A Highland Council report has concluded that a formal control zone for short-term lets “may be justified” on Skye and Raasay, as pressure on local housing continues to intensify.
Councillors will review the findings next week, with the proposal aimed at limiting the growing number of homes switching from residential use to Airbnb-style holiday accommodation. If introduced, the zone would require homeowners to obtain planning permission before converting any property into a short-term let.
The report highlights that new-build homes on the islands are transferring into the holiday-let market at a notably higher rate than across the Highlands more broadly. On Skye and Raasay, 15.5% of new properties are moving into short-term letting, compared with lower figures in other parts of the region.
Skye and Raasay, home to around 10,500 residents, continue to attract high levels of tourism. Almost 800,000 visitors spend an estimated £119m in the area each year, according to recent data from the Highland Community Planning Partnership. While the economic impact of tourism is significant, officials say the growing shift toward holiday accommodation is exacerbating a shortage of affordable homes for local people.
In their assessment, council officers wrote: “Relative to other areas of Highland, and to Highland as a whole, there is a high rate of potential dwellings being used as short-term lets in Skye and Raasay, particularly in the most western areas.” They noted a tighter housing market, higher proportions of external buyers, and reduced affordability compared with much of the wider Highlands.
Councillors previously agreed that decisions on controlling short-term lets should be taken locally rather than through a single Highland-wide scheme. Officers have reiterated that position, stating there is unlikely to be broad regional support for a universal control area. Instead, they recommend a “tailored approach” allowing individual area committees to determine whether restrictions are appropriate.
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Work is already under way on potential measures in Lochaber, while councillors have ruled out similar steps in Caithness. A control zone is also being explored for Wester Ross, Strathpeffer and Lochalsh.
If approved, the proposed Skye and Raasay zone would become one of the most significant local actions aimed at balancing tourism-driven demand with the long-term sustainability of island communities.
