Perthshire Eyes New Rules to Balance Tourism and Local Housing Needs

A significant proposal is currently under consideration by Perth and Kinross Council that could dramatically reshape the housing landscape in certain parts of the region. Residents are being invited to share their views on the potential establishment of a ‘short-term let control area,’ a measure designed to tackle the growing scarcity of affordable homes for local families.
If approved, this would mark Scotland’s third such designated zone, reflecting a national trend to regulate the booming holiday rental market. The proposed area encompasses Highland Perthshire and the north-eastern expanses of the region. Addressing the Housing Challenge
The core rationale behind this initiative stems from a noticeable surge in holiday rentals across these picturesque areas. Council data indicates that a substantial proportion of Perth and Kinross’s 1,777 licensed short-term lets are concentrated in Highland Perthshire (859 properties) and eastern Perthshire (276 properties). Particularly alarming is the reported 53% increase in short-term lets in eastern Perthshire between October 2023 and August 2025, a growth rate that highlights the urgency of the situation.
This concentration, authorities argue, is directly contributing to a reduction in available long-term rental properties and an upward pressure on property prices. The consequence is a struggle for local residents, including young families and essential workers, to secure suitable and affordable housing within their own communities. How the New Regulations Would Operate
Under the proposed framework, homeowners looking to convert a residential property into a new holiday let within the designated control area would be required to obtain planning permission. This change would align houses with the existing regulations for flats and apartments, which already mandate planning approval before conversion into holiday accommodation.
While short-term let operators currently need a licence, securing planning permission would introduce a more comprehensive review process. This would enable the council to assess broader impacts, such as the preservation of local character and amenity, and, crucially, the potential loss of residential accommodation. This holistic approach ensures that community well-being and housing availability are central to any decision-making. Lessons from Elsewhere: A Mixed Picture
Scotland has already seen the implementation of two other short-term let control areas: one covering the entire City of Edinburgh Council area and another in the Badenoch and Strathspey ward of Highland Council. The effectiveness of these measures has yielded varied results.
In Badenoch and Strathspey, reports suggest a high approval rate of 90% for applications since the system’s inception last March, prompting some housing campaigners to criticise the system as ‘not fit for purpose.’ Conversely, Edinburgh has experienced a more stringent application process, with 71% of applications being rejected since 2022, a outcome that civic leaders there believe has positively impacted local communities.
These differing outcomes provide valuable insights for Perth and Kinross as it navigates its own path, highlighting the importance of careful design and implementation to achieve desired housing outcomes. A Renewed Push for Change
This is not the first time such a proposal has been put forward for Perthshire. A previous attempt in August 2024 to introduce a similar control area for the same localities was voted down by councillors. Opponents at the time raised concerns that it would negatively impact the vital tourism economy, which many towns and villages in Perthshire rely upon. Some argued that the root cause of the housing crisis was a failure to build enough new homes, rather than the proliferation of short-term lets.
However, the concept was revitalised and brought before the full council in May of this year, where it gained majority approval, thereby initiating the current public consultation phase. The Tourism Perspective: Balancing Interests
The Association of Scotland’s Self-Caterers (ASSC) has voiced strong opposition to the proposed control area, cautioning that it could impede tourism across Perthshire. The association highlights that the self-catering sector alone supports over 1,750 jobs and injects a substantial £52 million annually into the Perth and Kinross economy.
The ASSC argues that the council should avoid ‘scapegoating small and micro businesses’ within the tourism sector. Instead, they propose a multi-faceted solution that includes proactive measures to address long-term empty properties, better regulation of second homes, and a concerted effort to increase the construction of new housing units to meet local demand. Participate in the Consultation
Perth and Kinross Council has stressed its commitment to considering public opinion before making a final decision early next year. An online survey is currently open on the council’s consultation hub, providing a platform for all interested parties to contribute their views. The consultation period is set to conclude on December 22, offering an opportunity for individuals, local tourism organisations, community councils, and other groups to shape future housing and tourism policies in Perthshire. Engagement from a wide range of voices is crucial to ensure a balanced and effective outcome for the region.

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