In Scotland you must hold a short-term let licence from your local council before taking a single booking. Operating without one is a criminal offence, with a fine of up to £2,500 (level 4 on the standard scale, Civic Government (Scotland) Act 1982, s.7). In certain prosecution or licence-revocation cases, the court may also ban you from reapplying for up to one year. Edinburgh hosts may additionally need planning permission.
Scotland's licensing scheme covers all short-term lets: B&Bs, guest houses, self-catering cottages, and rooms let in your own home. Both new hosts and existing hosts need a licence. There are two licence types: a licence for secondary letting (a property that is not your home) and a licence for home sharing or home letting (letting all or part of your own home).
| Item | Detail |
|---|---|
| Licence required | Before taking any booking |
| Issued by | Your local council |
| Fine for operating unlicensed | Up to £2,500 (criminal offence) |
| Possible reapplication ban | Up to 1 year, in certain court cases |
| Edinburgh | Planning permission may also be needed |
Application fees vary by council and property type, so check your council's website for the current fee. Processing can take several weeks, so apply well before you plan to welcome guests.
Operating a short-term let without a licence is a criminal offence in Scotland. On conviction, the fine can be up to £2,500. In certain prosecution or licence-revocation cases, the court may also disqualify you from holding a licence for up to one year. This is not automatic for every breach, but the risk is real and the record is criminal, not civil.
In Edinburgh, the whole city is a short-term let control area. On top of the licence, secondary letting in Edinburgh generally needs planning permission for a change of use. This is a separate application to the council's planning department, with its own timeline and fee. If your property is in Edinburgh, budget for both processes.
Licensed hosts should display their licence number wherever guests book. Every B&B website we build includes a visible licence or registration number field, so your Scottish licence number sits on your homepage and booking page. It reassures guests and shows platforms and councils you are operating properly.
Yes. Scotland's licensing scheme covers all short-term lets, including B&Bs, guest houses, self-catering cottages and rooms let in your own home, and you must hold the licence before taking a single booking. There are two licence types: secondary letting (a property that is not your home) and home sharing or home letting (letting all or part of your own home) (Scottish Government, short-term lets overview).
Apply to your local council's licensing team. Each of Scotland's 32 councils runs its own application process. If you are unsure whether you need a licence or which type fits your property, use the short-term lets checker tool on mygov.scot (Scottish Government, licensing scheme guidance part 1).
Licence fees are set by each local licensing authority, not by the Scottish Government, and are calculated on a cost-recovery basis, so fees can differ between council areas even for a similar property. Check your own council's website for the current fee before applying (Scottish Government, licensing scheme guidance part 1, section 3).
The mandatory conditions include fire safety (a fire risk assessment, working smoke and carbon monoxide alarms, and furnishings that meet fire safety regulations), an annual gas safety check by a Gas Safe registered engineer, an electrical safety inspection at least every five years with an Electrical Installation Condition Report and portable appliance testing, a Legionella risk assessment (which you may carry out yourself), meeting the repairing standard, a valid Energy Performance Certificate issued within the last 10 years, and buildings insurance plus public liability insurance (Scottish Government, licensing scheme guidance part 1, section 2).
Operating a short-term let without a licence is a criminal offence, punishable on conviction by a fine of up to £2,500. In certain prosecution or licence-revocation cases, the court may also disqualify you from holding a licence for up to one year.
Some councils offer temporary exemptions. You can apply for up to three exemptions per calendar year, not exceeding six weeks in total, often using a shorter form and paying a lower fee. Whether temporary exemptions are available depends on your council's published policy, so check its website first (Scottish Government, licensing scheme guidance part 1, section 1).
Yes. Letting a room in your own home falls under the home sharing or home letting licence type, and the same mandatory safety conditions apply (Scottish Government, short-term lets overview).
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Official source: Scottish Government, short-term lets. Checked October 2026. This page is guidance, not legal advice. Licensing fees and processes vary by council, always confirm with your local council before acting.