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Short-term lets legislation - in a nutshell
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25/01/2022

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Short-term lets legislation - in a nutshell

On 19th January 2022, the Scottish Government approved legislation obliging local authorities to implement a licensing scheme for short term lets by October 2022.

This new legislation applies to the whole of Scotland, including Bute.  With thousands of premises in the region now requiring site visits, compliance monitoring and enforcement, and without any additional central funding being made, A&B Council will no doubt have to fund the scheme setup and administration costs from licence fees.  These fees, and full details of the licence terms, will be published in due course.

Existing hosts and operators of short-term lets will have until April 2023 to apply for a licence, and ALL short-term let properties will require a licence by July 2024.

 

Definition of "short-term let"

Whilst there is some scope for A&B Council to tinker around the edges with definitions and scope, the legislation broadly defines three types of short-term let that WILL require licences:

Home Sharing, where hosts provide use of all or part of their home whilst they are there;

Home Letting, where hosts provide exclusive use of part or all of their home whilst they are NOT there;

Secondary Letting, where hosts let properties they do not normally occupy



One or multiple licences?

It is expected that a separate licence will be needed for each premises.

However, a single licence may be required in respect of unconventional accommodation - for example where there is more than one separately bookable property on a single site (NB: unlikely to include dwellinghouses).

 



Definition of "short-term let"

This will be fully defined in due course, but essentially if you have made an agreement in the course of business - for example setting out terms and conditions in a contract (potentially verbal) and accepted payment.

Having a friend stay over would not normally be an arrangement in the course of business as long as a fee is not charged, or services in lieu offered.  House swaps will almost certainly fall under the licence requirements.

If you are letting a property to a person or persons as their only or principal home, this is likely to be excluded from the short-term let legislation (but of course falls under other guidance).

The length of "short-term" is likely to range from one night to several months - exact guidance on this will be provided in due course.

Short-term lets to immediate family are likely to be excluded, as are those staying to provide services such as health or personal care, or for educational reasons such as exchange visits.

 



What will be needed as part of the application process?

The licensing authority will alert neighbours within 20 metres of the boundary of the premises in order to allow them to raise any concerns or objections to a licence being granted, with any objections being dealt with in writing or through a hearing.

The licensing authority has the right to refuse licences on the grounds of overprovision in a particular area.  They will check the suitability of you (via a fit and proper persons test), and any other persons named on your application form (this will include agents and anyone involved in the day-to-day management of the premises), compliance with mandatory conditions and any additional conditions attached to your licence, and the suitability of the premises.

The premises must be safe for residential use in the opinion of an Environmental Health officer.  This also includes maximum occupancy.

Where the premises is a dwellinghouse, a repairing standard will need to be attained, which will include wind and water-tightness, water, gas, electricity and sanitation installations in reasonable repair and good working order, fixtures and appliances in reasonable state and proper working order, furnishings capable of being used safely for their intended purpose, fire detection and warning, CO detection and warning etc.

An EPC issued within the last 10 years is needed for secondary letting.

Various risk assessments must be carried out including fire, water safety of private supplies, legionella, gas safety, electrical condition reports (max 5 years old).  Premises must also be insured (buildings as a  minimum) and public liability insurance provided to a minimum of £5 million.



Further Reading...

Read the government guidance in full
External Website