Scotland’s short term let licensing system is still relatively new, but it has already gone through several rounds of changes since it was first introduced in 2022. Over the past year councils and the Scottish Government have made further adjustments, and in recent months some high profile proposals and exemptions have added to the mix.
For hosts, it can feel like the rules keep shifting. This guide brings together the latest updates. You will find what is already in force, what is under consultation, and what could be coming soon so you know exactly where you stand.
All short term let operators in Scotland need a licence under the Civic Government (Scotland) Act 1982 (Licensing of Short term Lets) Regulations.
The original scheme, launched in 2022, required anyone letting out a property for short stays to apply for a licence from their local council. This included:
Primary letting (renting out your own home)
Secondary letting (renting out another property you own)
Home sharing and home letting (spare rooms or partial lets)
The scheme has always included safety checks, planning considerations, and fees set by councils. But pressure from hosts, festival organisers, and housing campaigners has led to refinements.
The Scottish Government introduced the Licensing of Short term Lets Amendment Order 2024. The most important changes were:
Licence transfers, which allow a licence to move with a property if it is sold or inherited
Provisional licences for developers before completing a new property
Up to three temporary exemptions a year, covering no more than six weeks in total
Clearer rules on what is excluded, such as guest rooms, foster care, and assisted living
A requirement to display information on carbon monoxide alarms
These adjustments made the system more flexible, particularly for seasonal lets and new developments. But they did not resolve the wide variation in how different councils interpret and apply the rules.
In June 2025, Highland councillors proposed a short term let control zone across the entire Highland region.
A control zone means that anyone letting out a property would need planning permission as well as a licence. Councils can use them where holiday lets are seen to reduce housing supply for local residents.
The Highlands already has a zone in Badenoch and Strathspey. Councillors argue that shortages of affordable homes exist across the region, from Inverness to the islands. Expanding the control zone would, in theory, release more homes for local families.
As of September 2025 this proposal has not yet been approved. Consultations and further steps are required before it becomes law.
If the plan goes ahead hosts may face:
Retrospective planning applications for existing short term lets
Higher entry barriers for new operators
Additional costs and professional planning fees
For hosts in the Highlands, preparation is key. Nothing has changed yet, but it is important to watch closely.
While the Highlands looks at tougher restrictions, Edinburgh has recently chosen a different path.
In February 2025, the council relaxed parts of its licensing system to ease the shortage of beds during the Edinburgh Festival Fringe and other major events.
Safety checks such as gas, fire, electrical, and legionella inspections were waived for festival lets
Home sharing application fees were cut to £120, down from £250 to £600
The aim was to make sure performers, staff, and visitors could still find affordable places to stay during the busiest month of the year.
These changes are temporary and apply only to festival periods. Edinburgh remains one of the strictest councils, especially for secondary letting of full flats or houses.
However, the council has consulted on extending licence renewals for secondary letting from one year to three years. If adopted this would reduce paperwork and costs for operators.
Several other developments are worth noting:
Fife Council and others have updated guidance to reflect the August 2024 amendments
Parliament’s Housing Committee has raised concerns about consistency and fairness across councils
Glasgow and other large cities are reviewing fee structures and safety standards, often applying rules differently from each other
The reality is that there is no single uniform set of rules. The framework is national, but the detail is always decided locally.
Even with the changes still being debated, there are clear steps to take today:
Check your council’s current position, since local details vary widely
Watch for decisions on the Highland control zone if you operate there
Make use of exemptions where seasonal or festival letting applies
Track your renewal dates and take advantage if councils move to three year terms
Keep your safety standards high regardless of temporary waivers
The licensing system in Scotland is evolving fast. Some councils are tightening rules to protect housing while others are easing them to support tourism.
For hosts this patchwork is confusing. But it also makes compliance management more valuable than ever.
At BreezyHost we make it simple. You can track your local council’s rules, store documents with renewal reminders, and understand exemptions without stress. Regulation will not disappear, but with the right tools you can stay ahead and keep your business running smoothly.