Isles have the highest level of inactive empty homes​

The findings were accompanied by a rallying call that Comhairle nan Eilean Siar sit up and take notice, both in understanding the importance of the sector, but also in addressing the real issues over the housing crisis.

The study was by BiGGAR Economics and found that short-term lets provide a major economic contribution, but that recent changes – including the introduction of a tourism tax – could prove counter-productive.

According to the report, the market contributes nearly £1bn gross value added to the Scottish economy while supporting approximately 30,000 jobs. At a local Western Isles level, it generated £19m GVA, supporting 646 jobs.

According to the report, in every local authority area, economically inactive empty homes account for a larger number of total dwellings than secondary lets. And in the Western Isles, the level of empty homes was way larger than the national average.

“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,” the report said.

“In every local authority area including Comhairle nan Eilean Siar, economically inactive empty homes account for a larger proportion of total dwellings than from secondary lets.”

Graeme Blackett, Director of BiGGAR Economics, said: "Our research also concluded that it was clear that secondary lets are not a driver of the wider Scottish housing market. 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 instead turbocharging local economies, including in our remote and island communities.”

She said that it was clear from the report that short-term lets in the islands “generate an impressive £19m per annum and support hundreds of local jobs”.

“However, this windfall is at risk from heavy-handed regulation,” she continued. “Comhairle nan Eilean Siar should take heed of the findings when considering their approach to planning policies and ensure the relatively small number of valuable short-term lets are protected.

“The Western Isles has the highest proportion of empty homes as a percentage of total dwellings in the whole of Scotland. Unlike valuable short-term lets, these economically inactive properties offer no community benefit and need to be returned to more productive use.

“For policymakers, the message couldn’t be clearer: you can’t solve a housing crisis by producing a crisis in Scottish tourism by decimating local businesses that underpin local economies. Attention must shift to the real causes of the housing crisis.”

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