Holiday let
Selling a holiday let in Scotland
Licence status is the first thing a buyer will ask about.
The short answer
Short-term lets in Scotland require a licence from the local authority, and some areas — including parts of Edinburgh — are designated short-term let control areas where planning permission is also needed for change of use. A licence is granted to a person for premises and is not simply handed over with the keys, so a buyer intending to continue letting normally needs their own application. That, more than the property itself, shapes who will buy and at what price.
What this means
Two separate regimes apply: licensing, which applies across Scotland, and planning, which bites in designated control areas.
Edinburgh operates a control area, so the planning history of the specific property matters a great deal to a buyer's business case.
Buyers fall into two groups: operators who want the letting business to continue, and ordinary residential purchasers who do not care about the licence at all.
Your possible options
These are possibilities to consider, not recommendations. Which of them fits depends on your own circumstances.
Sell to an operator with the paperwork in order
Licence documentation, planning position, safety certificates and trading records make an operator sale straightforward.
Specialist advice: A solicitor should confirm what can and cannot transfer.
Sell as an ordinary residential property
Often the larger market, particularly for city-centre flats. The licence becomes irrelevant to the buyer.
Return it to long-term letting first
A tenanted investment sale may suit if the short-term business is no longer viable.
Specialist advice: Private residential tenancy rules then apply.
Wind the business down before marketing
Clear bookings, settle obligations to guests and platforms, and present the property as a home.
Specialist advice: Check tax consequences of ceasing the business with an adviser.
What should I do first?
- Confirm the licence status and expiry with the local authority.
- Establish whether the property sits in a short-term let control area.
- Check the planning position for change of use, if one was ever obtained.
- Collect safety certificates, insurance and trading records for buyers.
- Get a view on value as a business and as an ordinary home — they differ.
- Take tax advice on ceasing the letting business before you sell.
You may need specialist advice
Lothian Property publishes property information. It is not a law firm, lender, financial adviser or estate agent, and the professionals below are independent of us.
- Letting professional
- Tenancy law in Scotland is specific. A registered letting agent can explain obligations to tenants.
- Scottish solicitor
- Scots property law differs from England and Wales. A solicitor regulated by the Law Society of Scotland can advise on your specific position.
- Tax adviser or accountant
- Capital gains, inheritance tax and Additional Dwelling Supplement depend on your own circumstances.
- Conveyancing solicitor
- In Scotland a solicitor normally handles missives, title and settlement, and often the marketing too.
What to do next
Understand your property position first
Tell us about the property and what has changed. We will set out what the information says, with no obligation to sell and no pressure to decide anything today.
Common questions
- Can I transfer my short-term let licence to the buyer?
- Licences are granted for premises to a specific person and are not freely transferable. A buyer intending to keep letting normally applies in their own name; the council confirms the process.
- What is a short-term let control area?
- A designated area where using a whole dwelling for short-term lets requires planning permission for change of use. Edinburgh operates one; check with the council for the specific address.
- Is a holiday let worth more than an ordinary flat?
- Not automatically. Value depends on the local market and whether the letting use can continue for the buyer. Both figures are worth establishing before choosing a marketing approach.
Sources
- mygov.scot — housing and local services — government
- Scottish Government — buying and selling a home — government
- Law Society of Scotland — find a solicitor — professional body
- Citizens Advice Scotland — charity
Related situations and guides
About Lothian Property
An independent starting point, not an estate agency
Lothian Property is an independent property information and introduction service. We are not an estate agency. We help homeowners understand their property, their options and their local market, and — where appropriate and only with your permission — introduce them to independent estate agents and other property professionals who can assist.
How Lothian Property worksPrepared by Lothian Property. Information last reviewed 2026-09-04; next review due 2027-03-04. General property information for Scotland, not legal, tax or financial advice. Editorial policy.