Impact of short-term let regulations on mental health in Scotland’s self-catering sector: a policy-oriented framework for future resilience

Abstract

Scotland’s self-catering sector faces significant challenges from recent regulatory changes, especially new short-term let (STL) licensing and planning requirements. These measures have intensified mental health pressures on operators, as shown by a pulse survey from the Association of Scotland’s Self-Caterers (ASSC), revealing widespread stress, anxiety and economic insecurity. Economically, the STL sector is crucial; Edinburgh’s short-term lets alone generated £154 million in gross value added (GVA) in 2023 and supported 5 580 jobs, a contribution exceeding that of similar residential properties. Projected nationally, these figures underscore the economic risks Scotland may face if STL availability continues to decline. Through a mixed-methods approach, this article examines STL regulations’ dual impact on operator mental health and the economic sustainability of Scotland’s self-catering industry. In response to these intertwined challenges, the article presents a forward-looking, policy-driven framework. This framework is designed to enhance operator well-being, strengthen economic resilience within the sector, and support sustainable tourism growth over the long term. Key findings indicate that, if current regulatory trends continue, there is a substantial risk of reduced economic contributions from the self-catering sector and worsening mental health challenges among operators, both of which could significantly impact the viability of the industry across Scotland.