There is a great deal of confusion surrounding short-term lets in Scotland. This stems from the fact that planning permission itself is not a new requirement. Planning permission has always been needed where a material change of use has occurred. However, the introduction of licensing, the creation of Short-Term Let Control Areas and increased scrutiny by planning authorities have brought the issue into much sharper focus. As a result, many operators who have been trading for years since 2022 have been asked to demonstrate that their use is lawful. This has led some to pursue Certificates of Lawfulness as an alternative to planning applications, often without appreciating that a CLU is not simply another route to permission but an evidential exercise requiring robust proof of long-established use. Consequently, there is widespread misunderstanding about when planning permission is required, when a CLU may be appropriate and how these requirements interact with the licensing regime.

The Position Before Airbnb

Before the growth of online platforms such as Airbnb, short-term holiday accommodation was relatively uncommon and generally consisted of traditional holiday cottages or guest houses. There was no special planning regime for short-term lets and no licensing system.

Planning permission was only required if there had been a material change of use, a concept that has existed in planning law for decades. Whether such a change had occurred depended on the individual circumstances of each case.

In many instances, holiday accommodation operated without issue and planning authorities rarely became involved.

The Growth of Short-Term Letting

During the 2010s, the rapid expansion of Airbnb and similar platforms transformed the market. In some areas, particularly Edinburgh, increasing numbers of flats and houses were removed from the long-term housing market and used exclusively for visitor accommodation.

Concerns were raised over:

Loss of housing supply.
Rising rents and house prices.
Noise and disturbance within residential buildings.
Waste management and anti-social behaviour.
The effect on the character and amenity of established communities.

These concerns led to calls for greater regulation.

Scottish Government Consultation

Between 2019 and 2020, the Scottish Government consulted on introducing measures to regulate short-term lets. The outcome was a two-part approach:

A mandatory licensing scheme.
New planning powers allowing councils to designate Short-Term Let Control Areas.

The intention was not to ban short-term letting but to provide local authorities with tools to manage concentrations where they were causing problems.

2021 – New Planning Powers

In April 2021, the Town and Country Planning (Short-term Let Control Areas) (Scotland) Regulations came into force.

These regulations introduced powers enabling planning authorities to designate Short-Term Let Control Areas. Importantly, they did not create a new use class for short-term lets.

Outside control areas, the question remained exactly as it had before:

Has there been a material change of use?

Within control areas, however, the conversion of a dwellinghouse to a secondary short-term let would automatically be regarded as a material change of use requiring planning permission.

Edinburgh Leads the Way

On 5 September 2022, the City of Edinburgh became Scotland’s first Short-Term Let Control Area.

From that date, new secondary lets within the city required planning permission automatically. This removed arguments over whether the change was material and provided a clear planning framework.

In March 2024, Badenoch and Strathspey within the Highland Council area became Scotland’s second control area.

Despite speculation elsewhere, these remain the only designated control areas in Scotland.

Licensing Arrives

Alongside the planning changes, the Licensing of Short-Term Lets Order 2022 introduced a mandatory licensing regime.

From October 2022:

New operators required a licence before taking bookings.
Existing operators had until October 2023 to apply.

Planning and licensing became closely linked. A licence does not remove the need for planning permission, and planning permission does not remove the need for a licence.

Further Considerations : Planning Permission or Certificate of Lawfulness?

One area causing considerable confusion is the distinction between a planning application and a Certificate of Lawfulness (CLU).

Some operators who have been trading for many years seek a CLU rather than submitting a planning application.

However, the two routes are fundamentally different.

Planning Permission

A planning application asks:

Is the proposed change of use acceptable?

The authority exercises planning judgement and balances the relevant policies and material considerations.

Certificate of Lawfulness

A CLU asks:

Has this use already become lawful?

It is not a discretionary process. The applicant must prove, on the balance of probabilities, that the use has existed continuously and lawfully for the relevant period.

Evidence may include:

Booking records.
Tax returns.
Bank statements.
Insurance policies.
Guest reviews.
Utility bills.
Affidavits and statutory declarations.

The burden of proof lies entirely with the applicant, and many applications fail because the evidence is insufficient rather than because the use itself is unacceptable.

The Position Today

Contrary to popular belief, planning permission for short-term lets is not a new concept. Planning permission has always been required where there has been a material change of use.

What has changed since 2021 is:

Greater visibility through licensing.
The creation of control areas.
Increased scrutiny by planning authorities.
Growing awareness of the impact of short-term letting on housing supply and residential amenity.

For many operators without a lengthy history of use, submitting a full planning application is often the simpler and more straightforward route.

The Certificate of Lawfulness route is available, but it should not be viewed as an easier alternative. It is, fundamentally, an exercise in proving that permission is no longer required rather than asking for permission to be granted.

As with much of planning law, the answer to whether planning permission is required remains:

“It depends on the facts and circumstances of the individual case.”

Understanding the distinction between planning permission, lawfulness and licensing is therefore essential for anyone operating, or proposing to operate, a short-term let in Scotland.

1. The starting point

There are two separate requirements in Scotland:

A Short-Term Let Licence (mandatory throughout Scotland).
Planning permission, where required.

Having a licence does not mean planning permission is unnecessary, and vice versa.

Full Planning Permission vs Certificate of Lawfulness

There are essentially three situations.

A. New short-term let use

If you are converting a dwelling into a dedicated short-term let (secondary letting), many authorities will regard this as a material change of use and require a full planning application.

This is automatic within a designated Short-Term Let Control Area and may also apply outside control areas depending on the facts.

B. Existing use established over time

If the property has already been operating as a short-term let for a long period, it may already have become lawful through the passage of time.

In Scotland, immunity from enforcement generally arises after 10 years. Therefore, a Certificate of Lawfulness (CLU/CLUD) application requires evidence that the use has been continuous and lawful for that period. A CLU is not discretionary—the authority is determining a question of fact rather than planning merits.

Typical evidence

The burden of proof lies with the applicant and is much higher than for planning permission. Evidence might include:

Airbnb and Booking.com records.
Tax returns and accounts.
Bank statements.
Utility bills.
Guest reviews.
Insurance documents.
Management agreements.
Council tax records.
Sworn affidavits or statutory declarations.

The test is generally the balance of probabilities, but the evidence must be clear and convincing.

C. Hosted accommodation

Where the property remains the host’s principal home and rooms are let out, or the whole house is occasionally let while the host is absent, planning permission is often unnecessary because there may be no material change of use.

Control Areas

Currently there are only two designated Short-Term Let Control Areas:

City of Edinburgh (entire council area).
Badenoch and Strathspey within the Highland area.

Inside a control area, any change from a dwellinghouse to a secondary let after designation is automatically deemed a material change of use and therefore requires planning permission.

Why many operators are trying the CLU route

Some operators have been running holiday lets for years. They hope to avoid the uncertainty of a planning application by proving the use is already lawful.

However, this route is often misunderstood.

A CLU application is harder, because:

The burden of proof lies entirely with the applicant.
Lack of evidence means refusal.
The authority cannot “exercise discretion” to help the applicant.
A partial or intermittent history may not be enough.

By contrast, a planning application only needs to demonstrate that the proposal is acceptable in planning terms.

In practice

If the use began recently

→ Full planning permission is usually the appropriate route.

If the use has existed continuously for over 10 years

→ A Certificate of Lawfulness may be possible.

If the property is the host’s main residence and only occasionally let

→ Planning permission may not be required, but written confirmation from the planning authority is advisable.

A point that is frequently misunderstood

A Certificate of Lawfulness is not simply an alternative to planning permission. It is an evidential exercise. You are effectively saying:

“I am not asking for permission. I am proving that permission is no longer required because the use has already become lawful.”

That is why many applications fail—not because the use itself is unacceptable, but because the evidence does not sufficiently demonstrate ten years of continuous short-term letting.

From a development management perspective, where an applicant cannot demonstrate a clear ten-year history, the safer and often simpler route is usually to submit a full planning application for change of use to short-term letting, rather than attempting to establish lawfulness retrospectively.