The move aims to crack down on the Airbnb-style accommodation that has mushroomed in the city in recent years and preserve the character of the neighbourhoods.
This means that anyone renting out an entire residential property that is not their main home on a short-term basis will need to apply for ‘change of use’ permission through the planning process.
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Council leaders say around a third of all short-term rentals in Scotland are in Edinburgh.
The locks are a familiar sight in Edinburgh, which critics say has been overshadowed by Airbnb’s short-term rentals
The new control zone will come into effect in September.
SNP housing secretary Shona Robison said: “Edinburgh was the first local authority in Scotland to propose a short-term control area and the Scottish Government’s approval represents a major step forward.
“We are committed to giving local authorities the power to address concerns about the impact of short-term letting in their communities if they wish to do so.
“This is an example of that local choice in action – supported by the majority of respondents to the council’s consultation on the proposed designation.
“I recognize the important role that short-haul airports play as a source of flexible and responsive accommodation for tourists and workers, which brings many benefits to hosts, visitors and our economy.
“However, we know that in certain areas, particularly tourist hotspots, the high number of rentals can cause problems for neighbors and make it difficult for people to find housing.
“The Scottish Government considers that the council has adequately considered and responded to the concerns raised before seeking approval to designate the control area. We concluded that the proposed determination would be reasonable.
Cami Day, leader of Edinburgh City Council, said it was “the news we’ve been waiting for after years of leading a campaign for change”.
He said: “I am delighted that ministers have finally answered our calls. It paves the way for Edinburgh to become Scotland’s first short-term control area.
“For too long, too many homes have been lost in our city to the holiday market.
“In fact, around a third of all short-term lettings in Scotland are here in the capital, so the associated issues such as safety, anti-social behavior and noise are having a detrimental effect on many of our residents.
We also have a unique residential pressure in Edinburgh, with a small but densely populated city center and a rapidly growing population.
“Combined with the increase in visitors we receive for the festivals, this has always resulted in a high demand for accommodation during the month of August.
“This policy change will help us to control the number of properties being used inappropriately in this way and will help us to better balance the supply of housing for local people throughout the year without stopping people renting out rooms of performers during the festivals.
“We will now progress in implementing the changes and the next step should be to look at whether we can apply a limit on the numbers as well.”
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