Residents in Fife tourism hotspots will be given a say over Airbnb and other short-term let numbers.
The agreement follows fears some East Neuk communities are becoming ghost towns with few permanent residents.
In Elie and Earlsferry, around 60% of houses are either short-term lets or second homes.
And people living in certain streets are said to have no long-term neighbours.
Councillors have agreed to continue work on the possibility of introducing short-term let control areas in a bid to limit numbers of new accommodation.
Officers will analyse the situation in both the East Neuk and St Andrews.
And local communities will be consulted by the end of this year.
Council officers had recommended against the introduction of control areas.
They said it would make little difference to towns and villages already impacted by high numbers of short-term lets.
However, members ruled it could go some way towards controlling future applications.
Situation ‘urgent’ in some areas
According to Fife Council data, short-term lets make up 8.1% of the housing stock in the East Neuk and 5.4% in St Andrews.
And more than half of all house sales there are to buyers from outwith Fife.
The sector brings in £106 million a year for the Fife economy and supports more than 900 jobs.
And the paper requested by councillors will look at both the risks and benefits of introducing short-term lets control areas.
East Neuk Liberal Democrat councillor Fiona Corps said the situation in her ward has become urgent.
“I worry that in five years time we’ll be looking at these figures and they will have increased again,” she said.
“In a further 10 years we’ll say we’d better do something about this, and it will be too late.
“The issue is here now.”
‘Imagine living in a street with no neighbours’
Meanwhile, SNP councillor David Barratt said: “Some areas are at risk of becoming holiday parks rather than communities.
“Imagine living in a street with no neighbours and a constant churn of visitors, some more considerate than others.
“Visitor accommodation is important for economic activity but we need to get the balance right.
“There is clearly no silver bullet but this is one tool we have available to address a clear issue.”
Edinburgh City Council and Highland Council have already introduced short-term let control areas.
And there have been calls for Fife to follow suit.
Short-term lets control area is not a ban in Fife
However, Fife Council housing and planning officers warned against the move.
They said a control area would not apply retrospectively.
This means it will have no effect on existing short-term lets in St Andrews and the East Neuk.
It is also not a ban on future holiday lets, but means anyone who wants to use a home for this purpose in future must apply for planning permission.
Planner Craig Walker said 96% of all short-term let planning applications in the last five years have been approved in Fife.
“The introduction of a control area doesn’t bring in any new reasons for refusing planning consent,” he said.
“It can’t place a cap on short-term let numbers, it can’t address affordability and it won’t increase the provision of affordable housing.”
A decision to implement a short-term let control area must have the agreement of the Scottish Government.
Conversation