The owners of a Perth restaurant fear the council’s short-term let policy could destroy their property business.
Lee and Margo Deans noticed that diners at their city centre restaurant were unable to find high-end tourist accommodation in Perth.
So five years ago they set up Deans Retreats, leaving Lee’s brother Jamie to manage Deans Restaurant in Kinnoull Street.
Deans Retreats has built up a portfolio of nine flats that are all advertised for short-term lets on Airbnb.
But now the company fears its property business – along with many others – could be destroyed if Perth and Kinross Council’s new short-term lets policy is implemented.
Short-term lets need door access and four bedrooms
The council is consulting on a proposal to introduce a control area in Highland Perthshire and part of Eastern Perthshire.
It means all short-term lets need to be licensed by July 1 2024, which requires planning permission.
The council’s draft guidance indicates that short-term lets in existing residential properties need to contain four bedrooms and have their own door that leads to the street or garden.
The exceptions are when a property has existing planning permission or had this use for more than 10 years.
The consultation period ends on August 18.
However, the council has already cited this draft policy as a reason to refuse a Pitlochry application because access would have been from a corridor.
New policy would create ‘blanket ban’ for up to 90%
Lee says that all nine of his Airbnb properties face being refused planning permission under the new rules.
Only some of them have a door leading outside and none of them have four bedrooms.
“I understand and agree with the need for a short-term let licence and planning guidelines currently proposed to ensure safe operation and by fit and proper persons,” he said.
“However, if the new draft planning guidelines are implemented, this would effectively be a blanket ban across the whole of Perth and Kinross for 80% to 90% of these small business operators.”
Controls need to be localised, says businessman
He agrees there should be controls in parts of Perth and Kinross that are saturated with short-term lets.
These include towns such as Pitlochry, where short-term lets make up 12% of residential properties, Aberfeldy (20%) and Kinloch Rannoch (38%).
But this figure hovers at around 1% in Perth city itself.
Yet the council’s rules will apply to all parts of Perth and Kinross – not just the control area in the Highlands and East Perthshire.
“1% does not represent a problem to residential housing in Perth City,” added Lee, who says he has already had to pay more than £10,000 on recent planning applications.
“Why implement it across areas where it is a non issue?
“This would shut down many small businesses.”
Perth tourists ‘will have nowhere to stay’
Lee says that businesses such as Deans Retreats are required due to an unmet demand for tourist accommodation in Perth.
“From here to the end of September all our properties are pretty much full,” he added.
“Doing away with 80% of short-term lets will reduce the number of tourists coming in because they will have nowhere to stay.”
A council spokesperson said that the proposed short-term let control area and draft planning guidance was not yet an adopted policy.
They added: “The current proposed policy would refer to all short-term lets and not just those in the proposed control area.
“Any property which has existing planning permission, or which has been operating as a short-term let for more than 10 years, would not be affected by the new guidance should it be adopted.
“We invite members of the public to comment on the proposal through the consultation portal on our website; the consultation closes on Friday 18th August 2023.”
