Are you ready for licensing of short-term letting?

The Sottish Government confirmed in January 2022, that all short-term let properties will require a licence “to ensure they are safe and the people providing them are suitable”.

The new legislation ends a disparity which allowed property used for holiday letting which would not otherwise meet the standard for long term letting. However, there are significant concerns about the burden it will place on local authorities who are required to establish a short-term lets licensing scheme by 1 October 2022, and also on existing hosts and operators who will then only have until 1 April 2023 to apply for a licence. All short-term let properties will require a licence by July 2024.

The cost of a licence will be confirmed by the local council but it is estimated that it will be in the range £214 and £436, and last three years.

Not withstanding that details are yet to come from Argyll and Bute, and Highland Councils, we already know that there will be mandatory conditions. It’s therefore critical that those in the industry begin to prepare immediately to ensure that they are ready to apply when the time comes (or indeed to bail out in time to avoid the costs and bureaucracy if that’s what they wish to do).

Those who operate short term letting should prepare now.

The mandatory conditions include a general requirement that the premises is safe for residential use, and there are various specific points in the guidelines, including the need for:

· a satisfactory way of detecting fires and for giving warning in the event of a fire or

suspected fire, accessible means of escape and furnishings which meet fire safety

standards

· (Note. A fire risk assessment should be undertaken, but is required under separate

legislation. It’s not been stated that a written document will be requested as part of

licensing)

· carbon monoxide alarm where there are carbon fuelled appliances

· an energy performance certificate (less than 10 years old)

· an annual gas safety inspection

· an electrical installation condition report (less than 5 years old)

· portable appliance testing

· current certification of any private water supply

· a legionella risk assessment (which can be completed yourself)

· valid buildings insurance

· valid public liability insurance of at least £5 million

If you would like help with completing a legionella risk assessment, Clarity Safety Solutions is ready to help. We also offer formal fire and general risk assessments, or more informal reviews of safety matters to help you to make your premises safe for guests.

Reference sources

Short-term lets legislation approved - gov.scot (www.gov.scot)

4. Getting ready to apply for a licence - Short term lets - licensing scheme part 1: guidance for hosts and operators - gov.scot (www.gov.scot)