Edinburgh

Guide to Edinburgh’s Short-Term Rental Regulations

It’s no wonder Edinburgh keeps topping everyone’s lists of places to go. Scotland’s capital city has breathing landscapes, deep historical roots, and an unmatched cultural scene. Edinburgh is a great investment opportunity for short-term rental (STR) operators. All you have to do is make sure you follow local laws and maintain reasonable standards. That’s why we’re diving into the city’s STR regulations including the new licensing scheme and its eligibility criteria. Disclaimer: Our guide is intended for informational purposes only and doesn’t constitute legal advice. For guidance on specific cases, please consult a property lawyer. 

What does Edinburgh consider to be a short-term let?

Scotland loosely defines a short-term let as a residential property you lease to guests for temporary periods. It can be a portion of your home or the entire premises. The law doesn’t say how long guests can stay at one time. In the UK, a host might accept bookings for anywhere from a single night to several months. However, you automatically count as a short-term let if your property is available to let for 28 days or more. You don’t count as a STR in Edinburgh if your guests are:

• Immediate family members
• Participants in an educational program you arranged
• Owners or part-owners in the property

The definition also doesn’t include many other types of paid lodgings such as hotels, hostels, and student accommodation.

STR control areas in Edinburgh

Edinburgh Council has designated the whole city a ‘short-term let control area’. That means you must obtain planning permission before you can lease a secondary residence to guests. The city is one of only two regions in Scotland to enforce this law. You can check the council map if you’re unsure whether your property falls within the city limits. Note that even if you’re outside Edinburgh’s administrative area, you may still need planning permission. It’s always best to double-check with your local council. If you’ve already been using a property as a short-term let, you may be able to apply for an exemption. The council calls this a ‘certification of lawfulness’. However, the eligibility criteria are very limiting — you must prove that the short-term let has been operating for over 10 years without interruption.

STR licensing in Edinburgh

In October 2022, the Scottish government introduced a new licensing scheme. Now you have to apply for the right paperwork before you can list your STR or accept guests. The scheme applies to any kind of short-term accommodation in Scotland. To give you an idea of the scope, here are the examples the government lists:

• Holiday cottages
• Bed & Breakfasts
• Guest houses
• Single rooms
• Unconventional lodging like yurts

Paying the STR license fees

The licensing fees in Edinburgh depend on whether it’s your primary or secondary residence. If you’re letting or sharing your own home, the annual license fee is £120 per occupant. That means if you can take up to five guests, you’d pay £600 altogether. The licensing fees are higher for those using a secondary residence. The total is based on the maximum number of guests you can accept at any time. Here’s a breakdown of the costs that Edinburgh Council set in 2024:

Maximum Number of Guests	Fee
1-3	£653
4-5	£1089
6-10	£2481
11-15	£3872
16-20	£5264
21 and over	£5869

There’s also the option to apply for a temporary license at a lower cost. If you just want to let your property for six weeks over the summer vacation, this may be a better option for you.

Applying for a STR license in Edinburgh

It’s best to apply for an STR license in advance. The council can take up to nine months to process applications and reach a verdict. You can download the short-term let application form from the Edinburgh Council website. Note that it’s not digital so you’ll have to print the form, complete it by hand, and scan it afterward. You should send the form back to the council alongside the following documents:

• A floor layout plan
• An electrical installation report
• An annual portable appliance test certificate
• A gas certificate (if applicable)
• Planning permission (if applicable)

As part of the application, you must sign a declaration confirming that you can present proof of insurance and an energy performance certificate on request. While you’re waiting for the council’s response, you must display a notice on your property for at least 21 days. You can download this from the council website. You have to put the notice somewhere passers-by can easily read it like a ground-floor window or a fence.

Maintaining compliance with Edinburgh’s STR regulations

STR operators have to follow certain rules and meet set standards or Edinburgh City Council may revoke their license. Here’s an overview of the main ones:

• You mustn’t exceed the guest occupancy limit stated on your license.
• Properties should display a copy of the license, the electricity and gas certificates, and the contact details for the emergency services.
• Any listings must include the property’s license number and energy performance rating. The amenities and services you advertise must be consistent with what’s actually available at the accommodation.
• You must ensure you have continuous building and liability insurance for the duration of the license.

As the owner or manager, you’re also responsible for your guests’ behavior. The council may give you a penalty if they’re disturbing nearby residents or causing damage to the surrounding area. However, they’ll attempt to resolve the situation with you first.

Tax Requirements for STRs in Edinburgh

Edinburgh doesn’t apply any special rates to STR operators. You just have to pay standard income tax, capital gains tax, and VAT like the rest of the UK. You must pay council tax if your property is either:

• Available to let for under 140 days in a year
• Let for less than 70 days in a year

That’s the case no matter whether you have a license or pay council tax elsewhere. You’re only exempt if you get long-term tenants. Everyone else has to pay business rates (also known as non-domestic rates). If you manage properties across the UK, note that the system for calculating the amounts is different in Scotland and England. Unsure whether you should pay council tax or business rates? You can contact an assessor to make sure.

Upcoming changes to STR laws in the UK

The UK government is launching a nationwide STR licensing scheme in 2024. Applicants will also be required to get planning permission if they haven’t already done so. As the government is still developing the laws, some of the details are still unclear. For example, homeowners may still be able to rent out their properties for up to 90 days a year. The government has also indicated that existing STRs will automatically get planning permission. Edinburgh has already implemented similar laws so there may not be a big impact on STRs operating within the city. However, the Scottish government may adapt some of its policies to fit the UK legislation. If you’re setting up your business in late 2024, keep updated with both national and local regulations.

Resources

• Scottish Government, Definition of a short-term let
• Scottish Government, Planning Control Areas for short-term lets
• Edinburgh.gov, Applications for a certificate of lawful existing use or development
• Edinburgh.gov, City of Edinburgh Council Short Term Lets Licensing Policy
• Edinburgh.gov, Short-term let licence fees
• Scottish Government, Self-catering and holiday lets
• Scottish Government, Non-domestic rates (business rates)
• GOV.UK, Short-term lets rules to protect communities and keep homes available