Embedded Files
North Berwick Environment and Heritage Trust (NBEHT; now NB Heritage) is pleased to publish a report prepared by Mark Kummerer of MKA Economics and titled Economic Impact of Residential and Short-Term Let Properties in North Berwick. See link below.
NBEHT commissioned the report following serious concern about the significant and growing loss of housing stock to short-term lets (a commercial business use) in the town. NBEHT was concerned also that the figures relied upon by East Lothian Council on the economic impact of short-term lets on the local economy were not locally derived and were unreliable. The loss of housing stock can have an adverse effect upon the local economy and the health and wellbeing of the community. NBEHT is not anti-tourism but wishes decisions about North Berwick to be made on the basis of accurate statistics derived from this specific place.
The report is based upon locally sourced and derived data. NBEHT had asked East Lothian Council to undertake this research, but they were not interested. NBEHT is very grateful to North Berwick Trust and to North Berwick Community Council for funding the research. Our concern was that, within East Lothian Council, there was an over-reliance on Scotland-based data, rather than on local data based on what was happening on the ground in North Berwick. East Lothian Council accepts that the majority of short-term lets in East Lothian are concentrated in North Berwick.
MKA Economics had undertaken similar research in Edinburgh, comparing the economic impact of short-term lets and residential letting.
The results for North Berwick show that the numbers are growing. In May 2024 (when the data was derived), there were 445 short-term lets. This is a significant increase on the number identified in an NBEHT research report two years ago.
Briefly, what the figures show is that the economic benefit to the local economy is far less than the figures relied upon by East Lothian Council. In addition, it is important to note that the benefit to the local economy is greater for residential lettings than for short-term lets. Residential letting is better for the town's economy than short-term lets, and of course ensures that there is more housing stock for people to live in.
On the job creation front, it appears that more jobs are created by short-term lets than residential letting, but it must be remembered that jobs created by tourism in North Berwick (as elsewhere) are mainly seasonal and low grade. For a vibrant economy, the town needs permanent jobs all year round. The report author was asked about the job creation ratios and explained that less expenditure is required to generate a tourism job than a typical job, and so more jobs are created from less spend; but tourism-related jobs are valued less in Gross Value Added (GVA) terms. In short, tourism jobs can be created from lower levels of spend, but they are seasonal and lower value, which means that, ultimately, the GVA (which is the most important metric) is lower.
Another issue does not appear in this report because it is not directly relevant, but it is important. Short-term lets are businesses and, as such, their owners typically do not pay Council Tax. Most owners appear to register for business rates and are therefore zero-rated for business taxes. This means that East Lothian Council gains little, if anything, in the way of income (local taxation) from short-term lets. Indeed, the Council is effectively making a loss because owners often (we are told anecdotally) ask their rental clients to put waste and rubbish in street bins, as they are not entitled to domestic waste uplift. Of course, East Lothian Council does gain income from residential letting and ownership derived from Council Tax income.
The Scottish Government has a planning policy which requires that the economic benefit is looked at carefully. This new document allows judgements to be made using locally derived and accurate data (as of May 2024) - which has not been available up until now. The MKA report should enable balanced and better informed decisions to be made.
Read the 2024 MKA Economics Report Economic Impact of Residential and Short-Term Let Properties in North Berwick.
(August 2024)
.
North Berwick has been a holiday town since the railway arrived in the mid 19th century.
Welcoming visitors is an important part of the local character and history of the town and contributes to the local economy, although this requires some scrutiny to understand exactly where the benefits lie and where there might be impacts that are detrimental to the economic, social and environmental wellbeing of residents in the town. North Berwick is also much more than a pretty seaside town. It is a community, and a desire to find the right balance between tourism and community is at the heart of this research.
This report analyses the number, type and location of short-term holiday lets in North Berwick. It seeks to deepen understanding of the situation with local knowledge, and to locate short-term holiday lets within the matrix of local tourism and the local economy.
NBEHT raises important issues related to second homes and short-term holiday lets that affect the environment and historic character of the town and which concern local people for economic, environmental and social reasons.
The research presented here complements the initial survey carried out by ELC which informed their public consultation on holiday lets in May 2022. The analysis provides a local perspective on the value and impact of short-term holiday lets in North Berwick. Any future actions that ELC takes around second homes and short-term holiday lets, such as establishing a register of short-term holiday lets, second homes and long-term lets, or implementing a Control Area for short-term lets, should be based on robust data and community consultation.
This report contributes local knowledge and hard evidence to the information-gathering exercise that should underpin any decisions
One of our wonderful members, Rosemary Bigwood, has written a report: ‘Exploring NB on a mobility scooter’ - and it’s a delight! Full of the joys of NB, as well as being clear-eyed about the challenges for people using a mobility scooter.
Page updated
Google Sites
Report abuse