Figures reveal economic impact of short-term lets

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.

Angus’s short-term let sector, despite regulatory challenges, is performing well, generating £14.5m GVA per annum and supporting 493 jobs in the local area.

Guests staying in self-catering accommodation, termed ‘secondary lets’ in Scottish STL legislation, also spend more than the average visitor to Angus, 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.

The company claims 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 Angus, 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; across Angus, they generate £14.5m GVA and provide 493 jobs; the annual GVA associated with an average owner-occupier/private rented household in Angus was £10,093, compared to £48,366 or a two-bedroom STL; STLs make up a tiny proportion of Scotland’s housing stock, with self-catering accounting for just 0.8%; secondary lets account for a small proportion (0.4%) of the total dwellings in Angus, compared to 4.2% 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.

The findings have been shared with Scottish Government Ministers and officials.

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. 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, added: “This is yet more compelling evidence that short-term lets aren’t the main contributor of the housing crisis but are turbocharging local economies. However, this windfall is at risk from heavy-handed regulation.

"Angus Council should take heed of the report’s findings when considering their approach to planning policies and control areas to ensure the small number of valuable short-term lets are protected.”