Scotland short-term let licence: what hosts must know

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.

Licence first, bookings second. You cannot legally take bookings until your council licence is granted. Operating without one is a criminal offence with a fine of up to £2,500.

Who needs a licence

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).

Key facts at a glance

ItemDetail
Licence requiredBefore taking any booking
Issued byYour local council
Fine for operating unlicensedUp to £2,500 (criminal offence)
Possible reapplication banUp to 1 year, in certain court cases
EdinburghPlanning permission may also be needed

How to apply

  1. Contact your local council. Each of Scotland's 32 councils runs its own licensing process with its own fees.
  2. Prepare your documents. Councils typically ask for gas and electrical safety certificates, fire risk assessment, floor plans and proof of building insurance.
  3. Meet the mandatory conditions. These include safety standards, maximum occupancy limits and guest information requirements.
  4. Display your licence number. Once granted, your licence number should appear on all listings and your own website.

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.

Penalties for operating without a licence

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.

Edinburgh: the extra planning layer

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.

Show your licence number on your website

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.

Frequently asked questions

Do I need a licence to run a B&B in Scotland?

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).

How do I apply for a short-term let licence?

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).

How much does the licence cost?

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).

What safety requirements must my property meet?

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).

What happens if I operate without a licence?

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.

Are there any exemptions from the licensing requirement?

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).

I only let a room in my own home. Do I still need a licence?

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.