Consultation on licensing of short term lets

Consultation on the details of a licensing scheme for short term lets to take place this summer.

Social Justice Secretary Shona Robison has announced the publication of a draft licensing order for consultation, ahead of laying the final legislation at the Scottish Parliament in September.

Stakeholders have until 13 August to comment on the licensing order and the draft business and regulatory impact assessment.

Draft guidance documents have also been published to explain how the legislation would work in practice.

Ms Robison said: “Regulation of short term lets is vital if we are to balance the needs and concerns of our communities with wider economic and tourism interests. Short-term lets can offer people a flexible and cheaper travel option and have contributed positively to our tourism industry and local economies across the country. 

“However, we know that in certain areas, particularly tourist hot spots, high numbers of short-term lets can cause problems for neighbours and make it harder for people to find homes to live in. By allowing local authorities appropriate regulatory powers through a licensing scheme, we can ensure that short term lets are safe and address issues faced by local residents and communities.

“It will allow local authorities to understand more fully what is happening in their areas and assist with the effective handling of complaints.”

Under the proposed legislation, local authorities will have until 1 October 2022 to establish a licensing scheme, with all short-term lets to be licensed by 1 April 2024. Existing hosts and operators must apply for a licence by 1 April 2023.

The Scottish Government previously withdrew the Licensing Order from the Scottish Parliament in February. This was to allow for draft guidance to be developed with input from the stakeholder working group.

Ms Robison added: “We want to get this legislation absolutely right.  A stakeholder working group was established earlier this year to develop guidance on the licensing scheme that was clear, comprehensive and easy to understand. 

“As part of this, the Scottish Government also set out to allay any unfounded concerns and actively explore solutions to any real issues, with a view to making any necessary adjustments to the Licensing Order.

“Stakeholder working group members have helpfully made a range of suggestions for adjustments to the Licensing Order, as well as providing very significant contributions to drafting the guidance.” 

The consultation runs from Friday 25 June to Friday 13 August 2021. The consultation paper on draft licensing legislation for short-term lets in Scotland and supporting documents can be found here: gov.scot/publications/short-term-lets/.