Short-Term Let Licensing in Edinburgh: What Landlords Need to Know

Edinburgh's short-term let (STL) licensing scheme has been one of the most significant changes to the city's property market in years. Whether you're a landlord currently operating an Airbnb, considering switching to long-term lets, or a tenant wondering what it means for rental supply — here's what you need to know.

What is the licensing scheme?

Since October 2022, anyone operating a short-term let in Edinburgh needs a licence from the City of Edinburgh Council. This applies to:

• Secondary letting: letting a property you don't live in (e.g. a buy-to-let Airbnb)
• Home letting: letting your own home while you're away
• Home sharing: letting a room in your home while you're there (e.g. spare room on Airbnb)

The rules are strictest for secondary letting. In Edinburgh's designated short-term let control area (which covers most of the city), secondary lets also need planning permission — a change of use from residential to short-term let. This is the rule that has had the biggest impact.

What does it cost?

Licence application fees depend on the number of bedrooms and type of let:

• Home sharing (1-2 bedrooms): approximately £200-400
• Secondary letting (1-2 bedrooms): approximately £400-600
• Larger properties: fees increase with bedroom count
• Planning application fee (for secondary lets): additional £400+

Licences last 3 years and must be renewed. The council can refuse, revoke, or attach conditions to licences.

Impact on Edinburgh's rental market

The licensing scheme has had a measurable, though modest, impact on the long-term rental market:

• Some landlords have switched from Airbnb to long-term lets, increasing supply slightly.
• Others have sold properties rather than apply for a licence, reducing overall rental stock.
• The net effect so far has been a small increase in long-term rental availability in central areas like the Old Town and New Town.
• Holiday let numbers in Edinburgh fell by an estimated 20-30% in the first two years of the scheme.

Should you switch to long-term letting?

If you're currently running a short-term let and considering switching to long-term, here are the key factors:

Advantages of long-term letting

• Guaranteed income: steady monthly rent vs seasonal Airbnb fluctuations.
• Lower costs: no cleaning, laundry, guest management, or platform fees (Airbnb takes 3-5%).
• No licensing hassle: standard private residential tenancies don't need an STL licence.
• Less wear and tear: long-term tenants generally look after properties better than short-stay guests.
• Simpler tax: rental income is straightforward; no need to navigate the furnished holiday let tax rules (which are being removed anyway).

Things to consider

• Lower headline yield: Airbnb rates can be higher per night, but occupancy is rarely 100%.
• PRT obligations: under Scottish law, long-term tenants have strong protections. You can't easily end a tenancy — you need specific eviction grounds.
• Deposit protection: you must protect the deposit in an approved scheme.
• Landlord registration: you must register as a landlord with the City of Edinburgh Council.

Landlord registration

If you're letting a property long-term in Edinburgh, you must register as a landlord with the City of Edinburgh Council. This is a legal requirement under the Antisocial Behaviour etc. (Scotland) Act 2004. Key points:

• Registration costs approximately £65 for the first property, plus £15 per additional property.
• Registration lasts 3 years.
• You must pass a "fit and proper person" test.
• Letting an unregistered property is a criminal offence with potential fines of up to £50,000.
• Register online at landlordregistrationscotland.gov.uk.

The bigger picture

Edinburgh's approach to short-term lets is part of a broader trend across Scottish cities and European tourist destinations. Barcelona, Amsterdam, and Paris have all implemented similar restrictions. The aim is to balance tourism income with the housing needs of local residents.

For landlords, the message is clear: long-term letting in Edinburgh is becoming more attractive relative to short-term, both financially and administratively. And for tenants, the gradual return of properties to the long-term market is welcome news in a city that desperately needs more rental housing.

If you're a landlord considering listing a long-term let, list your property on Rent in Edinburgh for free. If you're a tenant, search available properties now.