Two-thirds of Highlands short term lets operators left stressed by red tape

The Scottish self-catering industry highlights the lived experience of their members across the country with shocking new survey results including for operators based in the Highlands.

A membership survey conducted by the Association of Scotland’s Self-Caterers (ASSC) shows that the Scottish Government’s short-term let regulations are causing a mental health crisis amongst small business owners.

Around 450 operators were questioned by the trade body this past month in an online survey as it continues to gather evidence around the impact of STL regulations.

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Around one-in-ten (11 per cent) respondents across Scotland said they had experienced no mental health issues as a consequence of regulatory changes.

Those in the Highlands were amongst those most likely to report mental health problems, with 63 per cent stating this was the case.

The overwhelming sentiment is that the regulations have created financial strain, as well as increased anxiety and uncertainty, with sectoral discontent abundantly clear.

In terms of the key findings:

• Across Scotland, over two-thirds (68%) had either experienced a ‘negative’ or ‘extremely negative’ impact on their mental health and wellbeing from recent regulatory changes.

• Nearly two-thirds (63%) of operators in the Highlands saw their mental health impacted. This was higher than the equivalent figures for those in Perth and Kinross (56%).

• The professional and personal strain is taking its toll. Several respondents highlighted the emotional toll, such as sleeplessness, anxiety, stress-related health issues, and feelings of helplessness, especially with the uncertainty of future income and business viability. Many respondents also mentioned the high cost of compliance, administrative burdens, and delays in licensing applications, particularly for those relying on self-catering as their primary income.

Conscious to such issues, the ASSC said the industry has attempted to work with national and local government to address the outstanding challenges to the regulatory framework but often to no avail.

Most recently, Highland Council has had to review and update elements of their short-term let policy following consideration of James Findlay KC’s legal opinion as well as their own legal advice.

This means that short-term let licence applications that were submitted before the commencement of the STL Control Area on 4th March 2024 will be processed without the council requiring evidence of planning permission.

Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, commented: “Running a small business can be a rewarding experience but the last few years have been gruelling with the pandemic and cost of living crisis bearing down on everyone.

“What is causing particular anguish is the ominous threat that livelihoods will be snatched away due to heavy-handed government regulation, especially with the conflation of licensing and planning requirements.

“Our survey highlights widespread concern amongst operators throughout the Highlands, with a clear negative impact on mental health due to recent regulatory changes.

“It has to be remembered that these very same individuals suffering mental anguish have dedicated their working lives to ensuring this region remains a welcoming destination.

“Well-managed short-term lets can easily coexist within communities while contributing meaningfully to local employment and the economy.

“Indeed, tourism is a leading economic driver in the Highlands, with self-catering businesses boosting many rural and remote communities.

“Given their strenuous efforts and commitment to improving our visitor offering, they deserve much better than this.”

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