Highland Council considers short-term let controls in Sutherland, Skye and Raasay

At meetings held on Monday 1 December, the Sutherland County Committee and the Isle of Skye and Raasay Area Committee each agreed to progress the process of examining whether STL Control Areas should be designated. Both committees emphasised that any future proposals will include opportunities for local communities to participate in consultation.

A report presented to the Sutherland County Committee highlighted that average house prices in the area have risen by 34% between 2019 and 2024—the largest increase across Highland housing market areas.

Sutherland also has higher rates of sales to buyers from outside Highland, Scotland and the UK, alongside elevated levels of “ineffective stock,” including second homes, empty properties and short-term lets. Currently, 8% of potential dwellings in Sutherland are licensed STLs, compared to 6% across Highland overall.

Councillor Richard Gale, chair of the Sutherland County Committee, said: “Empty homes, second homes and homes used for short-term lets were all identified as additional sources of pressure on housing in Sutherland. Housing is becoming less affordable and more difficult to secure for residents, which can impact communities, populations and local amenities such as schools. While tourism brings economic benefits, it is important that we address these challenges in more detail.”

Evidence presented to the Isle of Skye and Raasay Committee showed even sharper pressures. Across the ward, 17% of potential dwellings are licensed STLs, far above the Highland average of 5%. All local data zones exceed the threshold of 11.17% STL rates considered outside the statistical norm. The report also found that 15.5% of new housing completions in the past five years have been converted to STLs, more than double the Highland average.

Councillor John Finlayson, chair of the Skye and Raasay Committee, said: “Houses are less affordable and have higher rates of STLs and second homes than Highland as a whole. The availability and affordability of housing is a key issue of concern, so it is only right that we consider steps that could ease some of the existing pressures. Communities who have created Local Place Plans have also highlighted the need for discussions about housing availability for people of all ages.”

Both committees agreed that any designation of STL Control Areas would not apply retrospectively to existing lets where no material change of use had occurred. Instead, planning permission would be required for new STLs established after a control area comes into force. Should the council’s Economy and Infrastructure Committee formally begin the process, further evidence gathering and public consultation will take place.