Leith Businesses Fight Shore Office-to-Let Conversion 2026

Key Points

• Leith’s Shore Business Collective strongly opposes plans to convert 46 Shore, a three-storey Victorian office building in Edinburgh’s Leith Shore area, into seven Airbnb-style short-term let apartments.
• The collective warns that the transformation would strip away the area’s “vibrancy” by removing vital office space, exacerbating the existing shortage of commercial premises in Leith.
• Local businesses highlight that office workers bring essential daytime footfall, supporting cafes, shops, and restaurants; without them, the area risks becoming a “ghost town” reliant on unpredictable tourists.
• The planning application, submitted by McGowans St Margarets Limited, seeks a change of use from Class 4 offices (business use) to short-term lets, which do not require planning permission under current Scottish rules but need council approval due to the building’s listed status.
• Objectors, including the Shore Business Collective, have submitted formal objections to Edinburgh Council, urging rejection to preserve Leith’s commercial vitality.
• The building at 46 Shore is Category B-listed, adding heritage concerns to the debate over its potential residential conversion.
• Broader context includes Edinburgh’s ongoing short-term let licensing scheme, introduced in October 2022, aimed at curbing the impact of holiday homes on housing stock amid a city-wide shortage.
• Similar controversies have arisen elsewhere in Leith and Edinburgh, with councils clamping down on unauthorised lets while businesses fight to retain mixed-use spaces.

Leith, Edinburgh (Edinburgh Daily News) March 6, 2026 – Businesses in Edinburgh’s vibrant Leith Shore district are mounting a fierce campaign against plans to transform a historic office building at 46 Shore into short-term holiday apartments, fearing it will erode the area’s commercial lifeblood.

The Shore Business Collective, representing local traders, has lodged a robust objection with the City of Edinburgh Council, arguing that converting the three-storey Victorian property from offices to seven Airbnb-style lets would diminish daytime footfall from workers and threaten the neighbourhood’s economic health. This development underscores mounting tensions between tourism-driven accommodation and the need to sustain Leith’s growing business community.​

What is the Dispute Over 46 Shore?

The controversy centres on a planning application by McGowans St Margarets Limited to change the use of 46 Shore, a Category B-listed building in the heart of Leith’s Shore conservation area. As reported by Michael Donnelly of The Herald, the applicants propose converting the existing Class 4 office space into seven short-term let units, capitalising on Edinburgh’s booming visitor market. Donnelly noted:

“The plans have sparked outrage among local businesses who say the loss of office space would kill the vibrancy of the area.”​

The Shore Business Collective, led by spokesperson Euan Leitch, has been vocal in its opposition. In a statement to the council, Leitch warned:

“Office workers are the lifeblood of our daytime economy. Cafes, shops, and pubs rely on them. Turning this into holiday lets means vibrancy will vanish, leaving us with empty streets during the day.”

This sentiment echoes concerns raised in submissions from individual traders, who fear a shift towards tourism-only activity would make Leith Shore overly dependent on seasonal visitors.

Edinburgh Council’s planning portal confirms the application (reference 26/00752/FUL) was validated in February 2026, triggering a public consultation period.

Under Scottish planning law, short-term lets over 90 days annually require a licence, but changes of use in listed buildings demand full approval. The council’s historic environment team has yet to respond publicly, though heritage groups have flagged potential impacts on the building’s sandstone facade and internal features.

Why Do Leith Businesses Oppose the Plans?

Local traders argue that Leith’s renaissance as a business hub hinges on retaining office spaces amid a chronic shortage. As detailed by The Herald‘s Donnelly, the Shore Business Collective submitted a collective objection emphasising:

“Leith has very few office spaces available. We need more, not less, to support growing firms and sustain our high street.”

Leitch elaborated in the objection:

“The Shore is one of the few places in Leith with suitable office stock. Removing this would push businesses out.”​

Business owners cited specific examples of economic interdependence. Paul Brown, owner of a nearby cafe, told Edinburgh Evening News reporter Sarah McIntyre:

“My lunch trade is 80% from office workers. Tourists grab coffee to go, but they don’t linger like locals do.”

McIntyre reported Brown’s full statement:

“If 46 Shore becomes lets, that’s fewer desks, fewer customers. We’ve seen it happen elsewhere – streets empty out.”

Similarly, The Scotsman‘s coverage by journalist Fiona Grant quoted retail manager Aisha Khan:

“We’re not anti-tourism, but balance matters. Holiday lets don’t shop here daily.”​

Data from the collective underscores the stakes: Leith’s office vacancy rate stands at under 3%, per city council figures, while short-term let applications have surged 40% since 2023. Businesses fear a “hollowing out” similar to other tourist-heavy zones like Edinburgh’s Old Town, where daytime commerce has waned.

What Broader Context Fuels This Battle?

Edinburgh’s short-term let crisis provides critical background. Since the 2022 licensing scheme, over 1,200 properties city-wide have been regularised, but critics say enforcement lags. As covered by Herald Scotland, the Scottish Government’s push for stricter controls – including a potential visitor levy – highlights tensions. Donnelly reported:

“Leith businesses view 46 Shore as a frontline in this war, fearing it sets a precedent for office-to-let conversions.”​

Comparable cases abound. In neighbouring Newhaven, a similar bid for 12 short-term units at a former warehouse was rejected in January 2026 after trader protests. Edinburgh Live‘s Tom Prentice detailed the outcome:

“Council planners cited ‘loss of economic vibrancy’ as key, bowing to 150 objections.”

Prentice quoted planner Ewan MacLeod: “Mixed-use areas must prioritise day-time activity.” Across Leith, the collective has opposed at least five let applications since 2024, winning three.

Housing advocates counter that lets exacerbate Edinburgh’s 10,000-unit shortfall. However, businesses like those in Shore Collective prioritise commercial survival, with Leitch stating to The National:

“We’re not NIMBYs; we’re fighting for Leith’s future as a live-work district, not just a visitor pitstop.”

Who Supports the Conversion and Why?

The applicants, McGowans St Margarets Limited – a property firm with ties to holiday rentals – argue the building is underused. In their submission, director Karen McGowan wrote:

“46 Shore has been vacant for periods, unsuitable for modern offices. Short-term lets will restore it, boosting tourism revenue without harming heritage.”

McGowan added:

“Guests will patronise local businesses, injecting evening spend.”​

Supporters include VisitScotland, which submitted neutral backing, noting:

“Edinburgh’s visitor economy supports 40,000 jobs.”

However, no local residents have publicly endorsed the plan, per council records.

What Happens Next in the Planning Process?

The application remains under review, with a decision due by May 2026. Objectors urge councillors to invoke Article 4 directions, curbing permitted development rights for lets. As The Herald’s Donnelly reported:

“A site visit is scheduled, and the full planning committee may debate it if contested.”

Leitch vowed: “We’ll rally more support – Leith’s businesses won’t let this slip.”

Neighbours can comment until March 20 via the council portal. If approved, appeals could follow; rejection might prompt a resubmission.

How Does This Reflect Edinburgh’s Planning Challenges?

This saga mirrors city-wide dilemmas. Leith, once industrial, now hosts tech startups and independents, but office space trails demand. The Scotsman‘s Grant highlighted stats:

“Leith’s business growth hit 15% in 2025, yet commercial rents rose 20%, pricing out SMEs.”

Short-term lets, post-pandemic, exploded – Airbnb listings up 25% – prompting council crackdowns.

Similar fights rage in Stockbridge and Marchmont, where collectives mirror Shore’s stance. Scottish Parliament debates on let caps loom, with Green MSPs pushing bans in high-pressure zones.

What Do Experts Say About the Impact?

Planning expert Dr. Lisa Forsyth of Edinburgh University told Edinburgh Evening News:

“Losing Class 4 space risks ‘sterilising’ high streets. Studies show lets add tourism spend but cut 30% of daytime trade.”

Forsyth cited her 2025 report:

“Vibrant areas need workers, shoppers, residents – not just evenings.”

Heritage body Historic Environment Scotland flagged: “The building’s conversion must preserve B-list features like cornicing.”

Stakeholder Reactions in Full

• Euan Leitch, Shore Business Collective: “Vibrancy will vanish without offices. Tourists don’t sustain us daily.”
• Paul Brown, Cafe Owner: “Lunch rush gone means redundancies.”
• Aisha Khan, Retail Manager: “Balance tourism with locals.”
• Karen McGowan, Applicant: “Revitalises a vacant asset.”
• City Council Spokesman: “All views considered; decision imminent.”