Short-term lets control zones considered for coastal Fife 'ghost towns'

Fife councillors have asked for more information after claims that short-term let properties are creating “ghost towns”.

Fife Council officers from across four services said there is “no evidence” that short-term let (STL) control zones would provide the answers or solutions that overwhelmed communities seek.

Cabinet Committee councillors unanimously requested more information about the process.

According to some councillors, such as Fiona Corps, Lib Dem, East Neuk, and Landward, STLs—a type of Airbnb or guest accommodation—are gutting local coastal communities across the Kingdom.

“I think we hear all too much about the tourism industry and very little about the local people,” Cllr Corps said.

She believes STLs are partly to blame for the “steady decline” in local school roles because “families can’t afford to stay local”.

“It’s clear from figures that St Andrews, Elie, Earlsferry, and the East Neuk area all have unacceptably high percentages of short-term lets in comparison to surrounding areas,” she said.

“The issue is here now, and people want to see action now.”

Fife Council has granted 2,027 short-term let licences since a licensing scheme went live in October 2022.

Of those, 719 are in Largo and East Neuk, representing 8% of the total housing stock.

Elie and Earlsferry have the greatest concentration of STLs in Fife – 18.6% of all houses in these villages are registered STLs.

It’s the only place in Fife where the total percentage is above 10%.

“If you want to see any conclusive evidence [that STLs are impacting communities], you just have to visit [Elie and Earlsferry],” Cllr Corps said.

“It is pretty much a ghost town. There are no shops or anything left anymore, and people are living with no neighbours and a very small school.”

That’s why councillors from these communities are pushing the council to get control of STL numbers.

However, yesterday, officers from housing, planning, legal, democratic, and protective services argued that STL control areas would not do what councillors and communities want them to.

They said control zones would not cap the number of STLs allowed in an area and would not impact any currently operating ones.

Pointing out it would simply force new STLs to gain approval through the council’s planning process.

“Introduction of a control area doesn’t bring any new reasoning for refusal,” Craig Walker, the lead officer for policy and place, said.

“It’s not a ban or a moratorium, it can’t place a cap on STL numbers, and it can’t address affordability – which is also the principal issue for housing in East Neuk and St Andrews.

“It won’t increase the provision of affordable housing, and it can’t provide a presumption against planning proposals.”

He also emphasised that 96% of all STL planning applications have been approved within Fife in the last five years.

Councillor Altany Craik, Labour, Glenrothes West and Kinglassie, supported yesterday’s call for more information but also urged caution.

“Just because it has a rather good name, it doesn’t actually do what it says on the tin as well as we’d like,” he said.

“People facing these issues on the ground want it to mean control, and no more short-term lets if there’s too many, but control zones don’t change the number that is already there, and it doesn’t change second homes.”

He added: “We need to be careful that we don’t create expectations amongst communities that this is going to solve their problems.”

The committee openly acknowledged that control areas are not a golden solution for Fife’s housing problems, but they nonetheless believed it was a step in the right direction to protect Fife’s coastal communities.

“No one is claiming that it would provide a definitive solution,” Cllr Jonny Tepp, Lib Dem, Tay Bridgehead, said.

“However, it could provide a contribution to solve those issues, which is probably why two other councils [Edinburgh and Highlands] felt they were worth pursuing.”

Cllr Corps and Councillor Brian Goodall, SNP, Rosyth, made two separate recommendations to progress short-term control areas in Fife.

After a short break, they found a compromise that will see a paper prepared for a Cabinet meeting in April.

The report will propose a process to “take forward the consideration of the need for an STL control area” in Fife.

If the cabinet decides to move forward with STL control area plans, the full Council will be asked to devolve the power to evaluate and designate control zones to the area committees in May.