Shocking extent of short-term lets in the islands revealed

The Rented Sector Reform: Island Communities Impact Screening Assessment, released on July 31, aims to improve the affordability, standards and framework of the private rented sector and assess how changes could differ for island communities. 

 

While the report concluded rented sector reforms do not have a differing impact on the islands compared to the mainland, it did show a worrying trend in the status of housing across all islands. 

 

This is despite both social and private renting being less common in island constituencies than the national average, with the exception of a higher amount of social renting in North Ayrshire.

 

The report reads: "Emerging data on applications for short-term lets licences show that by December 2023, the six island authorities had received and validated 4,575 applications, accounting for 31 per cent of the Scotland total of 14,539.

 

"Although this data does not include all applications that have been received by local authorities as some are still being processed and validated, it does suggest these local authorities are likely to have proportionally higher numbers of short-term let licences compared to the rest of Scotland."

 

Island authorities only have 9.6 per cent of the Scottish population and the islands themselves only make up two per cent of the population. Yet they have almost a third of new short-term lets. 

 

The same goes for second homes; 0.9 per cent of homes in Scotland are registered as second homes, yet in island authorities, the figure is consistently higher, the biggest difference being in Argyll and Bute, where 6.6 per cent of dwellings are second homes. 

 

Argyll and Bute has seen a high number of new holiday homes. According to council figures, it received 3,205 short-term let applications as of August 2024, 2,118 of which are still to be processed. 

 

The council has issued 584 licences in 2024 and receives new applications almost daily. In July, for example, 29 were submitted. 

 

A council spokesperson said: "We have received more than 3,200 short-term licence applications and our newly formed team is working hard to process these.

 

"We are currently considering our ’deemed applications policy’ as many of our applications will be deemed to be granted after September 2024, pending final determination.

 

"We have been in discussions with the Scottish Government and other local authorities and await legal advice.

 

"This process will be subject to a revised Short-term Let Policy that will go to the full council for approval, alongside other legislation changes. We will provide further information to applicants shortly to reassure them they can continue to operate until their applications have been determined."

 

Island coastlines are well-known holiday destinations nationwide, but for an area with such a small share of the population, the share of holiday homes is disproportionate. 

 

These figures also contribute to the higher cost of living in the islands, which this report also acknowledges and estimates to be more than £3,500 more expensive for a standard two-child family, and £2,300 more expensive for lone pensioners. 

 

Housing is the single most pressing issue faced in the islands, hence the introduction of The Rural and Islands Housing Action Plan in 2023, following the wave of local authorities declaring a housing crisis.

 

Under this plan, the Scottish Government aims to construct 11,000 affordable homes in rural and island communities by 2032.