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Aberfeldy set for 8 new holiday flats as hostel conversion plans approved

Disused Dunolly House in Aberfeldy was previously going to be turned into permanent housing

Dunolly House exterior
Dunnolly House could now provide more holiday accommodation in Aberfeldy. Image: Thorntons

An empty Aberfeldy landmark is set to be converted into holiday accommodation.

Councillors unanimously approved the plan for eight serviced apartments at Dunolly House on Wednesday.

That’s despite complaints that Aberfeldy is crying out for permanent homes for local people.

Dunolly House previously had planning permission for conversion into five flats.

The new approval will allow the developer to create holiday accommodation in the grade C listed building instead.

Bailie Claire McLaren told colleagues on Perth and Kinross Council’s planning committee: “It’s a disused building, it’s listed. It’s on the edge of Aberfeldy as you enter it and it’s very visible.

Claire McLaren head and shoulders
Claire McLaren supported the plan for Dunolly House. Image: Supplied.

“So to see this back in use and tidied up would be a great asset.

“The creation of holiday accommodation is not wrong in an area where there is high tourism activity.”

Aberfeldy Community Council questions need for more holiday accommodation

Dunolly House sits beside the River Tay, on the corner of Kenmore Road and Taybridge Road, Aberfeldy.

It was built in the mid to late 1800s by Duncan MacDougall, a champion piper to Queen Victoria.

More recently it was used as a hostel and outdoor recreation centre.

However, it has lain empty for some years.

The previous application for five residential flats was approved in 2019.

Dunolly House from entrance gate
Dunolly House could now accommodate visitors to Aberfeldy. Image: Thorntons.

Aberfeldy and District Community Council objected to the new application from Dundee-based Obar 23 Ltd.

The group says it is in favour of seeing the property come back into use, and supported the flats plan. But it believes the new project will lead to over-development of the site.

In its letter to the council, it said: “It is also our belief that there is already an over-supply of holiday accommodation in the area, and that it is full-time residential accommodation that the area requires.”

Aberfeldy’s popularity posing problems for local house-hunters

A report to the planning committee said the current owner had concluded that the only viable option for the building is for serviced apartments.

Councillors were also reminded that Dunolly House is not currently in use as residential accommodation, so there would be no loss to the town.

Dunolly House interior, dark wood panelled bay windows looking out to trees beyond
Dunolly House still has echoes of its former grandeur. Image: Thorntons

The former hostel went on the market for offers over £300,000 last summer.

Solicitors Thorntons described it as a “one in a kind opportunity… in a stunning location”.

Aberfeldy is one of several towns in Perthshire reporting a shortage of affordable homes for locals.

Their popularity with visitors means many properties are now second homes and holiday lets.

Perth and Kinross councillors rejected an attempt to introduce a short-term let control area in Highland Perthshire in August.

However, the council has exercised new Holyrood powers which allow it to charge second home owners double the rate of council tax.

There has been a 13% drop in the number of second homes in Perth and Kinross since the policy was introduced in the spring.

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