Appendix 1 - Short Term Lets Evidence Paper
Perth and Kinross Council · 31 May 2023
Back to Environment, Infrastructure and Economic Development Committee — 31 May 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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1 Appendix 1 Short-Term Lets Evidence Paper April 2022 Contents Introduction ........................................................................................................................... 1 Methodology ......................................................................................................................... 1 Results Summary .................................................................................................................. 3 Affordability of Housing ......................................................................................................... 4 Short-term Lets ..................................................................................................................... 5 Highland Perthshire Housing Market Area ......................................................................... 9 Housing Needs Assessments ............................................................................................. 11 Strathearn Housing market area ...................................................................................... 13 Recommendation ............................................................................................................ 15 Conclusion .......................................................................................................................... 15 Reference List ..................................................................................................................... 16 Introduction Early engagement for the 2022-2027 Local Housing Strategy indicated availability and affordability of housing as a top concern of Perth and Kinross residents. The growth of Short-term lets in recent years was highlighted as a contributing factor. Community groups in places where tourism is a significant part of the economy, were also feeding back to the council that the lack of affordable housing was impacting on the ability of people to find suitable homes locally particularly affecting young and older people, as their needs changed. Likewise, businesses and services were finding that the lack of available housing was impacting their ability to recruit staff to expand or provide services in the communities where it is needed. Among the reasons given, were rising house prices caused by competition from short-term lets business operators and second home buyers. As a result, the Local Housing Strategy 2022-2027 embedded an action to understand the level of short-term lets, and impact on communities and, whether new planning legislation (Short-Term Let Control Areas, Scotland, 2021) could be effective in balancing the local economic benefits to using residential homes for tourism accommodation and providing enough homes for local need. Methodology Research undertaken in Badenoch and Strathspey Ward for Highland Council for their own evidence paper was taken as a starting point for informative data analysis. The data used was expanded or excluded as appropriate to the Perth and Kinross data.
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2 The approach was taken to create a complete geographic picture by analysing the whole of Perth and Kinross at postcode district level, allowing for reasonable detail and avoiding data gaps between settlements. This also allowed for analysis at various geographic scales, for the period 2017-2021. In order to assess the number of ‘short-term lets’, proxy data had to be used as until the Short-Term Lets Licensing legislation (2022) was established, this was not a data category within the council. The proxies of ‘self-catering units’ and ‘second homes’ were analysed as reliable datasets contributing to secondary lets. A secondary let is a dwelling that is not a primary residence, that is let to guests and is the only type of short-term letting that affected by the control area legislation. The registration of existing Short-Term Lets under the licensing scheme was extended until October 2023. This evidence paper will be updated once the full licencing information is available after October 2023. The key indicator metric was ‘ % of total potential housing stock being used as second homes and self-catering units’ and was defined by Highland Council. ‘Potential’ because not all self-catering units could be used as permanent dwellings as the category includes, temporary dwellings such as lodges, bothys, yurts etc. Although a source of potential short-term lets, many second homes would be used for private purposes. This figure is an indicator of the percentage of housing that is being used as holiday accommodation (second homes and self-catering). The metric of % total potential housing being used as holiday accommodation in Badenoch and Strathspey was 17.11%. This figure includes self-catering units that would not be suitable as residential dwellings (e.g. lodges) so will be inflated but does not include the number of second homes that are casually let, contributing towards ‘short-term lets.’ The Housing Waiting list data could not be used due to the way the data is collected, providing inflated figures over multiple postcodes and therefore not informative. Homes for Private rent could only provide a current snapshot and be useful in determining the percentage of the housing market in this tenure in each postcode district. School rolls were examined to gain insight into potential impact on demographic trends. In addition in 2022, Local Housing Needs assessments were being completed by the Community Housing Trust in 5 communities, supported by Perth and Kinross Council. These were used to direct more detailed analysis, at the sub-postcode level where necessary. The data glossary provides more information on each data set illustrated in the evidence tables throughout the document.
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3 Data Glossary Table 1. Data glossary Results Summary • The proxy data of ‘self-catering units and second homes’ were used as robust ‘short-term let’ data was not a classification until the Short-term licensing scheme (2022). • The data analysis demonstrates that the number of self-catering units through the period 2017-2021 grew significantly (25%) across all areas of Perth and Kinross and is higher at 3% than the Scottish figure of 1.2% of total housing stock (Reference 1). • Generally, the recent growth in self-catering units has brought the figures into alignment with existing numbers of second homes which has shown more steady growth. • Second homes in the Perth & Kinross are still growing at 1% in contrary to the Scottish average decreasing rate of -6.9% (Reference 2) • Self-catering accommodation will make a greater contribution to the local economy than second homes. • A key metric of the analysis was the ‘total potential housing stock being used as self-catering and second homes’. • Highland Council in their similar analysis for Badenoch and Strathspey found that 17.11% of the total potential housing stock was being used as self- catering and second homes (Reference 5) • The data for Perth and Kinross signified that the lower figure of total percentage housing stock being used as self-catering and second homes of 10% was indicative of an impact threshold. • At 2021 levels, the number of homes that could be recovered from a short- control area would be significantly less than 634 (8.3%). The estimate for this Self Catering Units (SCUs) Registered as businesses. Second Homes Included in Council tax figures and pay full council tax (no surcharges) Total Second homes & SCU Indicators contributing to short-term lets Council Tax Listings (includes 2nd homes) All dwellings including second homes Potential Total Housing Stock The total of residential homes, second homes and self catering units. % of potential Housing Stock used as second homes & SCU Short Terms Lets on AirBNB Surveyed Jan'22. Apprx. Figure of secondary accom. Private Lets The number of properties registered as a private let. House Completions (inc. small site ave.) Total house completions over the period. Change = % of Ctax list. Affordable Completions House completions in the 'affordable category' . Total over period. Change = % of Ctax list Purpose built SCUs (Approved applications) Empty Homes (>6mths) Short term empty home Unoccupied Homes (<6mths) Long term empty home. Surcharge payable School Roll (all) The proportion of all dwellings that are let for self catering & second homes. Includes purpose built accomodation that may not be suitable for residential homes. Therefore an over estimate. The number of approved applications for purpose built Self catering. Could be an overestimate. Total over the period Includes schools of the relevant catchment area.
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4 will be refined by the data from the Licensing scheme register, after October 2023. • The areas affected by the 10% threshold include the whole of the Highland Perthshire Market Area and the northern part of Eastern Housing Market Area, north of The Bridge of Cally where the total percentage housing stock being used as self-catering and second homes was quantified as 16.3%. • This area includes parts of the Cairngorm National Park and lies adjacent to the Badenoch and Strathspey Ward in Highland Council. • The postcode districts of Comrie and Ardvorlich (PH6/part FK19) are close to the impact threshold at 8.1% and as such should be monitored. Affordability of Housing The 2022 Housing Need and Demand Assessment indicates that the average Perth and Kinross House Price in 2020-21 was £224,480, 15% above the Scottish average, of £194,100 (Reference 2). Table 2 outlines the income multipliers needed to achieve house purchases as an illustrator of poor affordability. Market Rents are the similar with 45% of households finding them unaffordable. Young people are at further disadvantage as 1 in 2 households cannot afford the market entry point. These 2020 figures demonstrate that affordability is a Perth and Kinross wide issue and especially in rural areas. Table 2: CHIMA data tool 2019/20 affordability for Perth & Kinross using Scot Gov methodology for market entry Reference 3: PKC LHS Briefing 1 (2022) Slide 9. There is concern that changes in the Private Rental Sector to improve energy efficiency and improve tenants’ rights may cause this sector to contract, releasing more housing into sales and potentially increasing short-term lets. In areas with higher proportion of private rental properties, these measures could impact the availability of more affordable and mid-market housing options. The LHS has a number of actions aimed at alleviating affordable housing pressure including target of provision of an urban-rural split that matches population, for affordable homes. The Council also supports rural communities to access the Rural Housing Fund to support affordable and community led housing. Actions that aim to increase the number of affordable homes are:- • LHS Action Plan 1.1 Achieve an average of 210 affordable housing completions annually and maintain 53%/47%, urban/rural split. • LHS Action Plan 1.2 Develop an Empty Homes Action Plan – to bring empty homes back into use.
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5 • LHS Action Plan 1.4 Seek opportunities to deliver a wider range of housing options in rural areas : o Rural areas- work in partnership with private estates, land owners, developers, funders and local communities. o Undertake a targeted Housing Needs Assessments Programme (HNAP) in rural settlements where tackling a lack of AH has been identified as a priority in Community Action Plans (CAPs) o Work in partnership with rural housing specialists to enable Community Development Trusts to secure subsidy from Scottish Land Fund (SLF) and Rural Housing Fund (RHF), private and other funding sources to develop community-led housing o Aim to deliver, via a community-led approach, up to 100 new affordable homes of various types and tenures that reflect HNAP outputs, to be delivered to Design Guide Standard over the period of the strategy Short-term Lets Collection of data at a postcode district level between 2017-2022 allowed a detailed summary of Perth and Kinross as a whole, comparison with national trends and the similar analysis by Highland council. The key indicator of the potential housing stock, utilised for second homes and self- catering units in Badenoch and Strathspey was 17.77%, compared to the Perth and Kinross figure of 2.9%. In contrast to the Scottish decline in second homes of 6.9%, Perth and Kinross showed growth over the period of 1.1%. Meanwhile short-term lets have increased by 25% compared with 12.16% in the Badenoch and Strathspey ward.
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6 Table 3. Perth and Kinross analysis Key Points • Across the whole of Perth and Kinross, the impact of self-catering units and second homes on the total potential housing stock is 2.9%. • Significant growth in self-catering units at 25% over the 5-year period bringing the figure close to the number of second homes. • 72% of newly registered self-catering units could come from purpose built self-catering units applications. • Overall impact a of self-catering is low at 1.4% of total potential housing stock. • Growth of council tax dwellings of 2.9% over the period, more than second homes, far less that self-catering numbers. • Contrary to the Scottish average of a reduction in second homes of 6.9% (Scot gov 2019), in Perth in Kinross the trend is a slight growth of 1.1%. • School rolls have increased very slightly overall at 1%. P & K total 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock (2021) P&K Change over Period Badenoc h & Strathspe y Change Highland Wide change % Scotland Self Catering Units (SCUs) 843 896 987 1015 1054 211 25.0% 1.4% 25.0% 12.16% 38% Second Homes 1120 1187 1136 1118 1132 12 1.1% 1.5% 1.1% -8.13% 2.24% -6.9% Total Second homes & SCU 1963 2083 2123 2133 2186 223 11.4% 2.9% 11.4% 1.6% 8.55% Council Tax Listings (includes 2nd 71646 72247 72917 73700 74264 2618 3.5% 98.6% 3.5% 1.65% 2.98% Potential Total Housing Stock 72489 73143 73904 74715 75318 2829 3.8% 100% 3.8% 2.5% 3.66% % of potential Housing Stock used as second homes & SCU 3% 3% 3% 3% 3% 0.2% 2.9% 0.2% 17.11% Short Terms Lets on AirBNB 1014 1014 1.3% 3.63% Private Lets 11083 14.7% House Completions (inc. small site ave.) 586 578 776 895 673 +3508 4.9% 4.7% 4.9% 37.25% Affordable Completions 123 144 302 153 232 +954 1.3% 1.3% 1.3% Purpose built SCUs (Approved 5 23 20 46 57 +151 17.9% 0.2% 17.9% Long-term Empty Homes 1290 1368 1308 1653 1310 20 0.2% 1.7% 0.8% 36.09% 37.25% Unoccupied Homes (<6mths) 1422 1463 1543 1295 1393 -29 -9.7% 1.8% -9.7% School Roll (all) 17958 18006 17399 18197 18139 181 1% 1% -2.51% 0.5%
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7 Analysis of postcode district allowed the metric of potential housing being used as self-catering and second homes to be mapped for each. Figure 1 illustrates the relatively higher percentages in areas where tourism is a significant part of the economy. Map of Key Indicator Figure 1. Key Indicator: Impact on Potential Housing Stock The areas with higher than 10% lie within Highland Perthshire Market Area and the Mount Blair Community Council Area. The map above illustrates the extent of the Housing Market Areas and includes part of the Cairngorms National Park in the northern extents of both market areas.
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8 The Perth and Kinross housing market areas are defined below. Figure 2. PKC Housing Market Areas Housing market areas are defined through specific analysis of housing patterns to identify relevant boundaries rather than arbitrary governance boundaries. They are used to study the housing market for the Housing Needs and Demand Assessment. Figure 3. National Parks within PKC boundary The Cairngorm National Park lies within the northern boundary of the council boundary and the Loch Lomond and the Trossachs National Park is within the western boundary.
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9 Highland Perthshire Housing Market Area The postcode districts analysis indicated that the Highland Perthshire Housing Market Area was showing an overall impact of 15.6% with potentially between 11% and 38.4% in individual postcode districts being used as second homes and self- catering units (Table 4). All districts demonstrated the trend of growing short-term lets over the period, levelling up to existing second homes numbers, and falling school rolls which may be partly explained by the availability of housing for use as permanent homes and at an affordable level for people working in the area. Table 4. Highland Perthshire Market Area The district with the highest potential figure was PH17 Kinloch Rannoch outlined below. Qualitative evidence was collected that services were being impacted by availability of housing in this area. Highland Perthshire FK21, PH8, PH9, PH15, PH16, PH17, PH18 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 480 515 542 536 562 82 17.1% 7.9% Second Homes 525 553 534 521 545 20 3.8% 7.7% Total Second homes & SCU 1005 1068 1076 1057 1107 102 10.1% 15.6% Council Tax Listings (includes 2nd homes) 6468 6481 6508 6525 6534 66 1.0% 92.1% Potential Total Housing Stock 6948 6996 7050 7061 7096 148 2.1% 100% % of potential Housing Stock used as second homes & SCU 14.5% 15.3% 15.3% 15.0% 15.6% 1.1% 15.6% Short Terms Lets on AirBNB *secondary 512 7.2% Private Lets only live data 1668 23.5% House Completions (inc. small site ave.) 28.6 28.6 52.6 31.6 55.6 +197 3.0% 2.8% Affordable Completions 0 0 24 0 12 +36 0.6% 0.5% Purpose built SCUs (Approved applications) 2 8 7 29 34 +80 16.7% 1.1% Empty Homes (>6mths) data not available 0.8% Unoccupied Homes (<6mths) data not available -9.7% School Roll (secondary) 558 531 541 534 539 -19 -3% School Roll (primary) 684 661 620 634 606 -78 -11%
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10 Table 5. PH17 (Kinloch Rannoch area) Key Points • Significant recent growth in self-catering of 33% reflected in potential housing stock being used as Self-Catering units of 38%, the highest of all areas. • None of this has been due to purpose-built applications in the period so many of these could be residential conversions to short-term letting and is reflected in the decrease in council tax listings. • Reporting of issues housing essential workers to PKC. • School roll is declining but the levels are not significant. • Included in Highland Perthshire analysis The lowest percentage housing stock being used as second homes and self-catering units in the Highland Perthshire Market area was PH8 Dunkeld and Birnam, table 6 below. There is qualitative evidence that there are negative impacts on affordability and availability of housing to support business and services and quality of living even at this lower percentage of 11%. The Housing Needs Assessment identifies the need to reduce competition in the housing market from short-term lets with 87 households looking to move into or within the area in the next 5 years (CHT,2022, PH8 Community Housing Needs Survey). PH17 Kinloch Rannoch 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 21 21 23 20 28 7 33.3% 17.1% Second Homes 34 34 35 34 35 1 2.9% 21.3% Total Second homes & SCU 55 55 58 54 63 8 14.5% 38.4% Council Tax Listings (includes 2nd homes) 142 143 140 143 136 -6 -4.2% 82.9% Potential Total Housing Stock 163 164 163 163 164 1 0.6% 100% % of potential Housing Stock used as second homes & SCU 34% 34% 36% 33% 38% 4.7% 38.4% Short Terms Lets on AirBNB 16 9.8% 9.8% Private Lets 17 10.4% House Completions (inc. small site ave.) 0 0 0 0 0 +0 0% 0.0% Affordable Completions 0.7 0.7 0.7 0.7 0.7 +3 2.3% 2.0% Purpose built SCUs (Approved applications) 0 0 0 0 0 +0 0% 0.0% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 122 112 115 104 117 -5 -4% School Roll (primary) 17 15 18 19 17 0 0%
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11 Table 6. PH8 Dunkeld and Birnam Area Key points • Fairly significant recent growth in the self-catering numbers at 11.6% • Stable second home numbers and comparable with self-catering numbers over the period. • Evidence of transference of residential homes and second homes into self- catering. • Overall impact of holiday accommodation on potential total housing stock is 11% • House completions show small growth at 2% of total potential housing stock with no affordable house provision. Dunkeld has no sites identified for housing in the current LDP • Higher than average Private letting at 20% compared with the Perth and Kinross average of 14% • School roll has significant decrease of the primary roll of 20% over the period. Could indicate a significant impact on viability of community. • Comparing with similar areas, Dunkeld may have had a longer standing problem with lower levels of recent self-catering growth. • Included in Highland Perthshire analysis Housing Needs Assessments The Housing Needs Assessments (HNAs) of Pitlochry; Dunkeld and Birnam – PH8 area; Aberfeldy, Weem, Strathtay, Grandtully, Logierait and Ballinluig; Comrie Community Council area and Mount Blair Community Council and also fed into the analysis. The surveys indicated that the lack of affordable housing was impacting the ability of business to expand, recruit and retain staff. The HNAs did not stipulate if some of the businesses were operating in the short-term lets sector thus it is not always clear whether this business feedback would be in support of controls numbers of short-term lets as part of the solution to the availability of affordable housing. PH8 Dunkeld and Birnam 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 59 59 61 64 66 7 11.9% 5.7% Second Homes 60 65 65 60 60 0 0.0% 5.2% Total Second homes & SCU 119 124 126 124 126 7 5.9% 10.9% Council Tax Listings (includes 2nd homes) 1085 1090 1090 1085 1088 3 0.3% 94% Potential Total Housing Stock 1144 1149 1151 1149 1154 10 0.9% 100% 10% 11% 11% 11% 11% 1% 11.0% Short Terms Lets on AirBNB 47 4.1% Private Lets 234 20.3% House Completions (inc. small site ave.) 6.2 4.2 4.2 4.2 4.2 +23 2% 2.0% Affordable Completions 0 0 0 0 0 +0 0% 0.0% Purpose built SCUs (Approved applications) 0 0 0 3 0 +3 5% 0.3% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 436 419 426 430 422 -14 -3% School Roll (primary) 153 159 146 136 123 -30 -20% % of potential Housing Stock used as second homes & SCU
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12 The Blairgowrie postcode district of PH10 did not identify a significant level of impact from self-catering and second homes, due to the dominance of Blairgowrie and Rattray in the figures (Table 7). However, the Mount Blair Housing Needs assessment provided detailed numbers of a concentration of second homes and short-term lets in their community council area, that was not reflected in the postcode district level analysis. This directed a deeper analysis of individual postcodes confirming the concentration of self-catering and short-term lets in the area north of The Bridge of Cally, amounting to a potential 24% impact level on the housing stock (Table 8). Table 7. PH8 Blairgowrie including Mount Blair Area Key Points • Increases in self-catering unit numbers of 37.2% are not reflected in a significant change of dwellings to holiday accommodation in the postcode district at 3.9% impact of total housing stock. • Decrease in the numbers of second homes. • House completions seem to be translating into homes, reflected in the growing council tax list. PH10 Blairgowrie 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 78 83 92 99 107 29 37.2% 1.8% Second Homes 126 130 120 118 120 -6 -4.8% 2.1% Total Second homes & SCU 204 213 212 217 227 23 11.3% 3.9% Council Tax Listings (includes 2nd homes) 5464 5510 5584 5694 5739 275 5.0% 98.2% Potential Total Housing Stock 5542 5593 5676 5793 5846 304 5.5% 100% % of potential Housing Stock used as second homes & SCU 3.7% 3.8% 3.7% 3.7% 3.9% 0.2% 3.9% Short Terms Lets on AirBNB 143 2.4% Private Lets 731 12.5% House Completions (inc. small site ave.) 63 30 62 95 15 +265 4.8% 4.5% Affordable Completions 38 13 72 24 0 +412 7.5% 7.0% Purpose built SCUs (Approved applications) 1 10 2 1 21 +35 44.9% 0.6% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 721 719 719 766 801 80 11% School Roll (primary) 885 881 921 913 886 1 0%
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13 Table 8. Mount Blair Community Council Area Key Points • The area reflects the postcodes to the north of Bridge of Cally • It was not necessary to conduct a temporal analysis as the HNAs had provided long standing figures that correlated with the 2021 snapshot. • The secondary school roll is less informative due to the dominance of the towns in the figures however the primary school roll suggests a relevant negative impact. Strathearn Housing market area The postcode district of PH6 in table 9, was combined with the partial postcode district of FK19, and showed levels of potential housing stock impact at 8.1%; high in comparison to the adjacent districts in the Strathearn Housing Market Area (Table 10). The growth in self-catering units has been less than Highland Perthshire, at 14.3%. The number of second homes almost a third lower than self-catering units within the postcode district, differing to the Highland Perthshire trend. The data suggests the possible transfer of second homes into the self-catering; potentially a positive economic benefit by comparison. As such this postcode district has not been included in the area of negative potential impact. However, the Housing Need Assessment for the town of Comrie identifies concern by residents of negative impact of ‘short-term lets’ thus it is recommended that these postcode districts be monitored and views sought in any public consultation. Mount Blair Community Council Area 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 72 12.5% Second Homes 69 12.0% Total Second homes & SCU 141 24.5% Council Tax Listings (includes 2nd homes) 504 87.5% Potential Total Housing Stock 576 100%% of potential Housing Stock used as second homes & SCU 24.5% 24.5% Short Terms Lets on AirBNB 143 24.8% Private Lets 113 19.6% House Completions (inc. small site ave.) 0 0 0 0 0 +0 0% Affordable Completions 0 0 0 0 0 +0 0% Purpose built SCUs (Approved applications) 1 4 0 0 8 +13 2% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 721 719 719 766 801 80 11% School Roll (primary) 59 57 67 69 54 -5 -8%
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14 Table 9. PH6, Comrie district Key Points • The sample size of FK19 was too small to be meaningful so combined with PH6 adjacent postcode district • In combination, the numbers of second homes and self-catering units are elevated to some areas where nearing the threshold, The rise in new build completions is not reflected in the council tax list which may account for some of the rise in self-catering units. • Primary school rolls are falling which may partly be indictive of changing demographics. • The area is close to the defined threshold Table 10. Strathearn Housing Market Area PH6/FK19 Comrie NB: Contains all PH6 data but only PKC FK19 data 2017 2018 2019 2020 2021 change % change % of Total Hsg Stock 2021 Self Catering Units (SCUs) 42 41 44 51 48 6 14.3% 3.4% Second Homes 67 73 71 69 66 -1 -1.5% 4.7% Total Second homes & SCU 109 114 115 120 114 5 4.6% 8.1% Council Tax Listings (includes 2nd homes) 1363 1369 1368 1358 1364 1 0.1% 96.6% Potential Total Housing Stock 1472 1483 1483 1478 1412 -60 -4.1% 100% % of potential Housing Stock used as second homes & SCU 7.4% 7.7% 7.8% 8.1% 8.1% 1% 8.1% Short Terms Lets on AirBNB 48 3.4% Private Lets 154 10.9% House Completions (inc. small site ave.) 1.5 2.5 1.5 1.5 8.5 +16 1.1% 1.1% Affordable Completions 0 0 0 0 0 +0 0% 0% Purpose built SCUs (Approved applications) 0 0 0 3 0 +3 7.1% 0.2% Empty Homes (>6mths) Unoccupied Homes (<6mths) School Roll (secondary) 571 582 581 588 605 34 6% School Roll (primary) 159 154 147 142 136 -23 -14% STRATHEARN PH3,4,5,6,7, FK15 2017 2018 2019 2020 2021 change % change % of 2021 Total Hsg Stock Self Catering Units (SCUs) 112 120 134 143 142 30 26.8% 1.5% Second Homes 110 118 131 140 138 28 25.5% 1.4% Total Second homes & SCU 222 238 265 283 280 58 26.1% 2.9% Council Tax Listings (includes 2nd homes) 9193 9289 9372 9443 9527 334 3.6% 98.5% Potential Total Housing Stock 9305 9409 9506 9586 9669 364 3.9% 100% % of potential Housing Stock used as second homes & SCU 2% 3% 3% 3% 3% 1% 1.0% 3.0% Short Terms Lets on AirBNB 193 5.2% Private Lets 1381 14.3% House Completions (inc. small site ave.) 98.2 89.2 77.2 133.2 104.2 +502 5.5% 5.2% Affordable Completions 0 0 0 13 41 +54 0.6% 0.6% Purpose built SCUs (Approved applications) 0 0 2 3 1 +6 5.4% 0.1% Empty Homes (>6mths) data not available Unoccupied Homes (<6mths) data not available School Roll (secondary) 1065 1091 1111 1147 1178 113 11% School Roll (primary) 1143 1079 1077 1256 1252 109 10%
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15 Recommendation For the purposes of defining the potential extent of a Short Term Let Control Area, an impact threshold of 10% was identified as an appropriate indicator of where impact was significant, relative to postcodes districts with lower impacts. Postcode districts above 10%, (identified in the Highland Perthshire Housing Market Area and Mount Blair Community) were analysed as a whole illustrated in table 11, below. Table 11. Proposed Short-Term Let Control Area (STLCA) The STLCA as a whole, shows an impact of self-catering and second homes of 16.3% and resulting potential impact on primary school roles, reflected in the total fall of 1%. Notably the impact indicator of 16.3% is fairly similar to the Badenoch and Strathspey indicator of 17.77%. The number of short-term lets that would be returned to permanent residential homes through a Short-Term Let Control Area is unknown and will emerge during the planning certificate of lawfulness process. Conclusion This paper has assessed the numbers of potential short-term lets using proxy data and used qualitative data to understand in which communities there are concerns of excessive competition with commercial tourist accommodation in the local housing markets. It is recommended that the threshold of 10% is a potential indicator of the pressure threshold. A short-term let control area would potentially require up to 600 Certificate of Lawfulness or planning applications to be made and will represent a burden on the business operators as well as the council but would offer clarity in the planning system for business operators. The return of properties to permanent residential dwellings will be significantly less than the 8% potential lets identified in this study, due to self-catering units already with planning permission, and will depend on the operation of the policy framework to support planning decisions. More concrete data should be available from October 2023 once the registration of existing lets is complete under the Short-term Lets Licence scheme and it is intended that the study will be updated at that time to STLCA 2021 change % change % of Total Hsg Stock 2021 P&K Change over Period Badenoch & Strathspey Change Self Catering Units (SCUs) 634 8.3% 25.0% 12.16% Second Homes 614 8.0% 1.1% -8.13% Total Second homes & SCU 1248 16.3% 11.4% 2% Council Tax Listings (includes 2nd homes) 7038 91.7% 3.5% 1.65% Potential Total Housing Stock 7672 100% 3.8% 3% % of potential Housing Stock used as second homes & SCU 16.3% 16.3% 0.2% Short Terms Lets on AirBNB 655 9% 3.63% Private Lets 1781 23% House Completions (inc. small site ave.) 55.6 +197 2.6% 0.0% Affordable Completions 12 +36 0.5% 1.3% Purpose built SCUs (Approved applications) 42 +93 1.2% 0.0% Empty Homes (>6mths) 0.8% 36.09% Unoccupied Homes (<6mths) -9.7% School Roll (secondary) 1340 61 5% School Roll (primary) 1492 -77 -5% Total 1% Total -1% Total -2.51%
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16 inform future decisions. However, this study indicates that the case can be made for a Short Term Let Control Area in the areas outlined in Figure 1. Reference List 1. Scottish Government (2019) Research into the impact of short-term lets on communities across Scotland Short-term lets - impact on communities: research - gov.scot (www.gov.scot) 2. Arneil Johnson (2022) PKC Draft Housing Needs and Demand Assessment Arneil Johnson (2022) PKC LHS Briefing Slides 3. 3. Arneil Johnson (2022) PKC Tayside Briefing Slide Tayside Housing Needs and Demand 4. Communities Housing Trust (2022) PH8 Community Housing Needs Survey 5. Highland Council (2022) Committee Report for the Economy and Infrastructure, Committee 2nd December 2022.