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Scotland’s Housing Challenge: Rebalancing the Evidence

Housing policy must be guided by evidence, outcomes and proportionality

The Association of Scotland’s Self-Caterers (ASSC) recognises that Scotland faces significant housing challenges. Falling rates of housing delivery, growing demand for social housing, affordability pressures and concerns around housing quality all require urgent policy attention.

However, effective policymaking requires a clear understanding of the causes of these challenges and whether interventions are delivering their intended outcomes.

In June 2026, the ASSC published Scotland’s Housing Challenge: Rebalancing the Evidence, a comprehensive briefing for Scottish Ministers, MSPs and policymakers examining the latest housing statistics, short-term let licensing data and independent research.

The briefing asks a simple but important question:

Has extensive regulatory intervention in Scotland’s self-catering sector delivered measurable housing benefits?

Key Findings

Scotland’s housing challenges are primarily structural

The evidence demonstrates that Scotland’s housing challenges are fundamentally driven by:

  • Insufficient housing supply
  • Falling affordable housing delivery
  • Growing social housing demand
  • Housing affordability pressures
  • Housing quality and condition issues
  • Significant levels of vacant and underutilised housing stock

These challenges require long-term structural solutions.

Scotland has already implemented extensive regulation

Since 2022, Scotland has introduced one of the most comprehensive regulatory frameworks for short-term lets in Europe, including:

  • Mandatory short-term let licensing
  • Planning Control Areas
  • Additional planning requirements
  • Changes to tax treatment
  • Reforms to Non-Domestic Rates
  • The introduction of Visitor Levy legislation

These measures have significantly reshaped Scotland’s self-catering sector and imposed substantial compliance costs on businesses.

The evidence demonstrates regulation. It does not demonstrate housing outcomes.

The latest Scottish Government licensing statistics show:

  • More than 42,000 licence applications received
  • More than 32,000 licences and exemptions in operation
  • Approximately 90% of validated applications granted

These figures demonstrate successful implementation of the licensing regime and high levels of compliance.

However, there remains no robust national evidence demonstrating that these interventions have resulted in:

  • Increased housing supply
  • Improved housing affordability
  • Reduced homelessness
  • Reduced demand for social housing
  • Increased long-term rental availability

The evidence currently demonstrates regulatory activity. It does not demonstrate corresponding housing benefits.

Relative scale matters

Independent analysis by BiGGAR Economics estimates that:

  • Secondary short-term lets account for approximately 0.8% of Scotland’s housing stock
  • Vacant homes and second homes account for approximately 4% of housing stock

This does not mean short-term lets cannot have localised impacts. However, it does raise important questions about where policy effort is most likely to deliver meaningful housing outcomes.

Not all short-term lets are potential housing stock

The Scottish Government’s licensing statistics cover a broad range of accommodation types, including:

  • Secondary lets
  • Home sharing
  • Home letting
  • Pods and cabins
  • Shepherd huts
  • Other tourism-specific accommodation

Many of these accommodation types would not ordinarily contribute to permanent residential housing supply if they ceased operating.

Policy discussions should therefore distinguish between conventional residential dwellings and wider categories of visitor accommodation.

ASSC Policy Position

The ASSC believes that housing policy should focus on interventions most likely to deliver measurable outcomes for communities.

We support:

Increasing housing supply

Accelerating housebuilding, supporting affordable housing delivery and removing barriers to housing development.

Bringing empty homes back into use

Prioritising vacant and underutilised properties where there is clear potential to increase housing availability.

Strengthening the evidence base

Ensuring future interventions are supported by robust housing impact assessments and meaningful outcome monitoring.

Place-based policymaking

Recognising that housing and tourism markets differ significantly across Scotland and avoiding one-size-fits-all approaches.

Reviewing Planning Control Areas

Pausing further expansion until existing Control Areas have been independently evaluated against their stated housing objectives.

A National Use Class Order

Exploring a dedicated Use Class Order for self-catering accommodation to provide clarity, consistency and a more proportionate long-term planning framework.

A Better Way Forward

Housing and tourism should not be viewed as competing interests.

Scotland needs thriving communities, affordable homes and a successful visitor economy. Achieving all three requires policy that is evidence-led, proportionate and focused on outcomes rather than assumptions.

The ASSC remains committed to working constructively with Scottish Government, local authorities, MSPs and industry partners to develop practical solutions that address housing challenges while supporting the businesses, jobs and communities that depend upon Scotland’s visitor economy.

Read the full briefing: Scotland’s Housing Challenge: Rebalancing the Evidence.

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