The decision to do so is based on growing numbers of residential dwellings being converted to short-term lets, alongside Housing Market Area assessments that indicate market pressures, higher house prices, limited affordability, and higher proportions of sales to buyers from outwith the area.

Chair of the Committee, Councillor Ken Gowans, said: “We recognise that the impact of Short Term Lets varies greatly across the Highlands. There are clear differences between the pressures faced in Inverness City and those in our rural communities.

“By progressing to consultation on two proposed Short Term Let Control Areas, we are ensuring that local residents, businesses and community groups have the opportunity to engage fully with the proposals and the supporting evidence. Everyone’s contributions will be vital in shaping the council’s next steps before any final decisions are made.”

Members agreed that the two distinct STLCAs that should progress to consultation are:

• One proposed control area covers Inverness City, spanning Wards 13, 14, 15, 16 and the northern portion of Ward 19.
• The second proposed Highland Rural STLCA covers Lochaber, Sutherland, Skye and Raasay, Wester Ross, Strathpeffer and Lochalsh, Ward 12 Aird and Loch Ness, and the southern rural portion of Ward 19 Inverness South.

The report discussed by members of the Committee highlights that in urban Inverness, Short-Term Lets are spatially concentrated, and pressures on housing supply differ from those experienced in rural areas. For example, in rural communities, recent conversions of residential dwellings into Short-Term Lets have removed significant proportions of housing stock, particularly in remote areas with limited new housebuilding activity.

The committee gave support to an amendment to recommendation IV: “The final decision to designate a Short Term Let Control Area is for E&I Committee, following a post-consultation report to the relevant Area Committees, amending the Scheme of Delegation accordingly, allowing them to comment, and if necessary amend the Short Term Let Control Area within their area committee boundary;”

The Committee’s decision, that for governance reasons needs to go to the next Highland Council meeting as a starred item, will allow the council to move forward with formal public consultation on the proposals and to invite communities, businesses and stakeholders to provide feedback. Details of this public consultation will be provided in due course.

There is currently one designated Short Term Let Control Area in Highland, located in Ward 20 Badenoch and Strathspey.

Caithness, Dingwall and Seaforth, Nairnshire, Black Isle and Easter Ross Committees have opted not to proceed with STLCA designation at this time.