More than 800 licensed short-term let properties are currently operating across Edinburgh despite having been refused planning permission, according to analysis released by housing campaigners. The figures reveal a significant gap between licensing and planning enforcement, with campaigners and council officials now calling for stronger action to close what they describe as a major loophole in Scottish law. According to BBC News, the discrepancy has sparked debate over whether the 2023 regulations introduced to manage short-term lets are fit for purpose.
Living Rent and Leith Harbour & Newhaven Community Council examined publicly available planning and licensing records as of 6 September this year. Their analysis found that of 1,754 entire homes or flats with valid short-term let licences in the city, 1,225 lacked planning permission—either because owners had not applied or their applications had been rejected. Within that group, 800 properties had received explicit planning refusals and had not successfully appealed those decisions. Despite lacking the required consent, these properties continue to advertise and operate through platforms such as Airbnb until their licences come up for renewal, typically between one and three years after issue.
How did this situation arise?
Edinburgh became Scotland's first short-term-let control area on 5 September 2022, introducing rules that require planning permission for most entire-home short-term lets unless the owner lives in the property regularly. According to the Scottish government, Highland's Badenoch and Strathspey Ward later followed on 4 March 2024. The licensing scheme itself, introduced in 2023, requires operators to hold a licence or face a ban and fines of up to £2,500. However, the licensing system and planning system operate independently, creating a situation where properties can be licensed without having planning permission in place.
Campaigners have identified a pattern they say amounts to gaming the system. Living Rent's analysis shows that 465 of the licensed full-property short-term lets have withdrawn a planning application at least once, with 110 having withdrawn multiple applications. The pattern suggests some owners submit planning applications while seeking their licence, then withdraw the planning application once the licence is secured, allowing them to continue operating without planning consent.
The council's licensing scheme does not regulate the total number of short-term lets or determine planning matters; according to Edinburgh Council's statement of reasons, the control area is intended to manage concentrations of secondary letting and protect residential use. However, a planning application for a short-term let may be assessed individually, meaning the control area is not a blanket ban on all applications.
What are campaigners saying?
Chas Booth, a Scottish Green Party councillor in Leith who sits on both the licensing and planning committees, argues the council is not enforcing the rules adequately and that the Scottish government's legislation contains fundamental flaws.
There is a massive loophole in the law, which hundreds of STL owners are exploiting, and which is causing misery for residents,he said.
Scottish ministers need to wake up and smell the coffee. This legislation has a loophole as big as a barn door, and they need to take urgent action to close it.
Niall Robb of Living Rent echoed these concerns, stating that the council must strengthen its enforcement efforts.
For the majority of STLs to have insufficient planning permission demonstrates how landlords are taking advantage of weak legislation and a lack of enforcement to profit at the expense of tenants and neighbourhoods,he said.
Increasingly, communities are being undermined at the hands of holiday-let landlords who only care about profit. As a result of their actions, residents who keep the city ticking over every day are being forced out by sky high rents and a lack of homes.
What impact are residents experiencing?
Residents living in tenements and residential areas with high concentrations of short-term lets report significant disruption to their quality of life. Katie Beale, a Leith resident, has experienced multiple incidents with guests in the short-term let within her stairwell.
It's the constant noise, the constant turnovers, strangers in the hallway,she explained.
When you live here and you know your neighbours, you've all got your little routines and everyone's very considerate of each other. But your stomach just drops when you hear the wheelie suitcases coming up the street.
Beale described specific incidents including guests running up and down hallways, pressing all buzzers in the stairwell, and throwing items out windows onto the street. She has had to contact police about noise complaints.
I suppose I'm quite resilient but it does wear you down because it's a constant turnover of new people. Who are you going to get is just a bit of pot luck.She added that while visitors to Edinburgh are welcome,
they need to be in the right places.
What do short-term let operators say?
Paul Phillips, who owns a licensed short-term let flat in Edinburgh city centre and serves as a non-executive director of the Association of Scotland's Self-Caterers, is among the 800 property owners with a licence but no planning permission.
I'm now in a position where the property is licensed, it's running without causing any issues to my neighbours,he said.
But my expectation is at some point it will shut down when I have to reapply for my licence because I don't have planning permission in place. This has already happened to many people within the city.
Phillips estimates he has spent approximately £8,000 attempting to secure all necessary regulatory permissions for his business. He characterises the current regulatory environment as frustrating for all parties involved.
It feels like an injustice to be honest. We have enough evidence now, both councils and operators, to understand what the problems are. I think it's sensible to take a step back, tweak the regulations, make sure that businesses that run without any issue that have been running for many years continue to run and those that are problematic or unsafe aren't allowed to run.
What enforcement action is underway?
The City of Edinburgh Council currently has 329 active short-term let enforcement investigations. Of these, 117 relate to licensed properties and 212 concern unlicensed operations. Last year, the council secured its first conviction of an owner operating an unlicensed short-term let, resulting in a £600 fine. A total of 32 cases comprising 52 offences related to short-term lets have been reported to Scotland's prosecution service.
Council leader Jane Meagher stated that the licensing policy is helping ensure holiday lets are safe and properly regulated.
We're aware of the issue between licensing and planning, and our planning committee has agreed to write to the Scottish government to seek solutions. We've also taken on an additional six full-time members of staff to make sure operators have a licence in place.
Scotland's minister for public finance, Hannah Mary Goodlad, was asked in the Scottish Parliament last month whether the legislation would be amended to prevent properties operating as short-term lets without planning permission. She responded that licensing authorities may already refuse new applications if they believe planning control has been breached, and that planning authorities can take enforcement action.
Scotland can already take pride in assuring guests that short-term let accommodation across the country meets consistent safety standards,she added.
What happens next?
Edinburgh Council's planning committee has committed to writing to the Scottish government requesting solutions to the licensing-planning gap. The council has also recruited six additional full-time staff members to strengthen licence administration. Two applications for certificates confirming the lawfulness of existing short-term-let use, submitted on 6 October 2026, were listed as awaiting decisions. The Scottish government has indicated it is considering the issue, though no timeline for legislative change has been announced.
Key Facts
- Of 1,754 licensed entire homes or flats in Edinburgh, 1,225 lack planning permission, with 800 having received explicit refusals
- 465 licensed properties have withdrawn planning applications at least once; 110 have withdrawn multiple applications
- The council has 329 active enforcement investigations, with 117 relating to licensed properties and 212 to unlicensed operations
- Edinburgh became Scotland's first short-term-let control area on 5 September 2022, requiring planning permission for most entire-home lets
- The licensing scheme and planning system operate independently, creating a regulatory gap that campaigners say allows properties to continue operating without required consent
