Short Term Let Control Areas - Highland's Expanding Debate

8th January 2026

Across the Highlands, the question of who can afford to live where is becoming sharper by the year. Rising house prices, fuelled in part by the boom in short-term holiday lets, have left many young couples and families struggling to find homes in their own communities.

In response, Highland Council has begun rolling out Short Term Let Control Areas (STLCAs) — a regulatory tool designed to balance tourism demand with local housing needs.

Badenoch & Strathspey: The First Test Case
Badenoch & Strathspey was the first part of Highland to be formally designated as a STLCA. Here, the council demonstrated clear evidence that the growth of visitor accommodation was squeezing the housing market, leaving locals priced out. The designation means that anyone wishing to convert a dwelling into a short-term let must now apply for planning permission, giving communities a stronger voice in the process.

Expansion to Other Hotspots
Following this precedent, councillors have looked at other tourism-heavy areas:

Skye & Raasay - where visitor demand is intense and housing affordability is fragile.

Sutherland - where depopulation risks are heightened by homes shifting into seasonal lets.

Loch Ness - where reports suggest over 60% of locals cannot afford to buy homes.

These areas are under consultation or consideration, reflecting the council's targeted approach: not blanket coverage, but intervention where short-term lets are demonstrably undermining housing supply.

The NC500 Effect
The North Coast 500 route has added a new layer of pressure. Remote villages along the route have seen houses snapped up for Airbnb use, transforming fragile rural markets. Even a handful of conversions can distort affordability, leaving young couples behind. Councillors in Wester Ross and Sutherland are already examining whether control areas are needed here, recognising that tourism success must not come at the cost of community survival.

Inverness Latest Developments
On 7 January 2026, the City of Inverness Area Committee agreed to progress with the process of considering the introduction of two distinct Short Term Let Control Areas — one for Inverness city, and another for the wider rural Loch Ness area.

Cllr Ian Brown, Leader of Inverness and Area, said, "The decision made by Members to recommend to E&I Committee to move forward to public consultation will enable officers to gather public feedback on the matters affecting the key Wards identified as most affected. We all look forward to hearing more on that feedback in due course and would urge the public to take part in the consultation when it goes live."

The regulatory process follows three steps:

Notification and consultation.

Submission to, and approval from, Scottish Ministers.

Public notice of designation.

The next stage is for the Council's Economy and Infrastructure Committee to decide whether to formally commence consultation and evidence gathering. A briefing on the outcome will be reported back to Inverness Members.

Full details of the report can be viewed on the Highland Council website - https://www.highland.gov.uk/meetings/meeting/5285/city_of_inverness_area_committee

The spread of Short Term Let Control Areas across Highland reflects a growing recognition: tourism brings prosperity, but unchecked it can hollow out communities. From Badenoch & Strathspey to Inverness, Skye, Sutherland, and the NC500 corridor, the council is trying to strike a balance between welcoming visitors and protecting homes for locals.

The debate is far from over. Each new designation will be contested, weighing the economic benefits of short-term lets against the social costs of lost housing. But one thing is clear: the future of Highland communities depends on keeping homes within reach of the people who live and work there year-round.