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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