28th April 2026
Early indications suggest that the introduction of a Short Term Let Control Area (STLCA) for Badenoch and Strathspey has slowed the growth of secondary short-term lets across the area.
The STLCA for Ward 20, which covers Aviemore, Carrbridge, Boat of Garten, Dalwhinnie Grantown-on-Spey, Kingussie, and Newtonmore, has been in place for two years and was one of the first to be designated in Scotland.
The ward has historically seen a high proportion of properties sold to buyers from out with the local area.
Within a STLCA, planning permission is required to change the use of an existing dwelling house - where the owner does not live - to a short term let. Control areas help local authorities manage levels of short-term letting where it impacts the availability of housing for local people, or the character and amenity of neighbourhoods, ensuring homes are used to best effect.
Analysis of data available since the Badenoch and Strathspey area was designated as an STLCA suggests:
Fewer new-house builds are being converted to short-term lets, in contrast to other areas in Highland.
Fewer properties being sold are being converted to short-term lets, in contrast to other areas in Highland.
The number of dwelling homes registered as short term lets is either declining, remaining constant, or rising more slowly than the Highland average, across the area.
These early indications suggest the STLCA has potentially influenced some short-term let operators to exit the sector and deterred some new entrants from investing in residential properties for short-term let use in the area.
Members of the Badenoch and Strathspey Committee (Monday 27 April) welcomed the update, acknowledging the current data available. They noted the area had not lost any capacity in terms of Short Term Let availability since the introduction of the control area, the importance of supporting STL owners in the area, and ensuring a balance between STLs and residential properties.
Trends will continue to be monitored as more data becomes available, alongside the housing need and demand assessment for Highland.
Other Major Changes In Highland For Second Home Ownership
There are several major policy changes in the Scottish Highlands (and Scotland generally) that are already slowing, or likely to slow, people buying property purely for letting or second-home use.
Huge rises in second-home council tax
This is the biggest immediate change.
From April 2026, the Highland Council second-home tax jumps to 300% of normal council tax
Planned increases:
350% in 2027
400% by 2028
In practice:
You could be paying 3–4× normal council tax every year.
This follows new Scottish rules allowing councils to set very high (even uncapped) premiums
Impact:
Strong deterrent for second-home buyers
Reduces profitability for holiday lets unless income is very strong
Already influencing buyer behaviour and supply
Mandatory short-term let (Airbnb-style) licensing
Since October 2022 (fully enforced now):
You must have a licence before taking bookings
Applies to:
Holiday cottages
Airbnb-style lets
Rooms or whole properties
Licences must be renewed periodically and meet safety/management rules
Impact:
Adds cost, admin, and risk
Some properties may fail to qualify
Slows down new entrants into holiday letting
Planning permission & control areas (tightening further)
New and proposed controls:
In Short-Term Let Control Areas, you will:
Always need planning permission to convert a home into a holiday let
New control areas (e.g. Inverness) are being proposed/expanded in 2026
Impact:
You may buy a property but not be allowed to let it short-term.
Adds uncertainty and slows investor demand.
Political direction: fewer second homes
The overall policy direction in Scotland is clear:
Aim: free up housing for locals
Concerns:
Second homes pushing up prices
Communities hollowed out in rural areas
Ongoing political discussion includes:
Further restrictions in tourist hotspots
Possible limits on licences or numbers of lets
Impact:
Policy risk is rising
Investors face an uncertain long-term environment
Market reality: mixed signals
Interestingly:
Demand for Highland holiday lets is still very strong (top UK region for bookings in 2026)
But…
Regulation + tax is increasing faster than demand growth
So the market is:
Strong for existing compliant operators
Riskier for new buyers
What this means for someone buying to let
It’s getting harder because:
Much higher fixed costs (tax)
More regulation (licensing + planning)
More uncertainty (future policy tightening)
It still works if:
The property qualifies for business rates (holiday let rules) instead of council tax.
You have high occupancy and pricing power.
You’re in a proven tourist hotspot.
The Highlands are not banning property investment, but:
The model is shifting from “easy holiday let profits” to “regulated, higher-cost, professional operation”.
More
Caithness does not have Short term let controls as yet.
Current designated Short-Term Let Control Area
There is only ONE active control area in the Highlands:
📍 Badenoch and Strathspey (Ward 20)
Covers places like:
Aviemore
Kingussie
Grantown-on-Spey
In force since 4 March 2024
👉 This is the only part of the Highlands where you automatically need planning permission to turn a property into a full-time short-term let (secondary letting).
Confirmed by Highland Council:
“There is currently one designated… control area… Badenoch and Strathspey”
Areas likely coming next (NOT active yet)
These are proposed / being consulted, but not yet in force:
Likely future control areas:
Inverness (city area)
Lochaber (e.g. Fort William)
Skye and Raasay
Sutherland
Wester Ross, Strathpeffer & Lochalsh
There is already:
A formal consultation planned for Inverness in 2026
These could come in over 2026–2027, depending on consultation outcomes.
What this means in practice
Right now:
Only Badenoch & Strathspey = strict planning control
Everywhere else:
Licensing still required
But planning permission only sometimes needed (case-by-case)
But realistically:
The Highlands are moving toward much wider control
The council has already agreed to expand control areas step-by-step.