Short-Term Let Licensing Implementation Update Report 2024

7. Actions log

Below is a summary of actions listed within the Scottish Government response to feedback about implementation themes. It is important to emphasise that we are taking a measured approach, recognising that regulation has introduced new requirements for hosts and the sector needs time to embed these. This comes with assurance though that there are mechanisms in place for continuous operational improvement.

7.1 2024 Amendment Order to The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets)

In response to feedback raised through ministerial engagement, stakeholder engagement groups, correspondence and direct engagement with individual stakeholders we brought forward The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Amendment Order 2024, which came into force on the 30 August 2024.

Provisions within this Amendment Order made the following changes:

• Commercial consideration definition – The wording ‘a provision of service’ has been deleted from the definition of “Commercial consideration” to recognise that this could be confusing, when read in conjunction with Article 3 (d) of the 2022 Licensing Order that excludes accommodation if it is provided for the principal purpose of facilitating the provision of work or services by the guest to the host or to another member of the host’s household.
• Foster arrangements – The Amendment Order also clarifies that foster arrangements will not require a short-term let licence.
• Single licence for multiple accommodation units on the same premises – the 2024 Amendment Order clarifies that licensing authorities do not need to refuse an entire short-term let licence application where there are multiple accommodations on a single premises. The licensing authority may grant a licence in respect of all or some of that accommodation.
• Licence transfers – this is a new process whereby a short-term let licence may be transferred to someone else on application by the licence holder. A short-term let licence holder can apply to the licensing authority to transfer the licence into the name of a third party, subject to there being no objections from the Chief Constable. 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) or if there are other reasons why a licence needs to be transferred such as the licence holder has died and an executor acts on their behalf. 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.
• Temporary exemptions – local authorities already have the power to authorise temporary exemptions from the requirement to have a short-term let licence for a period of up to 6 weeks. The 2024 Amendment Order clarifies that there may be up to three periods of temporary exemption in each calendar year which must not exceed a combined total of six weeks.
• Provisional licences for new build short-term lets– The 2024 Amendment Order includes provision so that a new host who is building accommodation intended for use as a short-term let can apply for a provisional licence at the construction stage. 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 once the accommodation is built.
• Information to be displayed at short-term let premises – The 2024 Amendment Order inserts a requirement for two new pieces of information to be displayed at a short-term let premises as part of compliance with the mandatory conditions for such licences. The new provisions require licence holders to make the following information accessible to guests within the short-term let accommodation: 1) instructions as to what guests should do in the event that the carbon monoxide alarms sounds and, where relevant, 2) if there is a mobile gas cabinet heater in the premises, safety instructions as to the operation and movement of the mobile heater.
• Exclusion for guest rooms in specific types of residential accommodation – The 2024 Amendment Order clarifies that guest rooms provided in residential accommodation where personal care is provided, guest rooms in hospitals, guest rooms in nursing homes and guest rooms in sheltered housing are all classed as excluded accommodation for the purposes of the short-term let licensing regime, if the guest is visiting residents.

7.2 Short-term Let Guidance

We have asked VisitScotland to take forward the establishment of an Expert Group to suggest updates to our Scottish Government guidance for the licensing and planning of short-term lets to make it clearer and more user friendly. Membership of this group will consist of representation from a range of stakeholders with the relevant technical knowledge. The aim will be to publish revised guidance in Spring 2025.

7.3 Consultation

There are a few areas highlighted in this report where we have indicated it would be helpful to consider all views before deciding whether or what action should be taken. The guidance update may also highlight other topics for consideration. We will consider these in conjunction with the guidance update and may undertake public consultation in 2025. Our main objective is to provide stability to the sector and we will be mindful of licence renewals when this is undertaken.

7.4 Ongoing monitoring

The Scottish Government will continue to monitor the implementation of short-term let licensing. We will do this in a proportionate manner by;

• continuing to collect and consider insight from a range of data sources;
• periodically reviewing our own short-term lets licensing data collection, and the format and frequency of statistical publications, to ensure we are maintaining an accurate picture of short-term let licensing;
• continuing stakeholder engagement through established groups;
• providing an update on the implementation of short-term let licensing in 2025, utilising insight collected through the above information streams.