Highland Council Planning Policy Consultation

The Highland Council is consulting on draft planning policies to support the Badenoch and Strathspey Short-term Let Control Area. This consultation will help inform the policies to be used in the Planning Control Area now that is has been approved by Scottish Ministers.

See more on the Planning Control Area.

“The policies have been developed to control short-term secondary letting across Ward 20 to help tackle the rural housing crisis and support rural communities.

“The proposed policies can be viewed and commented upon on the Council consultation page – https://consult.highland.gov.uk/kse/.   All comments received will be considered and used to finalise the policy.   Comments must be submitted in writing no later than 3rd February 2023.  The consultation period has been extended from six weeks to 8 weeks to accommodate the festive period.

“The Highland Council is currently only the second Local Authority in Scotland to be proposing the establishment of a Short-term Let Control Area, after Edinburgh Council commenced their Short-term Let Control Area in September 2022.

“A Control Area is not a ban on Short Term Let and would not change the planning rules around certain type of accommodation.   This consultation is also not related to the recent the Scottish Government announcement for all forms of Short-term Lets to be licensed by April 2024.

“For further information, please visit www.highland.gov.uk/stlcontrolarea  or contact the Highland Council, Development Plans Team on devplans@highland.gov.uk”

Badenoch & Strathspey Becomes Planning Control Area

Scottish Ministers have approved the proposed designation of Highland Council Ward 20 (Badenoch & Strathspey) as a Short-Term Let Control Area.

Fiona Campbell, Chief Executive of the Association of Self-Caterers, said:

“The decision by Scottish Ministers to grant Badenoch and Strathspey a short-term let control area is based on such flimsy, unevidenced grounds.

As the original consultation showed, responses for and against were evenly split. We warned of the unintended consequences of this measure, and the lack of empirical data to support it, and are disappointed that our concerns have been overlooked for an industry that generates over £200m per annum for the Highlands economy. 

While hitting council budgets at a time they can least afford it, there is no evidence that this policy will work in addressing housing challenges. Instead of taking a holistic approach – for instance, building more affordable housing or action on empty homes – clamping down on short-term lets is seen as a simplistic cure-all. 

This is deeply depressing news after we had welcomed the decision to pause short-term let licensing applications for existing operators. It appears that the Scottish Government give with one hand and take away with the other.”

The Highland Council is consulting on draft planning policies to support the Badenoch and Strathspey Short-term Let Control Area. This consultation will help inform the policies to be used in the Planning Control Area now that is has been approved by Scottish Ministers. Please respond to this consultation – find out more here.

In a letter to Highland Council, the Scottish Government confirmed the following:

“TOWN AND COUNTRY PLANNING (SCOTLAND) ACT 1997

TOWN AND COUNTRY PLANNING (SHORT-TERM LET CONTROL AREAS) (SCOTLAND) REGULATIONS 2021: REGULATIONS 3 AND 8
PROPOSED WARD 20 (BADENOCH AND STRATHSPEY) SHORT-TERM LET CONTROL AREA

I refer to your email of 11 August 2022 seeking the approval of Scottish Ministers to designate Ward 20 (Badenoch & Strathspey) of Highland Council area as a Short-term Let Control Area under the terms of the above Regulations.

Scottish Ministers’ Decision

Scottish Ministers have carefully considered all the evidence presented to them including the Council’s Statement of Reasons for the designation and the relevant committee and council meeting reports and minutes.

Circular 1/2021: Establishing a Short-term Let Control Area states that in considering a proposal for a control area, Ministers will seek assurance that the planning authority has: a) taken reasonable steps to raise awareness in the proposed control area(s) and

consulted appropriately;
b) taken account of the views expressed in consultation and considered this with any

other relevant evidence; and
c) come to a reasoned decision as set out in the accompanying statement.

Ministers consider that these points have all been satisfied by the planning authority. The planning authority proposes to designate the control area in order to manage high concentrations of short term lets across the ward, ensure homes and land are used to best effect, and control secondary letting of dwelling houses to protect neighbouring residential amenity. Ministers consider that these are valid reasons to propose the designation, and conclude that the proposed designation would be justified and reasonable.

The Town and Country Planning (Short-term Let Control Areas) (Scotland) Regulations 2021i, read with section 26B(3) of the Town and Country Planning (Scotland) Act 1997 (“the Act”) set out when a short term let is provided.

A change of use of a dwelling house to a short-term let after the designation of the control area will be deemed to be a material change of use by virtue of section 26B of the Act.

Where the change of a dwelling house to a short-term let took place before the designation of the control area the existing rules will apply. These require planning permission for a change of use of property where that change is a material change in the use of the property.

Following the submission of the Council’s request to Ministers, further correspondence has been received from Shepherd & Wedderburn on behalf of Airbnb. Ministers have taken this correspondence into account in this decision on the proposed designation. The correspondence does not alter Ministers’ view that the proposed designation of the STLCA is justified and reasonable.

Accordingly and on the above basis, Scottish Ministers hereby approve the proposed designation of Highland Council Ward 20 (Badenoch & Strathspey) as a Short-Term Let Control Area.

STL-270-001 Decision letter

The Cost of Short-Term Let Licensing and Planning – Survey Winter 2022

Background

  • The ASSC continues to collate evidence of the impact of the challenges facing our sector. In late November 2022, the ASSC surveyed over 1,100 businesses on short-term let planning and licensing regulations.
  • The data shown in the below survey results will be used to inform ongoing discussions with the Scottish Government and other stakeholders.
  • The results highlight the variation in costs in relation to obtaining a short term let license from planning permission to insurance and risk assessments for businesses across Scotland.
  • Headlines show that 93% of businesses remain concerned about short-term let licencing with 66% saying they are considering leaving the sector.
  • While this survey was undertaken prior to the announcement of the welcome six-month delay for existing operators, it demonstrates the work to be done in allaying the fears of those involved in Scotland’s vital tourism industry and securing a sustainable future for those involved.
  • The Scottish Government must work in lockstep with industry and local councils to minimise the regulatory burden to support small business during these challenging times.
  • The self-catering sector boosts the Scottish economy by £867m per annum, supporting 24,000 jobs. It provides a vital source of alternative accommodation for major events like the Edinburgh Festivals whose future viability remains at risk due to draconian short-term let regulations.

Headlines

Of the 1,148 businesses that responded to this survey:

  • 87% had not yet have not yet applied for a licence despite the timeline for implementation
  • Of those operators that have applied, 89% still being considered by local councils
  • Those involved in the sector are downbeat about the future: 63% said they were pessimistic to very pessimistic.
  • This is, in part, due to the costs associated with short-term let licensing and planning. Planning costs vary dramatically and are a significant cost for operators on top of all other costs to be able to apply for a licence.
  • 66% were considering leaving the sector or were not sure, while 64% said they will leave due to short-term let regulation and its associated costs.
  • Interestingly, of those considering leaving the sector, a massive 95% said that if they sell their property, it would not be available for affordable housing.
  • 71% say that STL licensing significantly impacts on their business (93% are concerned to very concerned).
  • In terms of other costs, 66% utility price increase significantly impacts in their business (94% are concerned to very concerned).
  • Consequently, 40% are experiencing new and mild mental health problems with just under one-in-ten (7%) experiencing new and severe mental health problems.