Fife Council is set to explore the introduction of short-term let (STL) control zones in its coastal communities, following claims ...

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Fife Council is set to explore the introduction of short-term let (STL) control zones in its coastal communities, following claims that holiday rentals are turning areas into “ghost towns.” A report on the potential implementation of control zones is expected to be presented at a council cabinet meeting in April.

Councillors raised concerns over the impact of high concentrations of STLs, particularly in villages like Elie, Earlsferry, and parts of the East Neuk, where holiday rentals account for a significant portion of housing stock. In Elie and Earlsferry alone, 18.6% of all homes are registered as STLs—the highest concentration in Fife.

Liberal Democrat councillor Fiona Corps (East Neuk and Landward) described the situation as dire.
“It is clear from the figures that St Andrews, Elie, Earlsferry, and the East Neuk area all have unacceptably high percentages of short-term lets compared to surrounding areas,” Corps said. “These communities are becoming ghost towns, with no shops, few neighbours, and declining school rolls because families can’t afford to stay.”

Fife has issued 2,027 STL licences since October 2022, with 719 located in Largo and the East Neuk, where they represent 8% of housing stock.

The Debate Around Control Zones

While some councillors see STL control areas as a necessary step, council officers have cautioned against high expectations. Control zones would require new STLs to seek planning approval but would not cap the number of holiday lets or affect existing licences.

Craig Walker, lead officer for policy and place, emphasised the limitations of control zones.
“It’s not a ban or a moratorium. It can’t place a cap on STL numbers, address affordability, or increase the provision of affordable housing,” he said. “Control zones may not provide the solutions communities are looking for.”

Over the past five years, 96% of STL planning applications in Fife have been approved, highlighting the challenges of using planning regulations to limit holiday lets.

Labour councillor Altany Craik (Glenrothes West and Kinglassie) expressed similar concerns.
“People want this to mean no more short-term lets if there are already too many, but control zones won’t change the numbers already in place or address second homes,” he said. “We need to be cautious about creating unrealistic expectations.”

A Step Towards Protection

Despite acknowledging the limitations, councillors believe control zones could still play a role in addressing the housing crisis in Fife’s coastal communities.

“No one is claiming it would provide a definitive solution,” said Liberal Democrat councillor Jonny Tepp (Tay Bridgehead). “However, it could make a contribution, which is why councils in Edinburgh and the Highlands have pursued similar measures.”

After discussions, councillors reached a compromise to develop a detailed proposal for review in April. This step marks progress in the council’s efforts to protect the character and viability of Fife’s coastal communities while balancing the needs of the tourism industry.

The issue of short-term lets remains contentious across Scotland, as communities struggle to balance the economic benefits of tourism with the challenges posed by high STL concentrations. Fife’s decision will likely be closely watched by other councils facing similar concerns.

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