Short Term Let Control Area Proposal
Perth and Kinross Council · 28 August 2024
Back to Economy and Infrastructure Committee — 28 August 2024 and its agenda
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Perth And Kinross Council Economy and Infrastructure Committee 28 August 2024 SHORT-TERM LET CONTROL AREA PROPOSAL Report by Strategic Lead - Economy, Development and Planning (Report No. 24/235) 1. PURPOSE 1.1 To seek approval to commence the formal statutory process to introduce a Short-term Let Control Area informed by the results of the 2023 non-statutory consultation on the principle of a Control Area, and updated research by housing experts Arneil Johnston using the Licence register of short-term lets (STLs). 2. RECOMMENDATIONS 2.1 It is recommended that the Committee: (i) approves the attached Statement of Reasons; (ii) instruct officers to commence the statutory 28-day notification; and (iii) agree that officers bring back a report that will set out consideration of any representations prior to remitting to Scottish Ministers for approval. 3. STRUCTURE OF REPORT 3.1 The report is structured over the following sections: Section 4: Background Section 5: Proposals Section 6: Statutory Process Section 7: Conclusion Appendices 4. BACKGROUND 4.1 The Scottish Government and local authorities have recognised the need to manage the number of commercial short-term lets to protect both the supply of homes to meet local need (including key workers) and the amenity of residential areas. STL Control Area legislation was introduced in April 2021, permitting local authorities to establish Control Areas where it considers it to be necessary. Within Control Areas planning permission is required for the Change of Use of residential properties to short-term lets ‘to allow consideration of impacts on the availability of residential housing’. Since the introduction of this legislation, two such Control Areas have been established: across the entire City of Edinburgh Council area (Sept 2022) and the Badenoch & Strathspey ward of the Highland Council area (March 2024).
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4.2 Feedback from the Highland Council is that since the introduction of the Badenoch and Strathspey STL Control Area on 4th March 2024, 60 planning applications have been submitted as a consequence of the designation. Currently 52 are under consideration, with 8 having been approved. 4.3 The Local Housing Strategy identified housing supply and affordability concerns of communities, particularly in rural areas, resulting in an action to consider the feasibility of a Control Area (Action 1.7.LHS_2022- 27_Action_Plan.pdf (pkc.gov.uk); to develop projects for key worker housing funding in the action plan update (LHS_Annual_Progress_Report_2022- 24_tz54epk2hrlf.pdf (pkc.gov.uk); and to assist with the alleviation of recruitment issues, highlighted on page 14-15 of the STL Evidence Report (appendix 1). 4.4 The EI&ED Committee of 31st May 2023 (Short Term Let Control Area: Proposals for Consultation - no.23/171,) approved the undertaking of public consultation on the principle and agreed the potential boundary of a Short- term Let Control Area, with an instruction to officers to report on the results and to provide additional analysis based on applications for short-term let licences. The consultation was completed in August 2023; however, the Scottish Government extended the deadline for submission of licence applications by existing operators to 1st October 2023, resulting in a delay in completion of the analysis to late spring 2024. 4.5 Non-statutory planning guidance was also approved by Committee in November 2023 (Short Term Let Non-Statutory Planning Guidance - no. 23/289) to support planning determinations for Change of Use of residential dwellings to short-term lets across the entire Council area. Short-term Let Control Area regulations apply to a particular short-term let, that is a secondary residence which is not in whole or in part, a primary or main residence. 4.6 Following a non-statutory consultation exercise in 2023, a total of 334 responses were received from residents (224), business owners (95), and various organisations, both community trade (14). 53% of respondents agreed with the proposal to designate an STL Control Area with 41% disagreeing and 5% having no strong opinion either way. In general responses from within the proposed control area were more strongly in favour of the principle, at 76% of residents and 57% of organisations. However, businesses were generally not supportive with 69% against the principle. Further detail is included in appendix 2. 4.7 The STL Licence scheme had registered a total of 1124 existing secondary let applications by the close of the register for existing lets in October last year, with the majority in Highland Housing Market Area (HMA) at 53%, 17% in Greater Perth HMA, 14% in Eastern, 13% in Strathearn, and 2% in Kinross. A distribution map is included in the Evidence Paper attached as appendix 1. Table 1: Distribution of secondary existing lets across Housing Market Areas at 1st November 2023
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4.8 It is worth noting that there has been an 8% growth rate per annum of new, secondary home STLs added to the licence register since the relevant legislation was introduced in October 2022. 5. PROPOSALS 5.1 Following further analysis on housing affordability and market pressure; distribution of registered STLs; the introduction of a short-term let Control Area would help to achieve a better balance between supporting the provision of visitor accommodation, and the protection of future housing supply within a defined area. Protection of that future housing supply will also support the sustainability of the visitor economy which helps sustain more than 8000 full- time equivalent jobs across Perth and Kinross (STEAM, 2022). Short-term let levels have been evidenced as a contributor to housing pressure within specific areas (appendix 1) of Highland Perthshire and northern half of the Eastern housing market areas. 5.2 Consequently it is recommended that a short-term let Control Area is established in the above areas as delineated in the map attached as appendix 4. 5.3 The effects of a Control Area would be to: Allow the Council as planning authority to consider the best use of residential properties in defined areas of higher concentrations of STLs in areas of higher housing pressure, along with other relevant planning matters such as character and amenity. Assist the Council in managing sustainable tourism development by aligning the planning requirements for short-term lets with other forms of tourism accommodation. Clarify to the tourism industry that proposals for new STLs may not, in all instances, be considered by the Council as the most appropriate use of residential dwellings within the Control Area. Create clarity around when planning permission is required for a Change of Use by requiring it in almost all circumstances. Create parity across all forms of secondary STLs (currently only flatted dwellings, which generally are smaller operations, are explicitly required to apply for planning permission). Control any potential displacement impacts from the adjacent Badenoch and Strathspey STL Control Area. 5.4 The specific features of a Control Area are that: It is not retrospective and does not apply where the change of use to short-term let occurs prior to the Control Area coming into effect.
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The requirement for planning permission only applies to secondary dwellings (properties that are not part of a main, primary residence). The requirement applies only within the STL Control Area. It is not a ban on short-term lets rather, it enables full consideration of each STL application through the planning process. It does not negate the need for a STL Licence. Planning permission, where required, is usually granted on a permanent basis, whereas an STL Licence requires renewal every three years. STLs with evidenced operation of 10 years or more do not require planning permission regardless of whether a Control Area is in place. 6. STATUTORY PROCESS 6.1 Should the Committee agree to the recommendation to establish a Control Area, a statutory process is required to be followed: Publish public notification of the intention to designate a Control Area, including a statement of reasons (appendix 3) and a map of proposed Control Area (appendix 4). A minimum period of 28 days must be given for public representations to be made. A subsequent report to Committee on the outcome of public notification, and any changes because of representations received, prior to submission to Scottish Ministers for their approval. On approval from Scottish Ministers, the notice of designation of the Control Area is required to be published including the date on which the designation becomes effective, together with the finalised map. 6.2 Considering the time required by Scottish Ministers to reach a decision, it is estimated that a Control Area could be established mid-2025. 7. CONCLUSION 7.1 The evidence from public consultation and additional Licence data research supports action to allow the Council as Planning Authority to consider the most appropriate use of residential properties in specific areas of housing pressure. In these areas there are higher than average concentrations of STLs. It is therefore recommended that the committee approves the commencement of the formal process to designate an STL Control Area across the Highland Perthshire Housing Market Area and the northern part of the Eastern Housing Market Area.
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Authors Name Designation Contact Details Stephanie Durning Katrina Walker Planning and Policy Officer, Housing Strategy Team Planning Officer, Development Plans Team (01738) 475000 ComCommitteeReports@pkc.gov.uk Approved Name Designation Date David Littlejohn Strategic Lead, Economy, Development & Planning 16 August 2024 APPENDICES Appendix 1 – Short-term Lets Evidence Paper Appendix 2 – Consultation Results Appendix 3 – Statement of Reasons Appendix 4 – Map of Proposed Control Area
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ANNEX 1. IMPLICATIONS, ASSESSMENTS, CONSULTATION AND COMMUNICATION Strategic Implications Yes / None Community Plan / Single Outcome Agreement Yes Corporate Plan Yes Resource Implications Financial None Workforce Yes Asset Management (land, property, IST) None Assessments Equality Impact Assessment Strategic Environmental Assessment Yes Sustainability (community, economic, environmental) Legal and Governance None Risk None Consultation Internal Yes External Yes Communication Communications Plan Yes 1. Strategic Implications Community Plan/Single Outcome Agreement 1.1 This report supports the priority within the Community Plan 2022-27 to reduce poverty by recognising the need to consider the impact short-term lets can have on the availability of affordable housing. Corporate Plan 1.2 This report supports the objectives within the Corporate Plan 2022-2027 to tackle poverty by recognising the need to consider the impact short-term lets can have on the availability of affordable housing. 2. Resource Implications Financial 2.1 n/a. Workforce 2.2 The introduction of a Short Term Let Control Area would result in additional planning applications being received by the Council. This will have an associated increase in workload pressures. The Planning Service will monitor and manage any increase, and at this time it is not anticipated that more staffing will be required.
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Asset Management (land, property, IT) 2.3 n/a. 3. Assessments – Highlighted sections to be updated once the new IVA process has been completed Equality Impact Assessment 3.1 Under the Equality Act 2010, the Council is required to eliminate discrimination, advance equality of opportunity, and foster good relations between equality groups. Carrying out Equality Impact Assessments for plans and policies allows the Council to demonstrate that it is meeting these duties. The Equality Impact Assessment undertaken in relation to this report can be viewed clicking here. Final STLCA EFIA.pdf This section should reflect that the proposals have been considered under the Corporate Equalities Impact Assessment process (EqIA) with the following outcome: (i) Assessed as not relevant for the purposes of EqIA (ii) Assessed as relevant and actions taken to reduce or remove the following negative impacts: (add summary points only here) (iii) Assessed as relevant and the following positive outcomes expected following implementation: (The proposal has the potential to have positive impact by increasing the number of homes in the Short-term lets by with potential small impact on affordability. ). Strategic Environmental Assessment 3.2 The Environmental Assessment (Scotland) Act 2005 places a duty on the Council to identify and assess the environmental consequences of its proposals. 3.3 Proposals have been considered under the Act and pre-screening has identified that the PPS will have no or minimal environmental effects, it is therefore exempt and the SEA Gateway has been notified. The reason(s) for concluding that the PPS will have no or minimal environmental effects is that the planning guidance will be non-statutory and sit within the framework of the National Planning Framework 4 which has undergone full SEA. Sustainability 3.4 Under the provisions of the Local Government in Scotland Act 2003 the Council has to discharge its duties in a way which contributes to the achievement of sustainable development. Under the Climate Change (Scotland) Act 2009 the Council also has a duty relating to climate change and, in exercising its functions must act: in the way best calculated to delivery of the Act’s emissions reduction targets;
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in the way best calculated to deliver any statutory adaptation programmes; and in a way that it considers most sustainable. This section should reflect the steps that have been taken to assess the proposals against the Council’s Principles for Sustainable Development. Click here for further guidance. Legal and Governance 3.5 If the Council decides to proceed to the formal designation of a control area then input will be sought from Legal and Governance. Risk 3.6 n/a. 4. Consultation Internal 4.1 Advice and views have been sought from colleagues in Development Management and the Communities – Place Development Team in the preparation of this report. External 4.2 Consultation has taken place with neighbouring local authority, the Highland Council, and with the Cairngorms National Park Authority in respect of our proposals to designate a Short-term Let Control Area. Neither has raised concern. The Highland Council has also provided some information on applications submitted post Control Area designation. 5. Communication 5.1 The formal notification regarding designating a short-term let control area will be open to the general public across the whole of Perth & Kinross via the consultation hub and a hard copy available for consultation in. It will also be particularly targeted at: community groups; community development and housing trusts; the Association of Scotland’s Self-Caterers; local tourism associations in particular those within the potential control area; HSCP neighbouring local authorities and National Park Authorities. 2. BACKGROUND PAPERS 2.1 The following documents were referred to or relied upon in preparing this report: Perth & Kinross Local Housing Strategy 2022-27
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Town and Country Planning (Short-term Let Control Areas) (Scotland) Regulations 2021 Planning Circular 01/2023: Short-term Lets and Planning National Planning Framework 4 Perth & Kinross Local Development Plan 2 Perth & Kinross Council STEAM Tourism Economic Impacts 2023 Year in Review