Consider Notice of Review Request: 43A Castle Street, Port Bannatyne, Isle of Bute Pa20 0Nb (Ref: 26/0008/Lrb)
Argyll and Bute Council · 14 October 2026
Back to Argyll and Bute Local Review Body — 14 October 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
Classification: OFFICIAL STATEMENT OF CASE for Argyll and Bute Council Local Review Body Address: 43A Castle Street, Port Bannatyne, Isle of Bute Proposal: Change of use from residential to commercial use, to allow for use of the flat as a short term let Local Review Board Reference Number 26/0008/LRB Planning Application Reference Number 26/00888/PP 11th September 2026
Page 2
Classification: OFFICIAL STATEMENT OF CASE The Planning Authority is Argyll and Bute Council (‘the Council’). The applicant who has sought the review is Mrs Faye Preston-Smith, Braigh Bhaile, Crarae, by Furnace, Argyll PA32 8YA (‘the appellant’). The application for Planning Permission (reference: 26/00888/PP) relates to the change of use of an upper floor residential flat to a short-term holiday letting unit at 43A Castle Street, Port Bannatyne, Isle of Bute. PROCEDURAL BACKGROUND The following are the set of dates and background to this case: • Application validation date: 4th June 2026 • Application determination date: 4th August 2026 • Consultation sent to ABC Roads: 4th June 2026 • Response from Roads received: 19th June 2026 – No objections (Appendix 1) • Comments received on 21st June 2026 from Contributor – Mr Robert Black (Appendix 2) Objection due to concerns about the rise of short-term lets and the impact on the local community spirit. • Extension of time sought from Applicant: 8th July 2026 It was explained to the appellant that no Policy position had been reached in relation to NPF4 Policy 30. • Extension declined by Applicant: 8th July 2026 • Consultation sent to ABC Policy: 4th August 2026 No response received at time of application pending. Comments were received on 10th September 2026 and are appended to this document (Appendix 3). There has been insufficient time to fully consider these comments. • The appellant submitted their Review on 17th August 2026 The application is a ‘local development’ falling within the Council's Scheme of Delegation. No extension of time was agreed between the applicant and the Council. The review was made within 3 months of the determination date of 4th August. The review is, therefore, considered competent.
Page 3
Classification: OFFICIAL DESCRIPTION OF SITE AND PROPOSAL The flat (No. 43A) that is the subject of the review is located on the upper floor of a two-storey building at Nos 41 to 43 Castle Street, Port Bannatyne, Isle of Bute. The building comprises a total of six flats – four on the ground floor and two on the first floor. It is a Category C Listed Building, having been designated in February 1998. There are two enclosed shared passageways (closes) running from the public footway on Castle Street to the rear of the building. The ground floor flats are accessed from within the passageways whilst the two upper flats (including the subject property) are each served by an external staircase. The subject property has an area of private garden located on the sloping ground to the rear of the building. The officer’s site visit photographs have been provided to Members to provide the full context of the site and surrounds (Appendix 4). The proposal is for a ‘Change of use from residential to commercial use, to allow for use of the flat as a short term let’ and there are no external or internal changes or extensions proposed to facilitate the change of use. The appellant has confirmed that the short term let use would be for holiday use and not an alternative short term let model i.e. for renting to local workers. SITE HISTORY Planning Permission (ref: 14/02021/PP) and Listed Building Consent (ref: 14/02022/LIB) were granted on 10th October 2014 for the installation of replacement windows in the six flats at Nos 41 to 43 Castle Street, Port Bannatyne. STATUTORY BASIS ON WHICH THE REVIEW SHOULD BE DECIDED Section 25 of the Town and Country Planning (Scotland) Act 1997 (as amended) provides that where, in making any determination under the Planning Act, regard is to be had to the development plan, and all other material planning considerations and the determination shall be made in accordance with the plan unless material considerations indicate otherwise. This is the test for this Review.
Page 4
Classification: OFFICIAL DEVELOPMENT PLAN CONTEXT Had a Report of Handling been prepared for this application, it would have contained an assessment under the following Development Plan policies: National Planning Framework 4 (Adopted 13th February 2023) Part 2 – National Planning Policy Sustainable Places NPF4 Policy 1 – Tackling the Climate and Nature Crises NPF4 Policy 2 – Climate Mitigation and Adaption NPF4 Policy 9 – Brownfield, Vacant and Derelict Land and Empty Buildings (includes provisions relevant to Greenfield Sites) NPF4 Policy 12 – Zero Waste NPF4 Policy 13 – Sustainable Transport Productive Places NPF4 Policy 30 – Tourism Argyll and Bute Local Development Plan 2 (Adopted 2024) Spatial and Settlement Strategy Policy 01 – Settlement Areas Policy 04 – Sustainable Development High Quality Places Policy 14 – Bad Neighbour Development Diverse and Sustainable Economy Policy 23 – Tourism Development, Accommodation, Infrastructure and Facilities Connected Places Policy 40 – Vehicle Parking Provision Sustainable Communities Policy 63 – Waste Related Development and Waste Management
Page 5
Classification: OFFICIAL DETERMINING ISSUES The Council considers that the determining issues in relation to the case are as follows: • Whether the proposed change of use of the flat to a short-term holiday letting unit would cause an unacceptable impact on local amenity or the character of the neighbourhood or area having regard to National Planning Framework 4 Policy 30(e)(i) and Local Development Plan Policy 23. • Whether the proposed change of use of the flat to a short-term holiday letting unit would result in the loss of residential accommodation where such loss is not outweighed by demonstrable local economic benefits having regard to National Planning Framework 4 Policy 30(e)(ii) • Whether there are any other material considerations to be taken into account in the assessment of the proposal other than those stated above COMMENTS ON THE APPELLANT’S CASE A Local Review Body is generally requested to consider those cases where Planning Permission has been refused for a proposed development and, as part of its representation, the Department includes its Report of Handling in the Statement of Case. In this instance, there is no Report of Handling given that the review has been requested on the basis of the Council’s failure to issue a decision. As such, the Department’s case is presented in the form of responses to the numbered points put forward by the appellant in their Review submission, as follows: No. 1 – Introduction and Basis of Review Comment: The contents of this section of the appellant’s submission are noted. No. 2 – Reason for the Application Remaining Undetermined Comment: One of the key issues associated with the current proposal is the assessment under NPF4 Policy 30(e)(ii) as to whether the reuse of the existing as a short term holiday let will result in the loss of residential accommodation where such loss is not outweighed by demonstrable local economic benefits. This particular matter has been one that has been the subject of ongoing examination by officers of the Council and, at the time of writing, no formal policy or non-statutory guidance have been decided upon. Consultation with the Development Policy Section was not carried out at the time that the application was registered and it was not until 4th August that a response was sought. Following the submission of the Review, a memorandum from the Development Policy Section containing their comments was received on 10th September (Appendix 3);
Page 6
Classification: OFFICIAL however, due to the time constraints in providing a statement on the review by 11th September, it has not been possible for the memorandum to be given the necessary level of consideration. No. 3 – Existing Planning Policy Provides a Framework for Determining the Application Comment: Officers are of the view that the majority of issues pertaining to the proposal can be assessed in the context of existing Development Plan policies. However, as referred to elsewhere in this report, full and detailed consideration of the development under NPF4 Policy 30(e)(ii) is not currently possible. No. 4 – Residential Amenity and Character Comment: NPF4 Policy 30(e)(i) does not provide support for development consisting of the reuse of existing buildings for short term holiday letting where the proposal “will result in an unacceptable impact on local amenity or the character of a neighbourhood or area”. LDP2 Policy 23 is also of relevance in that it presumes in favour of new or improved tourist facilities and accommodation where, inter alia, the proposals will “respect and integrate well with the landscape/townscape character and amenity of the surrounding area”. The flat that is the subject of the application under review contains three bedrooms and is on the upper floor of a two-storey building. Access is obtained from Castle Street firstly via a close with the main door entrance being positioned on the rear elevation up an external set of stairs. Access into the two ground floor flats immediately below the subject premises is taken from within the same close. The entrance to the close from Castle Street does not have a controlled entry system. The flat in question also has an area of private garden located on the sloping ground to the rear of the building. There are photographs of this rear area in Appendix 4 showing a drying green and patio area that overlook the rear of the flat and the neighbouring flats. Based on available records, there is no indication that the ground floor flats are second homes, or vacant/empty homes, or short-term lets; indeed, they are understood to be owned and rented out by Fyne Homes. As such, it is reasonable to conclude that they are permanent residences. Castle Street is predominantly residential in character with available records indicating that there are only ten second homes and six empty homes (including the review site) in a street that goes from No. 1 to No. 67 and that contains many flatted properties. The STL licence for the flat in question allows for use by eight persons and this exceeds the number of occupants that one would normally associate with a three- bedroomed flat.
Page 7
Classification: OFFICIAL The property is accessed via a common entrance shared with other residential properties and, therefore, its use as an STL would introduce an increased frequency of pedestrian movements through the shared entrance. This use would result in visitors arriving and staying at the premises for relatively short periods of time on a regular basis throughout the year in a manner that would be markedly different from the pattern of movements associated with permanent residents. There is no guarantee that guests would not come and go frequently throughout the day and night, and transient visitors may have less regard for the amenity of neighbours than individuals using the property as their principal home. The availability of the garden as an external space for congregation and the number of people in the flat potentially able to use this area (up to eight) is also likely to be of detriment to the adjoining properties. The additional servicing associated with operating a property as an STL compared to that of a residential use is also likely to result in an increase in disturbance, further impacting on neighbouring amenity. However, it is acknowledged that this would have a lesser effect as it is likely that servicing would be conducted during the daytime. Details surrounding the management of the property as an STL have been provided; however, only limited regard can be given to this. The operator is unable to have complete control over the behaviour of guests as there is no full-time, on-site management presence. The activity and noise generated by the proposed use would be significantly different than that which neighbouring permanent residents living within the building could reasonably expect and, consequently, the proposed use will have a significant detrimental effect on their living conditions and amenity. In view of the foregoing, had a Report of Handling been prepared for the application, it would have contained the conclusion that the proposal is contrary to NPF4 Policy 30(e)(i) and LDP2 Policy 23 on the grounds that it would have a significantly adverse impact on the amenity of neighbouring properties and on the residential character of this part of Port Bannatyne. It would also not have met the requirements of LDP2 Policy 14 Bad Neighbour Development. No. 5 – Roads and Traffic Comment: LDP2 Policy 40 sets out the parking standards to be applied in association with new developments. In this case, there is no off-street parking dedicated to the flat in question and none is proposed as part of the application. The number of bedrooms in the flat will not increase and the Roads Department has not expressed any concerns in relation to the continuing use of on-street parking in association with the proposed use of the property. As such, there are no objections to the proposal in the context of LDP2 Policy 40. Nos. 6 and 7 – Loss of Residential Accommodation; The Particular Circumstances of this Property; and Local Economic Benefit Comment: Please see comment on No. 2 above.
Page 8
Classification: OFFICIAL No. 8 – Emerging Council Policy Comment: At the meeting of the full Council on 24th June 2026, Members agreed that officers should undertake a public consultation on introducing Short Term Let Control Areas and on the proposed policy contained in the Committee report for use in determining planning applications for the use of dwellings as Short Term Lets both inside and outside of the proposed Short Term Let Control Areas. The public consultation exercise has not yet commenced and, therefore, it is not possible to give this matter any weight in reaching a decision on this review. No. 9 – The existing framework remains capable of being applied Comment: Please see comment on No. 3 above. No. 10 – Consequences of continued non-determination Comment: The contents of this section of the appellant’s submission are noted. CONCLUSION Section 25 of the Town and Country Planning Act 1997 requires that all decisions be made in accordance with the development plan unless material considerations indicate otherwise. Notwithstanding the lack of certainty set out above in assessing the proposal under NPF4 Policy 30(e)(ii), officers are of the opinion that an appropriate consideration of the development can be carried out in the context of NPF4 Policy 30(e)(i) and LDP2 Policy 23. Having regard to the comments in Point No. 4 above, officers would have concluded that the proposal contravened NPF4 Policy 30(e)(i) and LDP2 Policies 14 and 23 for the following reason: The proposal, by virtue of the means of access to the flat through a shared passageway off of which are two ground floor units, the noise resulting from the excessive number of pedestrian movements associated with the short term letting use and the relatively sizeable area for outdoor congregation in close proximity to neighbouring properties, is contrary to NPF4 Policy 30(e)(i) and LDP2 Policies 14 and 23 on the grounds that it would have a significantly adverse impact on the amenity of neighbouring properties and on the residential character of this part of Port Bannatyne.
Page 9
Classification: OFFICIAL APPENDED DOCUMENTS • Appendix 1 - Argyll and Bute Council Roads Consultation Response dated 19th June 2026 • Appendix 2 - Comments received on 21st June 2026 from Contributor – Mr Robert Black • Appendix 3 - Argyll and Bute Council Development Policy Team Consultation Response dated 10th September 2026 • Appendix 4 – Site Visit Photographs dated 19th June 2026
Page 10
Classification: OFFICIAL Appendix 1 – Roads Consultation Response 19.06.2026
Page 11
Classification: OFFICIAL Appendix 2 – Contributors Comments 21.06.2026
Page 12
Classification: OFFICIAL Appendix 3 - Policy Consultation Response 10.09.2026 Argyll and Bute Council Comhairle Earra Ghàidheal agus Bhòid Memo Development and Economic Growth Date: 30 September 2026 To: Steven Gove Your Ref: 26/00888/PP Our Ref: ML/BACPOLINQ From: Mark Lodge Extension: 4280 CHANGE OF USE OF FLAT TO SHORT TERM LET AT 43A CASTLE STREET, PORT BANNATYNE The above application relates to a first floor, three-bedroom flat which forms part of a range of 2 storey traditional flatted properties at Castle Street, Port Bannatyne. Access to the flat is gained from a common close which serves the two ground floor flats in the block, and then by an external staircase which provides access to the first floor flat. There is only one flat on the first floor. The surrounding properties are predominantly traditional tenemental flatted properties, and the area is essentially residential in character. Port Bannatyne is classed as a village/minor settlement in terms of Local Development Plan 2 settlement strategy and includes a primary school, post office/shop/café, and Public House. There are also a number of other facilities including a children’s play space, playing fields and a boatyard/marina. The community therefore provides a range of facilities to meet the everyday needs of residents, as well as some which may also appeal to visitors. This application for change of use of a residential flat to allow for short-term letting requires to be assessed against all relevant development plan policy. The development plan includes NPF4 and the Adopted Local Development Plan 2. In particular I would refer to NPF4 Policy 30 – Tourism, part e) which states: Development proposals for the reuse of existing buildings for short term holiday letting will not be supported where the proposals will result in; i) an unacceptable impact on local amenity or the character of a neighbourhood or area; or ii) The loss of residential accommodation where such loss is not outweighed by demonstrable local economic benefits. With regard to part ii) above from a Development Policy perspective, • The Council declared a housing emergency in June 2023. • The property is of the type and size which is suitable to meet identified housing needs of first-time buyers and key incoming workers.
Page 13
Classification: OFFICIAL • It is located in a small settlement, where facilities such as the primary school, local shop and post office, and community owned pub and hub are available and where the use of the property as a primary residence supports the provision of these services year-round. The applicants have provided little evidence with their application to demonstrate tangible local economic benefits from the proposed use of the property as a short term let, but have referred to LDP2 Policy 23 Tourist Development, Accommodation, Infrastructure and Facilities as providing support for their application. This policy refers to new or improved tourist facilities and accommodation; it is designed to support the provision of new facilities or the upgrading of existing tourist accommodation and facilities. It not applicable to the change of use of residential accommodation to tourist accommodation as this should be assessed against policy 30 of NPF4. I trust this provides an appropriate policy response to allow the application to be determined. Mark Lodge Team Leader Development Policy.
Page 14
Classification: OFFICIAL Appendix 4 – Site Visit Photographs Front elevation on Castle Street – Property that the review relates to is the top two windows on the white façade. Entrance from street is via the pend.
Page 15
Classification: OFFICIAL Rear view of the property, entrance via steps and the main door
Page 16
Classification: OFFICIAL View of entrance via pend – Note lower two flats have an entrance from the pend
Page 17
Classification: OFFICIAL View of the easternmost upper floor window of the flat (below the chimney) and the patio, neighbouring flat below and adjacent neighbouring flat
Page 18
Classification: OFFICIAL View of the drying green, westernmost upper floor window and the neighbouring block of flats