Highland Council's short-term let licensing scheme has been running long enough to generate plenty of paperwork and a fair number of questions. Hosts want to know whether their spare room or holiday cottage is caught by it. Neighbours want to know what they can do about the flat that seems to change guests every weekend. Businesses want to know what it all means for the visitor economy they rely on. If you let accommodation in the Highlands for fewer than 28 days at a time, the chances are the rules apply to you. Here is how the scheme works in practice.
The short version
If you let residential accommodation for short periods, you generally need a licence from Highland Council. That covers self-catering cottages, flats, converted steadings, spare rooms and holiday caravans. It makes no difference whether you advertise on a large booking platform or take bookings by word of mouth, and no difference whether you let once a year or every fortnight.
Licences are issued to a named operator for a specific property and cannot simply be handed on, so a new owner or a new letting agency has to apply in their own name. New hosts should hold a licence before accepting a booking. Hosts who were already trading when the scheme came in were given a deadline to apply and were allowed to keep operating while a decision was pending.
Which licence do you need?
There are three categories, and the conditions attached to each differ:
- Home sharing — you let part of the home you live in, while you are there.
- Home letting — you let your own home, or part of it, while you are away from it, with limits on how much of the year that can cover. Check the current conditions rather than relying on what a friend was told.
- Secondary letting — the property is not your main home. This is the category that attracts the most scrutiny, and the one most likely to need planning permission.
Picking the wrong category is a common and entirely avoidable delay. If you are unsure, ask the licensing team before you submit anything.
What the council will expect of you
The detail lives in the national mandatory conditions plus any local conditions Highland Council adds, but the shape of it is fairly consistent:
- Gas safety — an annual check by a Gas Safe registered engineer, where the property has gas.
- Electrical safety — inspection of the fixed wiring by a qualified electrician, plus testing of portable appliances.
- Water systems — a legionella risk assessment and a simple routine for flushing and temperature checks.
- Fire and carbon monoxide — working smoke and heat alarms, a fire blanket, carbon monoxide alarms where there is a fuel-burning appliance, and clear information for guests about escape routes.
- Insurance — buildings and public liability cover that actually permits letting.
- Occupancy — the licence sets a maximum number of guests, and it is not a suggestion.
- A named contact — someone reachable by phone while guests are staying, able to deal with problems when they arise.
- Records and display — booking and guest records kept, and licence details available in the property.
Fees vary with the property and the number of guests, and they are payable on application and typically again when the licence is renewed. The council publishes a fee schedule, so check it before you budget. If you use a managing agent, remember that the licence holder remains responsible for compliance — you cannot contract out of the conditions.
What neighbours can do
If you live next to a short-term let and have concerns about noise, antisocial behaviour, bin chaos or safety, the licensing scheme gives you a formal route to raise them. You can object to a licence application or ask the council to review an existing licence. Objections must be relevant — for example, evidence of repeated disturbances, parking problems that block access, or a pattern of guests ignoring local rules. Personal dislike of tourism or a one-off party are unlikely to carry weight.
The first step is usually to contact the named contact for the property, whose details should be available to guests and often to neighbours. If that fails, keep a dated log of incidents, including times, dates and what happened. Then report it to the council's licensing team and, if it involves antisocial behaviour, to Police Scotland. The council can attach extra conditions, such as requiring a noise monitoring system or limiting occupancy, or in serious cases refuse or revoke a licence.
“We had a flat above us that changed hands every weekend,” says one Inverness resident. “Keeping a simple diary of the noise and the bins made all the difference when we finally spoke to the council. The owner was told to install a sound meter and provide a 24-hour contact number. It’s not perfect, but it’s much better.”
Planning permission: the separate hurdle
Holding a short-term let licence does not automatically mean you have planning permission. In many parts of the Highlands, especially in pressured housing areas like parts of Skye, Inverness and the Cairngorms National Park, changing a residential home to short-term letting use may require a change of use application. The council’s planning department looks at factors like loss of permanent housing, impact on neighbours and local housing need.
If you are a secondary letting host, check whether your property already has the right planning consent. If not, you may need to apply separately. This can add months to the process and involves its own fee. Some hosts have been caught out by assuming the licence was the only permission needed. If in doubt, speak to a planning consultant or the council’s duty planner before you invest in marketing your property.
Common pitfalls and how to avoid them
Even diligent hosts trip up on the same few issues. Here are the ones we hear about most:
- Wrong category. Applying for home sharing when you are actually away from the property for weeks at a time. Read the definitions carefully.
- Missing certificates. Booking a gas safety check too late, or forgetting that portable appliance testing is separate from the fixed wiring inspection.
- Vague guest information. Fire escape routes, bin days and the named contact’s phone number need to be obvious, not buried in a welcome folder.
- Ignoring occupancy limits. A sofa bed does not increase your licence limit. Overcrowding can lead to complaints and enforcement.
- Assuming renewal is automatic. Set a reminder well before your licence expires. Late renewals can mean you have to stop taking bookings.
A good application is mostly about preparation. Create a compliance folder — digital or paper — with every certificate, risk assessment and record. When renewal comes around, you will be glad you did.
What it means for the wider visitor economy
The Highlands rely heavily on tourism, and short-term lets provide essential accommodation in areas where hotels are few and far between. The licensing scheme is not designed to shut that down, but to make sure basic safety and neighbourly behaviour are built in. Many hosts report that the process, while fiddly, has professionalised their operation. Neighbours who once felt powerless now have a clear route to raise concerns. The balance is delicate, and it will keep evolving as the council reviews how the scheme works in practice. For now, the best approach for hosts is simple: understand your category, get the paperwork right, and keep the lines of communication open with those living nearby.
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