Short-Term Let Licensing Implementation Update Report 2024

1. Ministerial Foreword

Over the past decade the number and types of short-term lets have grown significantly and this sector, and the broad needs it services, is now an integral part of Scotland’s accommodation offer. This supports Scotland to be an attractive destination globally for work and leisure, bringing economic and cultural benefits. The requirement to obtain a licence to operate short-term let accommodation across Scotland was introduced in legislation in 2022, with all existing hosts being required to apply by October 2023 in order to continue operating, ensuring consistent safety and quality standards to protect guests, hosts, and communities. These core principles have underpinned our approach throughout development of the legislation and our ongoing engagement with a range of stakeholders on its early implementation. While the requirements are akin to the regulation of other types of accommodation, we recognise this has been a major change to the short-term let sector and I want to thank every short-term let operator who has invested in the future of their businesses by meeting the requirements. I would also like to recognise the efforts of licensing authorities and delivery partners such as Police Scotland and Scottish Fire and Rescue Service who are integral to the operation of the scheme. We are mindful that implementation of short-term let licensing is still within a transitional period, with licensing authorities processing thousands of applications for existing hosts and a steady flow of applications from new hosts. We have therefore committed to continue monitoring delivery and engaging with stakeholders about operational matters. I would like to thank licensing authorities, SOLAR, COSLA, the Industry Advisory Group, booking platforms, community representatives, trade associations and others who have been supporting implementation by providing guidance, providing specialist insight and informing our monitoring. I am, however, conscious that any action to make improvements must be taken forward in a measured way to support licensing to embed during and beyond this transitional period, providing certainty for guests, hosts and communities. Based on our monitoring, and significant ongoing engagement, we have recently made balanced changes to the operation of the scheme. The statutory amendment that recently came into force is by no means the only action we are taking to continue to refine and improve the licensing scheme. We have also announced plans to create an expert group to review and suggest updates to our guidance taking into account feedback since the scheme has launched.

The approach that is being taken aligns with both our commitment to support businesses, and with the Verity House agreement to work in partnership with local government. This report provides our first update on the implementation of regulations for short-term let accommodation in Scotland. We can be assured that following regulation, guests can feel confident in the safety and quality of licensed accommodation, and local authorities and communities have the opportunity to actively participate in ensuring that the activity is well-managed. As more data becomes available, we will continue to review implementation and be responsive in our approach.

Paul McLennan MSP

Minister for Housing