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27/06/2025

Positive Step Forward: Highland Councillors Delay Further Controls on Short-Term Lets

The Association of Scotland’s Self-Caterers (ASSC) warmly welcomes the decision by Highland Councillors to delay the implementation of further controls on short-term lets (STLs) in the region. After careful consideration and debate, this sensible and pragmatic approach reflects a balanced view that will allow for more informed discussions about the best way forward for the sector.

While we appreciate the concerns raised by Councillors Gregson and Macpherson regarding housing issues in the Highlands, it’s important to clarify that the current evidence does not support claims that short-term lets are a primary driver of these problems. In fact, 55% of operators in the self-catering sector manage only one property, meaning the vast majority of businesses are small, independent operators. The sector as a whole contributes £200m to the Highland economy and supports around 7,000 jobs, offering substantial benefits to local communities.

We also want to address some misunderstandings in the recent debate. Councillor Gregson’s assertion that self-catering units are contributing to housing shortages overlooks the fact that empty homes and second homes in the Highlands significantly outnumber self-catering units. The housing issues in the region are much more complex, and it’s important not to confuse the presence of self-catering accommodation with a lack of affordable housing.

Similarly, Councillor Gregson raised concerns about the loss of the traditional Highland bed and breakfast experience, suggesting that Airbnb-style visits were to blame. However, B&Bs and self-catering properties serve different market needs. While the demand for traditional B&B accommodation remains, self-catering offers visitors greater independence, flexibility, and affordability—qualities that are becoming increasingly popular with a wide range of tourists.

Additionally, Councillor Gregson’s comments regarding the loss of income from non-domestic rates and council tax are not entirely accurate. Self-catering units are already liable to Non-Domestic Rates, and second homes are subject to a 200% council tax surcharge. Self-catering businesses are already making a significant contribution to local economies through these taxes, alongside the jobs and other economic benefits they support.

As for concerns raised by Councillor Macpherson regarding “miniature hotels” and residents’ lack of recourse, it’s worth noting that the licensing system already ensures that short-term let operators comply with safety and regulatory standards. Local communities have clear avenues for addressing any issues they encounter, and the licensing system provides a robust framework for such concerns. Additionally, the Scottish Government’s decision in 2021 to remove “overprovision” from the short-term let licensing regime means that it is no longer possible for councils to refuse applications based on overprovision. Furthermore, the Court of Session’s 2023 ruling confirmed that a Planning Control Area (PCA) cannot be applied retrospectively, making the suggestion to impose such a control on existing operators not feasible.

The decision to delay the proposals for a planning control area (PCA) is a positive and practical step. We support this approach, which will allow for further careful consideration of the evidence and potential solutions.

Fiona Campbell MBE, CEO of the Association of Scotland’s Self-Caterers said:

“I’m pleased to see Highland Councillors taking a sensible and balanced approach by delaying any further controls on short-term lets. The self-catering sector contributes significantly to the Highland economy, and it’s important that we focus on evidence-based solutions that support both the local housing market and the tourism industry. The reality is that self-catering units represent a small part of the overall housing picture, and we must avoid conflating the challenges of empty homes and second homes with the contributions of responsible self-catering businesses.”

We look forward to continuing to engage with policymakers and other stakeholders to ensure a fair, evidence-based approach to short-term let regulation that works for everyone.

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