City of Edinburgh

The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 was passed on 19 January 2022, creating the legal framework for a mandatory licensing scheme across all of Scotland. Edinburgh Council began preparing its local licensing policy.

Edinburgh launched its first public consultation on the local STL licensing scheme, inviting views from operators, residents, and industry stakeholders. The council's approach was notably stricter than most other Scottish authorities from the outset.

On 5 September 2022, Edinburgh became the first — and to date only — city in Scotland to confirm a whole-city Short-Term Let Control Area under Section 26B of the Town and Country Planning (Scotland) Act 1997. This meant ALL secondary lets in Edinburgh automatically required planning permission — a deemed material change of use.

The STL licensing scheme launched on 1 October 2022. New hosts could no longer take bookings without a licence. Existing hosts were given until 1 October 2023 to apply. Edinburgh set licence fees significantly higher than most other Scottish councils, particularly for secondary lets.

Lord Braid published his decision on the Judicial Review brought by Peter Ralph Averbuch and others against Edinburgh Council's STL licensing policy. The court found elements of the council's local policy to be unlawful. The Council was required to revise its policy. This was the first of multiple successful legal challenges — a significant blow to the council's approach.

All existing STL operators required to have submitted licence applications by 1 October 2023. Edinburgh received thousands of applications, creating significant processing backlogs. Operators who missed the deadline could no longer trade legally. By 31 December 2023, nationally, nearly half (7,260) of 14,539 validated applications had been determined.

Muirhead [2023] CSOH 86 — the second major legal victory against Edinburgh. The court established that STL uses pre-dating the STLCA confirmation (before September 2022) do not automatically trigger Section 26B. Operators with established uses could argue they didn't require planning permission solely because of the control area. This was a landmark ruling that protected many existing operators.

Lord Braid published his decision in a second Judicial Review, brought by Iain Muirhead and Louise Dickins (Dickins Edinburgh Ltd), challenging Edinburgh Council's STL planning Guidance for Business. The court ruled in the applicants' favour — the council's approach to planning permission requirements was found to be 'unfair and illogical'. The ASSC documented this as one of three successful legal challenges against Edinburgh.

The Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Amendment Order 2023 came into force on 31 March 2023, adjusting various provisions of the licensing scheme based on early implementation experience.

A further amendment — the 2024 Order — came into force on 30 August 2024, making additional changes to the licensing scheme. Edinburgh updated its local policy accordingly.

Analysis by a full-service law firm revealed that 566 of 632 planning applications (90%) submitted for STL use since October 2022 had been refused. Only commercial-to-STL conversions had meaningful success rates. The Edinburgh Chamber of Commerce and Scottish Housing News reported the finding, highlighting the near-impossibility of obtaining planning permission for residential-to-STL conversions.

In a report to the Regulatory Committee (31 January 2025), Edinburgh Council admitted there had been a 'relatively low number of complaints received in respect of secondary lets' — undermining one of the key justifications for the restrictive licensing and planning regime.

Analysis of Edinburgh's 2025 planning decisions confirmed the pattern: office/commercial-to-STL conversions at South Charlotte Street, Rutland Square, Frederick Street, and Spittal Street were granted. Residential flat conversions at Lindsay Road, Calder View, Rossie Place, Pitt Street, Princes Street, Queen Street, Learmonth Crescent, and Fountainhall Road were refused. The property's existing use class proved decisive.

Edinburgh residents described approved STL flats as 'vile' and 'appalling'. Multiple articles in the Edinburgh Reporter, Deadline News, and Edinburgh Live highlighted tensions. The New Town 'super hostel' bid drew particular opposition. Residents at one development vowed they 'won't back down'.

Edinburgh's Regulatory Committee extended secondary let licence renewals from 1 year to 3 years (19 May 2025), bringing them in line with home-letting and home-sharing. This followed sustained advocacy by STL Solutions and the wider sector. Following representations, existing applicants were offered the option to upgrade by paying an additional £400.

New fee scales introduced by the Town and Country Planning (Fees for Applications) (Scotland) Amendment Regulations 2025 on 9 June 2025, resulting in further increases to planning fees. For the first time, fees were also introduced for planning appeals and local reviews — adding cost to an already expensive process.

Cases ENA-230-2327 and CLUD-230-2044 denied lawfulness of STL uses in houses without reference to the Use Classes Order (Class 9), despite historical DPEA decisions (Pirniefield Grove CLUD-230-2003, Restalrig Road CLUD-230-2006, Spring Gardens ENA-230-2217) all supporting UCO applicability. More recent 2025 DPEA decisions continued to note the 'definitive applicability' of the UCO — creating direct contradiction between different reporters' approaches.

Edinburgh business community fought a Leith planning bid for STL conversions. Business owners feared holiday lets would 'devastate unique vibrancy'. Separately, the Edinburgh Reporter and residents groups documented ongoing tensions around approved STL flats in multiple neighbourhoods.

An amended visitor levy bill was debated in committee. Edinburgh confirmed its 5% visitor levy, with discussions around how revenue should be used — including Leith Links regeneration. The Cockburn Association published analysis of what the tourist tax means for the city.

Edinburgh becomes the first city in the UK to introduce a visitor levy — 5% on all overnight accommodation from 24 July 2026. STL operators must collect the levy from guests and remit to the council. The levy adds new bookkeeping and compliance obligations. Non-compliance carries penalties. Perth & Kinross, Falkirk, and Glasgow are all considering following Edinburgh's lead.