Highland Council committees makes contrasting decisions on short-term lets

Steps towards introducing a short-term let control area were considered by the local authority’s Wester Ross, Strathpeffer and Lochalsh area committee yesterday.

Members agreed that progressing with consideration of a short-term let control area would enable communities within the area to participate in consultation at the appropriate stage.

The committee also agreed the following steps:

• To consider and note the evidence presented demonstrating the degree of prevalence of short-term lets (STLs) within Wester Ross, Strathpeffer and Lochalsh.
• To note that this evidence demonstrates that the housing market within parts of Wester Ross, Strathpeffer and Lochalsh is subject to significant pressure, exacerbated by high rates of potential dwellings being converted to short-term lets.
• Note that the designation of any new short-term let control area will have no retrospective impact on existing short-term lets where no material change of use had occurred at the time of establishment, and will therefore only require planning permission from new short-term lets established after a short-term let control area comes into force.
• Note that should the Economy and Infrastructure (E&I) Committee formally commence the process of introducing a short-term let control area, this will initiate a process of further evidence gathering and public consultation with communities.

A report presented to the committee found that: “On balance, the evidence at this time indicates that the establishment of a Short Term Let Control Area may be justified in Wester Ross, Strathpeffer and Lochalsh.”

Co-chair of the Wester Ross, Strathpeffer and Lochalsh Committee, Councillor Biz Campbell, said: “We feel that this is worth taking a closer look now, because the overall indicators suggest that in general, both the Ross and Cromarty West and Skye and Lochalsh Housing Market Areas are less affordable and have higher rates of STLs and second homes than Highland as a whole.”

The report comes as the council’s Caithness Area Committee agreed that there is currently no justification for establishing a short-term let control area in Caithness following a detailed review of current housing data and short-term let activity.

The report presented to members at their meeting held yesterday shows that only 2% of potential dwellings in Caithness are licensed as STLs - significantly below the Highland-wide average of 6%. While some growth has been noted in specific areas, including parts of Wick, the overall numbers remain low in real terms.

The report discussed by members also highlighted that Caithness maintains a relatively affordable and contained housing market. 70% of Caithness house sales are purchases by existing Caithness residents, with only 23% of sales going to buyers from outside Highland, Scotland, or the UK - a lower proportion than seen in other Highland areas.

There are currently no registered Local Place Plans in Caithness expressing community concerns about STLs, and the wider evidence does not indicate significant external pressure on the local housing market.

Although committee members agreed to neither progress with a short-term let control area, or to make reviewing the case for one as a standing annual item. They agreed that they could refresh and review the data in future years, only if committee members saw a significant detrimental change.

Co-chair of the committee, Councillor Andrew Jarvie, said: “The committee welcomes the clear evidence basis this report provides about the reality of short-term lets in Caithness. While we recognise that some communities across the Highlands have raised concerns, the evidence shows that here in Caithness, the housing market here remains relatively stable and affordable for local people.

“Short-term lets are a crucial part of our economy and supporting the broader tourism sector. Needlessly interfering with the market and introducing an extra burden at a challenging time for the sector would only be profoundly detrimental to the whole county.”

Across the Highlands, 6% of potential dwellings are licensed as short-term lets, and around 5% of new housing completions across Highland within the last five years are now licensed short-term lets.

An assessment of Wester Ross, Strathpeffer and Lochalsh found that a high proportion of property purchasers come from outwith the local areas.

High proportions of external sales completed to buyers outwith the Highlands, Scotland and the UK could indicate that the local housing market may be distorted by increased external demand.

The Wester Ross, Strathpeffer and Lochalsh Area straddles two Housing Market Areas -  Ross and Cromarty West HMA and the mainland (Lochalsh) part of the Skye and Lochalsh HMA.

In Ross and Cromarty West, 11% of potential dwellings are currently licensed STLs, which is higher than the figure for Highland as a whole. In Skye and Lochalsh, 17% of potential dwellings are currently licensed STLs.

Of all 220 new housing completions in Wester Ross, Strathpeffer and Lochalsh within the last five years, 25 (11.4%) are now licensed STLs.