In urban areas, this is more than sufficient to include all residents on a tenement stair and neighbouring tenement stairs. In rural areas, this will at least extend to nearest neighbours.

6.32. Licensing authorities have the power to notify such other persons as they consider appropriate about a licensing application (and related planning notice). Licensing authorities should consider whether to give notice to any community council or development trust in whose area the premises is located; whether this is appropriate will depend on the circumstances, as community councils are unlikely to be interested in seeing all applications.

6.33. A notice must state—

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

b) the main facts of the application^[25],

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.

6.34. Local authorities as licensing authorities are responsible for giving notice of licensing applications and as planning authorities for giving notice about planning applications. In some cases, planning permission will be required for secondary letting, either by virtue of the premises being in a control area or by virtue of the licensing authority’s planning policy.

6.35. Licensing authorities have the power to combine licensing notices with a planning notice or to issue a planning notice only; the latter being useful where a planning application for a short-term let precedes a licence application. Licensing authorities should give serious consideration to using these powers.

6.36. The policy intention behind this change from the usual 1982 Act procedure to put the duty on the licensing authority to publicise the application, and the power to combine with planning notices, is:

a) to reduce the burden on applicants, as licensing authorities are better placed to identify relevant premises;

b) to avoid mischief between applicants and neighbours around claims over whether notice was given;

c) to reduce confusion for neighbours where they might otherwise receive both a licensing notification and a planning notice in respect of an application for a licence for secondary letting; and

d) to give licensing authorities the possibility of streamlining the handling of objections, should they wish to do so.

Objections

6.37. With regard to (d) above, licensing authorities should consider preparing a standard form for objections which guides neighbours to relevant grounds for licensing and, separately, planning purposes. The grounds for objection to an application should relate to the purposes of the licensing scheme or planning rules. For example, concerns relating to: safety, noise or nuisance or previous complaints are likely to relate to licensing; and the availability of residential housing, the impact on the character of the neighbourhood or the suitability of the building relate to planning.

6.38. Licensing authorities should be helpful but must not be seen to be coaching or directing how members of the public make objections to a licensing application. An objection must specify the grounds, but the grounds are not limited by, or defined in, the 1982 Act^[26].

Third party accreditation

6.39. Licensing authorities may wish to consider accepting third party evidence, accreditation or certification from bodies such as Quality in Tourism or Visit Scotland in lieu of visiting premises in some circumstances. This may provide efficiencies for licensing authorities, whilst still ensuring that minimum standards are met. This might be particularly beneficial in the case of remote, rural premises. However, it is entirely for licensing authorities to determine what they will accept from hosts and operators to demonstrate compliance with the mandatory conditions, and any additional conditions which the licensing authority has attached.

Licensing committees and determining applications

6.40. Licensing authorities should bear in mind that some hosts and operators, and some objectors, will find appearing before a licensing committee a daunting prospect. Every effort should be made to put people at their ease and ensure they understand the process and their role in it.