Landlords must apply for licences to run short-term lets following national legislation passed by MSPs in 2022. Those who fail to comply with the regulations face a fine of £2,500.
In Edinburgh, new operators must apply for planning permission before applying for the licence.
For properties that have been used as a short-term let for more than 10 years, a certificate of lawfulness is required instead of planning permission.
Gilson Gray’s FOI showed the success rate for these properties was much higher at 75%, compared to just 10% for those who needed planning permission first.
But the law firm said that because Edinburgh is also a short-term let control area, properties operating such businesses that are not within someone’s principal home are also required to get planning permission.
READ MORE
Karen Gatherum, solicitor and licensing specialist at Gilson Gray, said: “The number of rejected planning applications for short-term lets lays bare the disconnection between the licensing and planning processes because of the way the legislation has been written.
“Securing a licence was made out to be the difficult part of the process for short-term lets operators and received most attention but planning has turned out to be the issue – 90% of the planning applications made have been rejected.”
Ms Gatherum said the rules mean those wishing to buy a property to let out on a short-term basis “may want to seriously reconsider”.
She added: “It is taking up to nine months to determine licences and up to six months for planning – during which time you’ll be unable to operate and, in all likelihood, you will be rejected on one side of the process. It’s a system that has been set up to fail.”
The cost for submitting planning permission is usually about £600 per 100 metres square of floorspace, although it depends on the local authority. Landlords may also be required to apply for other certificates.
Gilson Gray said one Edinburgh landlord, who rents his home while he is abroad on business, was served with a planning enforcement notice despite the property being his primary residence.
The man, who wanted to remain anonymous, said: “I’ve been letting my flat out since June 2022 for the periods while I’m away on business or returning home, with no issues before the introduction of the new system.
“When it came into effect, I applied for and was granted a home letting licence from February 2024 to continue operating on that basis.
“However, at the beginning of May 2024 – less than 80 days after receiving my licence – I was served with an enforcement notice by the council requiring me to cease all short-term letting activities by May 30, because I need planning permission to operate.”
The man said that he appealed the council’s decision but was unsuccessful.
He said: “Have spent a lot of money trying to make this work, but it feels like it is a long and deliberately complex process designed to make you give up.”
Karen Gatherum added: “These cases should not require planning permission, as there is no material change of use – but many of them are being served with an enforcement notice.
“There needs to be clearer communication and consistency about the process, who it affects, and in what way.”
