BiGGAR Economics challenges false narratives surrounding Scotland’s self-catering sector now at risk from heavy-handed government regulation.
A new independent analysis from a respected Scottish consultancy reveals the substantial positive economic impact of Scotland’s self-catering industry which was also shown to have a negligible effect on housing.
BiGGAR Economics calculated that short-term lets (STLs) contribute nearly £1bn gross value added (GVA) to the Scottish economy while supporting approximately 30,000 jobs.
By accommodating visitors, STLs generate economic activity across Scotland, with the local impacts exceeding residential use, supporting an additional £32,400 GVA per property.
The localised results were just as impressive.
Moray’s short-term let sector, despite regulatory challenges, is performing well, generating nearly £10m GVA per annum and supporting 314 jobs in the local area.
This follows welcome news that tourism is now worth a record £187m to the local economy after a 25% increase in visits between 2022 and 2023.
Guests staying in self-catering accommodation, termed ‘secondary lets’ in Scottish STL legislation, also spend more than the average visitor to Moray, with knock-on gains for related tourist and hospitality businesses.
Alongside this huge economic boost, the researchers also highlight that self-catering accounts for less than 1% of the country’s total housing stock.
This challenges the narrative that STLs are fuelling Scotland’s housing crisis, with self-catering at only 0.8% of the country’s housing stock, too low a proportion to have a meaningful impact on local housing markets.
Moreover, according to the report, in every local authority area including Moray, economically inactive empty homes account for a larger proportion of total dwellings than from secondary lets.
The key headlines include:
- STLs are estimated to generate £864m GVA and support 29,324 jobs across Scotland in 2023.
- In Moray, the figures stand at £9.3m GVA and 314 jobs
- The annual GVA associated with an average owner-occupier/private rented household in Moray was £12,627, compared to £14,484 for a two-bedroom STL; and
- STLs make up a tiny proportion of Scotland’s housing stock, with self-catering accounting for just 0.8%. This is considerably less than the 3.6% that economically inactive empty properties account for.
- Secondary lets account for 1.3% of total dwellings in Moray, compared to 3.8% for empty homes.
This study comes as the Scottish Government published an implementation update report on STL licensing which the industry maintains did not adequately address their longstanding concerns.
BiGGAR’s new analysis is based on the best available evidence on STLs in Scotland.
The findings have been shared with Scottish Government Ministers and officials, as well as Moray Council.
Graeme Blackett, Director of BiGGAR Economics, said:
“This report shows that secondary lets make an important contribution to Scottish tourism and economy overall, supporting almost 30,000 Scottish jobs.
“Our research also concluded that it was clear that secondary lets are not a driver of the wider Scottish housing market.
“If short-term let regulations leads to a reduction in the supply of secondary lets, that will have a negative impact on the tourism economy, without delivering any solutions to Scotland’s wider housing challenges.”
Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said:
“This is yet more compelling evidence that short-term lets aren’t the main contributor of the housing crisis but are instead turbocharging local economies.
“This is evident in Moray where STLs generate £10m per annum and support hundreds of local jobs.
“We’re proud of the contribution self-catering has made to securing record tourism growth to the Moray Speyside region and are excited about the opportunities that lie ahead.
“However, this windfall is at risk from heavy-handed regulation.
“Moray Council should take heed of the report’s findings when considering their approach to planning policies and control areas to ensure the relatively small number of valuable short-term lets are protected.
“For policymakers, the message couldn’t be clearer: you can’t solve a housing crisis by producing a crisis in Scottish tourism by decimating local businesses that underpin local economies.
“Attention must shift to the real causes of the housing crisis.”
