SHORT TERM LETS IN SCOTLAND: LOCATION, VACATION, REGULATION Handy guide

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SHORT TERM LETS IN SCOTLAND: LOCATION, VACATION, REGULATION Handy guide
SHORT TERM LETS IN
SCOTLAND: LOCATION,
VACATION, REGULATION
Handy guide
SHORT TERM LETS IN SCOTLAND: LOCATION, VACATION, REGULATION Handy guide
In April 2021,
                                                                                            the number of appeals
                                                                                             involving short term
                                                                                               lets to have been
                                                                                               considered by the
                                                                                               Scottish Ministers
                                                                                            stood at 26, 18 of which
                                                                                             related to properties
                                                                                                 in Edinburgh.
Do you have a property that you currently let out
on a short term basis? Do you intend to do this in the
future? If the answer to either of these questions is ‘yes’
then you need to understand the rules and regulations
that are coming. The new system may effectively
operate on a ‘fastest finger first’ basis, so the key is to
act swiftly. Brodies’ Planning Law Team is here to help.

Short term lets are not a new             If the legislation is passed:          change of use of the dwelling
phenomenon in Scotland. The                                                      house and so require planning
business of renting self-catering         • local authorities will have until    permission. For now, there are no
holiday accommodation has                   1 October 2022 to establish a        areas in Scotland designated as
been a popular and thriving                 licensing scheme for their area;     short term let control areas but
industry for decades.                                                            the Scottish Government has
                                          • existing operators will have         just published a planning
                                            until 1 April 2023 to apply for
With the rise of platforms such                                                  circular to provide guidance for
                                            a licence; and
as Airbnb and Booking.com, and                                                   planning authorities on how to
an increase in the number of                                                     establish a control area.
                                          • from 1 April 2024 all short term
units being let, the calls for              lets will require a licence to
formal regulation have been                 operate.
high on the political agenda and
remain so, notwithstanding the
                                          In addition to the licensing
immense impact that COVID-19
                                          scheme, planning controls are
has had on tourism and leisure
                                          already available. Powers
over the past year.                                                                           The types
                                          contained within the Planning
                                          (Scotland) Act 2019 allow                   of premises covered by
In response to these calls, the           planning authorities to                      the licensing scheme
Scottish Government intends to            designate all or part of their local           will depend on the
lay legislation before the Scottish       authority areas as “short term let         forthcoming regulations.
Parliament in September 2021              control areas” came into force on             Self-contained short
for a licensing scheme for short          1 April 2021.                               term lets within control
term lets. It is currently
consulting on a revised order                                                          areas will most likely
                                          In a short term let control area,               require planning
for the introduction of the
                                          the use of a property for                          permission.
licensing scheme:
                                          providing short term lets will be
The consultation is running
                                          deemed to involve a material
until 13 August 2021.

SHORT TERM LETS IN SCOTLAND: LOCATION, VACATION, REGULATION
SHORT TERM LETS IN SCOTLAND: LOCATION, VACATION, REGULATION Handy guide
Planning permission for a short           Even if not within a short term                  According to the
term let in a control area is very        let control area, planning
                                                                                        Scottish Government
likely to be a pre-requisite for          permission will still be required if
obtaining a licence. While the            the planning authority decide                   website, there are
2024 deadline for obtaining a             that the use of the property for              around 31,884 Airbnb
licence may seem a distant                short term lets is a material                listing in Scotland. The
deadline, if the numbers of               change of use. There are no
existing short term lets translate        defined principles or parameters                top five location ‘hot
into licensing and planning               for what constitutes holiday                        spots’ are:
applications, local authorities           accommodation in planning. In
are likely to be swamped                  the absence of a specific
leading to lengthy delays.                planning permission authorising                              City of
                                          use as holiday accommodation,                              Edinburgh:
The perceived risk is that by             operators may also seek advice                           9,994 listings
tying licensing to planning the           as to whether:                                           of which 6,622
system could limit the number                                                                       are for entire
of licensed properties in short           1. A new or retrospective                                   homes /
term let control areas so that it            planning permission is                                 apartments
is, in effect, a “first past the post”        required for short term letting
system. Acting now on the                    (whether in the particular
planning front may prevent                   circumstances there is a
                                             material change of use); or            Glasgow
interruptions in renting out                                                                         Highland:
                                                                                      City:
properties in the future.                                                                          6,088 listings
                                          2. No application for planning         2,332 listings
                                                                                 of which 1,537    of which 3,959
The position for operators will             permission may be needed                                are for entire
                                            as there has been 10+ years          are for entire
therefore vary depending on                                                                           homes /
                                            of use of the appropriate               homes /
whether their accommodation is                                                                      apartments
                                            nature and regularity so that         apartments
in or out of a short term let
control area, the boundaries of             use for short term letting
which could be altered in the               can be said to have been
future. Operators should watch              established through time
                                            and therefore is lawful.                                 Argyll and
out for any proposals to                                                                               Bute:
designate their area as a control                                                      Fife:      1,932 listings of
area. Planning authorities will           Crucially all operators of short            1,302
                                          term letting accommodation                                which 1,468
have to publish notice of any                                                      listings of     are for entire
proposed control area and allow           would be well advised to                which 1,005
                                          navigate the new legislative                                homes /
28 days for representations to                                                   are for entire     apartments
be made.                                  framework quickly to establish            homes /
                                          what, if any, formal approval(s)       apartments
                                          is required for their property.

SHORT TERM LETS IN SCOTLAND: LOCATION, VACATION, REGULATION
SHORT TERM LETS IN SCOTLAND: LOCATION, VACATION, REGULATION Handy guide
KEY CONTACTS

Neil Collar                 Karen Hamilton               Elaine Farquharson-Black
PARTNER                     PARTNER                      PARTNER
+44 (0)131 656 0125         +44 (0)141 245 6225          +44 (0)1224 392 251
neil.collar@brodies.com     karen.hamilton@brodies.com   efb@brodies.com

Alison Polson
SENIOR ASSOCIATE
+44 (0)131 656 0257
alison.polson@brodies.com

                               brodies.com
SHORT TERM LETS IN SCOTLAND: LOCATION, VACATION, REGULATION Handy guide
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