A council report presented to elected members this week recommended a short-term let control area be established in Highland Perthshire and the northern half of Eastern Perthshire.

The approval would have seen the local authority follow in the footsteps of the City of Edinburgh Council and Highland Council in using the 2021 legislation allowing Scotland’s local authorities to designate short-term let control areas where deemed necessary.

The zone would have required owners to obtain planning permission if they wanted to turn their homes into holiday rentals and let them out via platforms such as Airbnb and Booking.com.

Supporters said it would have helped to address a shortage of affordable homes in highland Perthshire and parts of eastern Perthshire.

However, the council’s environment and infrastructure committee knocked back the proposal on Wednesday by eight votes to seven.

Fiona Campbell, CEO of the Association of Scotland’s Self-Caterers, said: “We are pleased that common sense has prevailed. The plans did not strike the appropriate regulatory balance and would have led to the closure of many small businesses – hitting the local economy in the process – without achieving the apparent policy objectives.

“Short-term lets cannot continue to be used as a convenient scapegoat for much wider housing challenges. Closing down small businesses in Perth & Kinross would not lead to a glut of affordable homes as today’s vote recognised.

“The ASSC wants to ensure a fair and proportionate approach for business, tourism and communities and we will work constructively with Perth & Kinross Council to achieve that end.”