Short-term lets zones created in Perthshire

Narrow vote to introduce stricter oversight

Two short term let control areas in Perthshire are set to be introduced as part of a bid to address housing shortages impacting communities and businesses.

Despite consistent lobbying effort by the short-term let sector, councillors opted – by a single vote- to approve the designation of two STL control areas, in Highland Perthshire, and the Northern part of the Eastern housing market area.

If approved by Scottish Ministers, the control zones could become operational by January 1st 2027.

Known housing shortage

Lack of housing is a significant problem in parts of Highland Perthshire in particular.

The new control areas will mean that individuals seeking to change any dwelling into a short-term let will have to apply for planning permission.

Previously, only flats needed to go through the planning process. Existing STLs will not be impacted by the designation of the two zones.

Between October 2023 and 14th April 2026, applications for SLTs rose 37% across Perth and Kinross as a whole, with the two impacted control areas seeing surges of 24% (Highland Perthshire) and 63% (Eastern).

An 8-week consultation, which closed in December, saw 86% of those within the control area backing the need for greater planning oversight.

However, those currently operating SLTs opposed the proposal, as did the Association of Scottish Self-Caterers (ASSC) who argued that it would damage the economy and visitor spend.

Economic impact

A Biggar Economics study, commissioned by ASSC, provided the basis for an estimation of the sector’s worth to Perthshire, with £51.8m and 1757 jobs stemming from short term letting in 2023.

ASSC described the one vote margin as ‘hardly a ringing endorsement’ of the new policy, adding: “There is no demonstrable link showing how restricting self-catering will deliver the affordable housing that local communities need.

“What it will do is damage a vital part of the local economy, undermine tourism, small family-run businesses, and the many jobs that depend on visitor spending across rural Perthshire.”

Incremental loss

However, council data produced in support of control zones demonstrated that other existing zones had not produced disproportionate over-restriction of the sector.

The neighbouring Badenoch and Strathspey STL control zone in the Highlands has seen only 13% of applications thrown out.

Those in favour of the new zones in Perthshire believe the majority of applications are still likely to proceed, providing they positively impact local amenity.

“This growth (in STL applications) is occurring in areas already experiencing housing pressure, constrained land supply, and challenges in supporting local services and workplace retention,” read the proposal put before councillors.

“In the absence of further intervention, it is expected that these trends will continue, resulting in an incremental loss of residential accommodation, increasing pressure on local communities, and reduced ability for the planning authority to manage cumulative impacts.

“The Council recognises the important contribution of the STL sector to the local economy and tourism offer. The proposal does not seek to restrict this activity but to ensure that it is considered alongside housing need and residential amenity.”

The Council stated that creating STL control zones should not be regarded as an isolated measure to tackle housing shortage, citing council tax premiums for second homes, the drive for affordable housing and bringing empty lands back into use as additional steps.