EditorWelsh Government proposes more flexibility for holiday let occupancy rules
Since April 2023, self‑catering properties in Wales must be available to let for at least 252 days a year and actually let for 182 days to qualify for non‑domestic rates instead of council tax. The policy was introduced to address concerns over second homes and to support local services, but has faced strong criticism from parts of the tourism industry.
Under the new proposals, two key refinements are being considered:
- Averaging rule – allowing owners to meet the 182‑day threshold on average over two or three years, so those who narrowly miss the target in a single year could still remain on non‑domestic rates.
- Charity stays – permitting up to 14 days of free holidays donated to charities to count towards the 182‑day total.
The consultation also asks whether councils should be able to offer a 12‑month grace period before higher council tax rates apply when a property moves from non‑domestic to domestic classification.
Cabinet Secretary for Finance and Welsh Language, Mark Drakeford, said:
“Tourism makes an important contribution to the Welsh economy and to Welsh life… While most holiday let owners are already meeting the new rules brought in from 2023, with 60% of properties meeting the letting criteria, we have listened to those working in the sector and are proposing small changes to the current rules to support them.”
Industry reaction and background
The 182‑day rule has been one of the most contentious elements of the Welsh Government’s approach to holiday lets. As reported by Swansea Bay News last year, some operators warned the threshold was “out of reach” for many rural businesses, causing “soul‑crushing distress” and fears of closures. Farming unions have also raised concerns that wider tourism policies, including proposed licensing schemes, could create extra bureaucracy for genuine accommodation providers.
Analysis earlier this summer suggested Swansea’s holiday let occupancy had risen by 47% year‑on‑year, with some experts linking the increase to fewer properties being available to rent following the introduction of the 182‑day rule.
The consultation is open until 20 November. Full details and response forms are available on the Welsh Government website.
Related stories from Swansea Bay News
Swansea holiday let occupancy up 47% – but experts warn Welsh Gov policies forcing holidaymakers to fight over fewer rentals
Data shows rising demand amid concerns over reduced availability of short‑term lets.
Critics say Welsh Government 182‑day rule for holiday lets causing ‘soul‑crushing distress’
Operators warn occupancy threshold is unrealistic for many rural businesses.
Farming union opposes Welsh Government holiday let licensing scheme
FUW warns proposed system could add bureaucracy and harm genuine providers.
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