Scotland received 38,040 short-term rental licence applications by June 2025

Updated 15 October 2026. After a source check by the standards desk, 1 sentence was removed because no source confirmed its specifics. Corrections log.

On October 28, 2025, the Scottish Government reported that local authorities in Scotland had received at least 38,040 applications for a short-term rental licence as of June 30, 2025. Out of these submissions, 36,594 were validated applications, representing the primary focus of the government’s statistical tracking. The figures highlighted the scale of the regulatory transition in Scotland’s short-term rental sector following the introduction of a national licensing scheme.

The data showed that the vast majority of applicants had successfully progressed through the licensing system, though regional differences in application rates and outstanding pending decisions remained across the country’s local authorities. The statistics provided a comprehensive overview of the capacity and composition of the short-term letting market across Scotland during this period of transition.

What the data shows

Of the 36,594 validated applications, the majority were concentrated in secondary letting, which refers to the letting of a non-primary residence. Specifically, secondary letting accounted for 28,012 validated applications, representing 77% of the total. Similar proportions were reported for licences that were actually granted by local authorities.

Other categories of short-term letting made up much smaller shares of the validated applications. Home sharing, where a host lets out a room or rooms in their primary residence while remaining on the property, accounted for 3,667 validated applications, or 10% of the total. Home letting, where a host lets out their entire primary residence while they are away, accounted for 2,969 validated applications, or 8% of the total. A mixture of home sharing and home letting accounted for 1,946 validated applications, representing 5% of the total.

The rate of short-term rental applications varied widely across different parts of Scotland. Across the entire country, there were 134 short-term rental applications per 10,000 dwellings. However, regional distribution was highly unequal. The highest concentration was found in the Highlands, which recorded 699 applications per 10,000 dwellings. In contrast, the lowest concentration was in East Renfrewshire, which recorded 10 applications per 10,000 dwellings.

By June 30, 2025, local authorities had processed a significant portion of the validated applications. Over 89% of all validated applications had been granted a licence, a figure that included licences that had subsequently lapsed or been superseded. Meanwhile, 6% of the validated applications were still pending determination by local authorities. A small minority of applications, representing 5% of the total, had been withdrawn, refused, or suspended.

In terms of active operations, there were 31,774 licences or exemptions in operation across Scotland as of June 30, 2025. Full licences and renewals made up the vast majority of these active permissions, accounting for over 97% of the total, or 30,730 licences. Provisional licences, which remained pending a final decision, accounted for 2% of the active permissions, or 591 licences. The remaining portion consisted of 453 temporary licences and exemptions.

The active licences and exemptions represented a substantial lodging capacity. According to the Scottish Government, the licences or exemptions in operation granted reported at least 85,483 bedrooms and a total maximum occupancy of 167,456 people.

How it was measured

The statistics were compiled and published by the Scottish Government, reflecting data collected from local authorities up to June 30, 2025. The primary focus of the publication was on validated short-term let applications. The Scottish Government explained that there are instances where local authorities do not possess the necessary information required to validate an application immediately. In these cases, local authorities work directly with the applicants to obtain the missing details.

Because of this ongoing process, the statistics presented in the publication were designated as provisional and subject to upward revision in future releases. The government noted that the scale of these revisions had reduced steadily in each subsequent statistical publication. Revisions were reported directly in the publication text and in the Revision Table of the supporting spreadsheet document.

What moved the numbers

The primary driver behind the volume of applications was the implementation of the new short-term let licensing scheme, which was introduced by the Scottish Government in October 2022. This regulatory framework established a strict timeline for compliance.

Under the rules of the scheme, both existing short-term let operators and new operators were required to apply for a licence before October 2023. This deadline created a concentrated period of application activity as operators sought to secure their legal right to continue or begin operating. The applications received and validated up to June 30, 2025, reflected the tail end of this major administrative transition, as local authorities worked through the backlog of submissions generated by the October 2023 deadline.

Who it affected

The licensing system directly affected short-term rental hosts, property managers, and real estate investors across Scotland. The heavy concentration of secondary letting applications—representing 77% of all validated submissions—showed that professional hosts and investors holding non-primary residential properties bore the brunt of the administrative and regulatory requirements.

The regional disparities in application rates meant that the impact of the regulations was felt unevenly. Hosts and property managers in the Highlands operated in a highly saturated regulatory environment, with 699 applications per 10,000 dwellings, meaning local authorities there had to process a massive volume of files. In contrast, operators in East Renfrewshire, with only 10 applications per 10,000 dwellings, faced a much smaller local regulatory footprint.

For the operators of the 6% of validated applications that were still pending determination as of June 30, 2025, the slow pace of local authority processing meant prolonged business uncertainty. Furthermore, the operators behind the 5% of applications that were withdrawn, refused, or suspended were either forced to halt operations or adjust their business models entirely.

What the data did not tell you

While the report provided a detailed census of applications and licences, it left several key operational and economic questions unanswered. First, the statistics did not reveal how many short-term rental properties existed in Scotland before the October 2022 licensing scheme was introduced. Consequently, the data did not show how many operators chose to exit the market entirely rather than apply for a licence.

Second, the report did not provide information on actual market activity. It listed 31,774 licences or exemptions in operation, representing a maximum occupancy of 167,456 people, but it did not state how many of these licensed properties were actively listed on platforms like Airbnb, Vrbo, or Booking.com, nor did it disclose their occupancy rates, average daily rates, or total revenues.

Third, the data did not break down the specific reasons why 5% of applications were withdrawn, refused, or suspended. It did not distinguish between applications that failed due to safety non-compliance, local planning policy objections, or voluntary withdrawal by the host. Fourth, the publication did not outline the average processing times for applications across different local authorities, leaving it unclear why 6% of validated applications remained pending more than a year and a half after the October 2023 application deadline for existing hosts.

What to take from it

The Scottish Government's licensing report offered several critical lessons for short-term rental operators and investors navigating regulated markets.

• Monitor local regulatory density by comparing application rates per dwelling in your target area, as high-density zones like the Highlands are far more likely to face strict local oversight and potential policy tightening than low-density zones.
• Factor administrative delays into your business planning, keeping in mind that a portion of applications remained pending long after the official submission deadlines.
• Anticipate that secondary letting will always attract the highest level of regulatory scrutiny and public policy focus, making compliance with safety and licensing standards a non-negotiable operational cost.
• Verify the status of provisional and temporary licences when acquiring or managing new properties, as these do not guarantee long-term operational rights.