Barra second homes placing a 'stranglehold' on communities

During lockdown properties on the Western Isles were selling within 48 hours, at prices locals say few can afford.

Council tax statistics show that as of September 2022, there were 24,287 second homes in Scotland, around 1% of all homes in Scotland. 

However, the figures does not include those that are used as holiday lets.

Around 175 properties on Barra, in the Outer Hebrides, are believed to be second homes that are lying empty for more than seven months of the year, while dozens on the island are on the waiting list for a home.

"Can you imagine how much more vibrant the community would be with a fraction of these houses," says Sarah MacLean, manager of Bùth Bharraigh Ltd, a social enterprise that provides goods and services for tourists and locals.

"These islands have lots of opportunities but ownership of second homes are placing a stranglehold on the community and development and we can’t move forward if people cannot get housing.

"The balance needs to be redressed and we are in an unsustainable position at the moment, where businesses are struggling for employees."

She said home care was one in area, in particular, facing shortages of workers.

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"We have got an employee in a situation where she may have to leave the island if she doesn't get a home.

"That's not good for the island.

"When properties do come on the market, they go for silly money," she added, "But that is the same for all the Highlands and Islands. We are not special.

"It is a massive problem for young people and single people and people who want to live and work here.

"I do get it, folk want to keep the homes they have inherited but I'm sure they would like a community to come back to," she added.

She said the problem was "a lot more complicated" than simply owning a second home, acknowledging that many who wish to pass on homes to children do rent them out in the meantime, making them available to visitors and tradesmen which boosts tourism and jobs.

However, the fact that it is significantly more lucrative to rent to holidaymakers means the private rental market on the islands is non-existent.

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Many young people are said to be taking to living in caravans which may not be suitable for the weather or sustainable long term. 

Six properties for social rent were recently completed in Barra and six more are planned while a project is also under way to do the same on the island of Colonsay.

However, Ms MacLean says more could be done if a dedicated island housing association was set up.

She added: "There is also the whole issue of access to land.

"There are a lot of crofts sitting un-used and if that was made available then people could build their own houses."

Scotland's First Minister Humza Yousaf has said he will give local authorities the power to force owners of second homes to pay higher council tax bills.

The additional charge would be applied to any second homes which are not rented out and are not someone’s main residence. 

Cornwall, which has 16,000-holiday lets and 15,000 people on its social housing list, is pushing through plans for second home owners to pay double council tax. 

A licensing scheme has also been introduced in Scotland for short-term lets to address over-provision. 

Some politicians think the Scottish Government should go further. 

"There are places in the Western Isles where buying a house is impossible for members of the community," says Alasdair Allan, SNP MSP for the Western Isles.

"It's calmed down a bit but during lockdown it got completely out of hand where houses were being advertised and were never, literally never, on the market for longer than 48 hours and were never being bought by anyone on the islands.

"Some of the issues could be solved if there was a supply of rented housing.

"There is no private rented sector at all. Anyone who is renting is renting to tourists by the week.

"There are a fair number of empty and completely unused houses.

"The other issue - and I'm not just thinking of Barra here, it affects the whole of the Western Isles  - is short-term lets.

"There is obviously a system of regulation being introduced for short-term lets. 

"I think we should look at taking that further and specifically empower local authorities to say that there are enough local homes in community X.

"The problem isn't people building second homes, like people do in Norway and Sweden, the problem is when whole villages get taken over by second homes.

"The other issue is house prices themselves, which is a bit more complicated so you get the phenomenon of retirees who have sold a house in the city and are therefore able to offer money for a house that no local can.

"One thing that is happening is there are moves to double or treble the amount of council tax paid on second homes."

He said a significant amount of money - £45million - had been made available from the Scottish Government for socially rented housing.

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"But the question is, do these houses get built in the easy places in towns like Stornoway or do they get built in the difficult places to build houses like Barra or Harris where house building prices are higher and land is more difficult to come by.

"Ir's about making sure that things are happening on all these different fronts and it's very different from place to place in the Western Isles."

Donna Young of Rural Housing Scotland, who lives in Uist, says more rented accommodation is not the complete answer.

She said: "Everyone has the right to own their home if they wish.

"Why should it be any different simply because we live on an island?"

Angus McNeill, SNP MP for Barra says many people have had to leave islands for economic reasons but wish to keep properties because they hope to return.

He said there are plenty more second homes in Norway but this is offset by the availability of first homes.

He said: "You have the community who live here some of the time, the community who has connections here and the community that have a genuine second home and have no connections.

"Everybody has bought their house legally and legitimately.

"But everyone will agree that there is a problem with the first circle, the people who are living and working here who find they can't compete with buying houses with people who are earning salaries elsewhere.

"The issue is very complex. In some areas there is an issue with planning and Argyll and the Highlands are worse for this. Zoned land for planning which artificially inflates prices."

Western Isles Council says it is closely monitoring the short-term let sector.

A spokesman added: "Once the licensing scheme has been fully implemented there will be robust data available to help determine whether any controls, including Short-term let Control Areas, need to be considered."

Yvonne Flynn, who lives in Glasgow's West End, bought a static caravan on the isle of Arran last year, where around 40% of properties are second homes or short-term lets. She says more should people should consider this as a reponsible alternative.

She said: "Caravans these days are so lovely and they are a super option for people just looking for a holiday home.

"You have all the benefits of having your own place - somewhere you can escape to but you are not taking over a property that could be bought and lived in by local people or people who want to go there and live and work.

"I think people should seriously consider their options, rather than just rushing to buy up properties, especially in the current climate."

Fiona Campbell, Chief Executive of the Association of Scotland’s Self-Caterers, says there is a need to differentiate between second homes which are only used by the owner and of limited economic benefit to local communities and short-term lets, which bring in much needed revenue.

The latest figures show there are 17,794 self-catering units on Non-Domestic Rates, which generate 2.4 million visitor nights per year; £867.1m total visitor spend; and support 23,979 jobs.

"Those scapegoating short-term lets for wider housing problems should be careful what they wish for", said Mrs Campbell.

"Regulating them out of the market (which we are already seeing happening) won’t lead to a rush of affordable homes but instead increase second home ownership, as well as the use of gas-guzzling campervans impacting local infrastructure, while also damaging the economy.

"If we are worried about housing we need to look at it holistically: empty homes, second homes, house building and affordable housing policy.

"Is licensing the answer? Will it meet the policy objectives? Or will it lead to more second homes, and campervans on the roads."