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Short-Term Let Control Area

Perth and Kinross Council · 7 May 2025
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Our vision is a Perth and Kinross where everyone can live life well,
free from poverty and inequality
___________________________________________________________________
Committee or Board: Perth and Kinross Council 
Date of Meeting: 7 May 2025 
Report Title: Short Term Let Control Area 
Report Number: 25/114
Report Author: Kevin Divin, Team Leader - Housing Strategy
Organisational Lead: Serge Merone, Strategic Lead - Economy,
Development and Planning
___________________________________________________________________
1. Purpose 
1.1 This report seeks approval to commence the formal statutory process to
introduce a Short Term Let (STL) Control Area for Highland Perthshire and
northern part of the Eastern housing market areas.
1.2 This report is structured over the following sections:
1. Purpose
2. Recommendations
3. Background/Context
4. Proposals
5. Statutory Process 
6. Conclusion
7. Impact Value Assessment
8. Appendices
2. Recommendations 
It is recommended that the Council: 
2.1 Agree to proceed with the notice of a proposal for the designation of a Short
Term Let Control Area for Highland Perthshire and northern part of the
Eastern housing market areas.

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3. Background
3.1 The Scottish Government and local authorities have recognised the need to
manage the number of commercial STLs to protect both the supply of homes
to meet local housing need (including key workers) and the amenity of
residential areas. STL Control Area legislation was introduced in April 2021,
permitting local authorities, as the planning authority, to establish Control
Areas. Within Control Areas, planning permission is required for the change of
use of dwellinghouses to STL ‘to allow consideration of impacts on the
availability of residential housing’.
3.2 For clarification, planning permission has always been required to change the
use of a residential flat to a STL. Since the introduction of this legislation, two
such Control Areas have been established in Scotland: across the entire City
of Edinburgh Council area (Sept 2022) and the Badenoch & Strathspey ward
of the Highland Council area (March 2024). 
3.3 The Local Housing Strategy (2022-2027) identified a reduced 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) along with other actions.
3.4 The Environment, Infrastructure & Economic Development Committee of 31
May 2023 Short Term Let Control Area: Proposals for Consultation - Report
No. 23/171 refers) approved the undertaking of public consultation on the
principle and agreed the potential boundary of a STL Control Area, with an
instruction to officers to report on the results and to provide additional analysis
based on applications for STL licences. The consultation was completed in
August 2023; however, the Scottish Government extended the deadline for
submission of licence applications by existing operators to 30 September
2023, resulting in a delay in completion of the analysis to late spring 2024.
The consultation exercise in 2023 received 333 responses from residents
(224), business owners (95), and various organisations, both community and
trade (14). Of the respondents, 53% agreed with the proposal to designate an
STL Control Area with 41% disagreeing and 6% 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.
3.5 A Non-statutory planning guidance: Change of Use of Residential Property to
Short-term Let was approved by the Environment, Infrastructure & Economic
Development Committee on 1 November 2023 (Report No 23/289 refers) to
inform planning considerations for change of use of residential dwellings to
short-term lets across the entire Council area.

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3.6 The Economy and Infrastructure Committee on 28 August 2024 (Report ref:
24/235) noted the contents of the report and rejected the recommendations to
proceed with the designation of a SLT Control Area for Highland Perthshire
and northern part of the Eastern housing market areas. Officers were asked to
reconsider the planning considerations.
3.7 Since the public consultation and analysis, the number of STL licences has
grown. By 19th February 2025, the STL Licence scheme had granted a total of
1699 licences for STLs. The majority (49%) are in Highland Housing Market
Area (HMA), 18% are in Greater Perth HMA, 15% in both Eastern and
Strathearn and 3% in Kinross HMAs.
A distribution map is included in the Evidence Paper attached as appendix 1.
The distribution has remained very similar to when the map was created at
the close of the licence registry to existing STLs, but the detail is highlighted in
tables 1 and 2 below.
Table 1: Distribution of secondary STLs across Housing Market Areas at 19th February
2025.
3.8 Existing STLs had to apply for licence registration by 30 September 2023.
Since then, the growth in the number of new licences has been significant at
32% across all areas. The table below outlines the growth rates across
Housing Market Areas. The most growth has been in Eastern HMA at 44%.
Table 2: Growth rate of secondary STLs across Housing Market Areas at Oct 2023-
Feb 2025. 
3.9 The STL sector growth indicates that the demand in the tourism sector is
recovering (Appendix 1) and that the STL sector has a role to play. The
Association of Scotland’s Self-Caterers commissioned Biggar Economics to
assess the economic impact generated by STLs across Scotland. The
analysis published in December 2024 builds on the consultancy’s previous
work on the impact of the STL sector on Edinburgh’s economy. Based on this
analysis, it is estimated that the economic impact generated by the STL sector
in Perth and Kinross is £51.8m GVA and 1,757 jobs in 2023.

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3.10 The number of planning applications that have been received by the council to
18 March 2025 from wards in the proposed control area totals 153. It is the
equivalent of less than 38 per year since the monitoring of STL applications
which started in 2021 (table 3). The number of permissions being sought is
clearly well below the number of licences for STLs, indicating that there is a
number of the STLs that do not require planning permission under the current
system.
Table 3: Numbers of planning applications relating to STLs since 2021- March 2025 by
Ward.
4. Proposals
4.1 Currently, planning permission is only required for the use of a property as an
STL if a material change of use occurs. A change from a flat to a STL is
always considered to be a material change of use requiring planning
permission. For dwellinghouses, the significance of the change must be
considered, but planning permission is not required in many instances. When
a change of use from dwellinghouse to STL is proposed, it is first necessary to
assess whether or not residential amenity will be protected. Consideration
must be given to any change to local amenity, the impact on the character of a
neighbourhood or area, considerations on public and private safety and the
impact on immediate neighbours. The following elements that would be
associated with a STL would have to be taken account of to verify the impact
on residential amenity:-
(a) Guest arrivals and departures procedures;
(b) Particular impacts on other residents in flatted buildings;
(c) Likely frequency and intensity of noise or otherwise unsociable
behaviour;
(d) Impact on public services and residents' amenity;
(e) Cumulative impact on the character and amenity of a neighbourhood;
(f) Number of people the property can accommodate.
4.2 The designation of an STL Control Area would clarify the planning status of
dwellinghouses used for secondary letting. This is defined as being where the
owner/host does not reside at the property and thus allow appropriate
regulatory oversight to balance the needs and concerns of the community as
well as the potential impact on established residential amenity. If introduced,
dwellinghouses within the Control Area would always require planning
permission in order to operate as STLs.

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Once a planning application is submitted, the planning authority would assess
the potential cumulative impact of the STL on the residential amenity and
character of the local area, using the following key considerations: 
1. Where is the proposal located? Is it:
a. Within the city centre or a town centre (as identified in the LDP)
where there would be no adverse impact on amenity or character of
the area?
b. Within an identified settlement (as identified in the LDP) and
located in an area where there is a mix of other uses which could
already affect residential amenity?
c. Within a predominantly residential area and there could be adverse
impact on amenity for existing residents, particularly in blocks with
shared / communal entry?
2. Does the proposal relate to a residential property with four or more
bedrooms, and will there be no adverse impact on local amenity from
noise or disturbance if the let is occupied by a group or more than one
family?
3. Is the proposal for the extensive refurbishment a long-term empty    
property?
4. Will there be no unacceptable impact from the proposal on local amenity
or the character of the area? 
5. Is the proposal part of a diversification scheme to support an existing
Perth & Kinross rural business in line with NPF4 Policy 29: Rural
Development and Local Development Plan Policy 8: Rural Business and
Diversification? 
6. Is there anything which demonstrates that the loss of the residential
accommodation will be outweighed by the benefits of the proposal to the
local economy?
4.3 It must be noted that the Control Area requirements would not be
retrospective, therefore would not apply where the change of use to STL
occurred prior to the Control Area coming into effect. For those changes of
use occurring before the Control Area comes into force, the current position
set out in 4.1 applies. If a dwellinghouse has been used for STL in a continual
manner for more than 10 years, with no planning permission having expressly
been granted, it may be appropriate for the owner to seek a Certificate of
Lawfulness of Existing Use or Development in order to continue operating it
as such.
4.4 The use of buildings such as huts, caravans, agricultural buildings, bothies or
ancillary residential annexes as STLs would not be affected by the
establishment of a Control Area.

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These changes of use require planning permission under current planning
legislation regardless of a Control Area designation, as do the erection of
buildings specifically for STL or holiday lets.  In both instances, there would
still also be a need for an appropriate STL licence. 
4.5 The proposed STL Control Area would: 
 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 STLs with other forms of tourism
accommodation. 
 Clarify to the tourism industry the assessment to be used for proposals
of new STLs. 
 Create clarity around when planning permission is required for a change
of use by requiring it in all circumstances 
 Create parity across all forms of secondary STLs (currently only flatted
dwellings, are explicitly required to gain planning permission).
 Control any potential displacement impacts from the adjacent Badenoch
and Strathspey STL Control Area in the Highland Council area. 
4.6 In the table below, the outcomes of the STL Control Area if implemented on
properties of different status are listed:
Property Status STL Control Area Impact
Use of flat as STL No change as planning permission is
already required to do this
Use of non-residential buildings (e.g.
agricultural or commercial building) as
STL
No change as planning permission is
already required to do this
Proposal for new build holiday
accommodation including huts,
caravans, chalets, etc
No change as planning permission is
already required to do this
Use of dwellinghouses as STL licence for
more than 10 years, but no planning
permission in place
No change, the STL Control Area
requirements would not be retrospective
Use of dwellinghouses as STL licence
less than 10 years, but no planning
permission in place
No change, the STL Control Area
requirements would not be retrospective.
The owner could apply for Certificate of
Lawfulness of Existing Use or Development
to regularise the STL use
Use as a dwellinghouse as STL and the
change of use occurs after the STL
Control Area comes into force
Change – this would require planning
permission which will be assessed against
the Development Plan and the criteria set
out in paras 4.1 to 4.4 above
Table 4: Impacts by property status if STL Control Area is implemented.

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4.7 For clarification, the designation of an STL Control Area would not negate the
need for a STL Licence.
5. Statutory Process 
5.1 Should Council agree to the recommendation to establish a STL Control Area,
a statutory process is required to be followed. This requires the following
steps to be undertaken: 
1. Publish a public notification of the intention to designate a Control Area,
including a statement of reasons (appendix 3 and with the updated
information from this report) and a map of the proposed Control Area
(appendix 4). A minimum period of 28 days will be given for public
representations to be made.
2. A further report will be brought to Council on the representations
received through the public notification procedure to consider whether
any modifications are required to the proposed STL control area. 
3. With or without modifications, the STL control area would then be
submitted to the Scottish Ministers for approval.
6. Conclusion 
6.1 The proposed STL Control Area will introduce the requirement for planning
permission to be sought for dwellinghouses that are to be used as STLs. By
applying for planning permission, it will allow the Council the opportunity to
consider the impact of residential character and amenity, and loss of
residential accommodation.
6.2 It will ensure uniformity across all forms of secondary STLs as currently only
flatted dwellings, are required to apply for planning permission. The Control
Area will provide certainty on when planning permission is necessary to use a
residential property as a STL.
6.3 It is therefore recommended that the Council proceeds with the notice of a
proposal for the designation of a Short Term Let Control Area for Highland
Perthshire and northern part of the Eastern housing market areas 
7. Impact Value Assessment
https://www.pkc.gov.uk/media/53918/Short-Term-Let-Control-Area-
Proposal/pdf/Short_Term_Let_Control_-
_Area_Proposal.pdf?m=1743950262720
EDMS_Communities Committee - EFIA - STLCA May 2025 Full Council
Report.pdf - Open Content

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8. Appendices 
8.1 Appendix 1 – Short-term Lets Evidence Paper
8.2 Appendix 2 – Consultation Results 
8.3 Appendix 3 – Statement of Reasons
8.4 Appendix 4 – Map of Proposed Control Area