The City of Edinburgh Council’s Short-Term Let Licensing policy was agreed at the end of September, following the introduction of short-term let licensing scheme legislation in Scotland.
This legislation required all local authorities in Scotland to set up short-term licensing schemes by October 2022. All existing short-term let landlords must apply for a licence by April 2023 and all short-term let rental properties must be licenced by July 2024.
We previously answered your FAQs on the draft short-term let licensing legislation, including licence application requirements.
Why have short-term let licensing schemes been introduced?
The legislation was driven by concern in local communities and within housing groups at the rapid increase in short-term lets (particularly Airbnb) and their impact in certain areas, including areas of Edinburgh. Following consultations beginning in 2019, the government committed to giving local authorities control over short-term lets.
Short-term let licensing schemes are intended to allow an area-appropriate balance of local community needs, wider tourism and economic benefits and a quality visitor experience, ensuring that guests and neighbours are safe.
The City of Edinburgh Council’s Short-Term Let Licensing Policy
The Council’s Regulatory Committee agreed a new licensing scheme on Thursday 29th September. You can find the detailed policy on the council’s website.
The policy distinguishes between various letting types:
Secondary Letting – letting a property where you do not normally live, for example a second home or a buy to let investment property.
Home Letting – using all or part of your own home for short-term lets whilst you are absent, for example whilst you are on holiday.
Home Sharing – using all or part of your home for short-term lets whilst you are there.
The council has published the application cost for each licence type.
Secondary Letting
Under the City of Edinburgh Council’s Short-Term Let Licensing policy, it has become clear that getting a licence for secondary letting in Edinburgh is going to be very difficult. Therefore, secondary letting landlords need to consider carefully if the cost of applying for a licence makes financial sense.
In July 2022, Scottish Ministers approved plans to designate the City of Edinburgh Council area as a short-term let control area. This means that for Secondary Letting within the Council area (where the property is let on a short-term residential basis and where the owner is not usually resident), the owner must apply for planning permission for a ‘change of use’ to a short-term let.
The Short Term Let Control Area designation came into effect on 5th September 2022. It is a mandatory condition of licence that a host or operator has planning permission.
The Council believes that tenemental accommodation, or those with a shared main door, are unsuitable for secondary short-term letting due to their character, location, and the risk of creating undue nuisance. The Council is also concerned that the risk of anti-social behaviour may be exacerbated within tenement or shared main door accommodation, given the close proximity of other residential accommodation and communal areas.
The City of Edinburgh Council’s Short-Term Let Licensing policy therefore states:
4.14: For the purposes of this policy, secondary letting in tenement or shared main door accommodation is considered as unsuitable and there will be a rebuttable presumption, as defined in paragraph 2.9 of this policy, against the grant of a licence in such circumstances.
Given the nature of many of our current short-term properties, we sadly expect that most will not be granted a planning change of use or a license due to having shared main door access.. This reinforces our decision to cease managing short-term lets from the end of 2022.
We’re still here to help
We value every client, and for over a decade it has been our pleasure to work with all our short-term let owners. We hope we can continue working with our existing landlords – but we’re here to help all short-term let landlords who may need some guidance.
Please get in touch if you have any questions, or if you would like to chat through the likelihood of your property receiving planning and licence approval. Our friendly, expert team are here to help.
We also know that many short-term let owners are considering whether a change to long-term letting might be appropriate for them and their property. We are experts in the Edinburgh rental market, and we will be happy to answer any questions you may have about how long-term property management works.
We can advise on the average long-term rental yields in your area and provide a free, no-obligation, property assessment service. This gives you a rental evaluation and an honest appraisal of your property’s potential, including expected long-term rental values. You can book this via the short form on our website.
Want a quick chat?
We really mean it – we are here to help. If you’d like a quick chat with one of the team, just give us a call on 0131 229 4001, email via our contact form, or pop in and see us at 39 Warrender Park Road, Edinburgh, EH9 1EU.