Welsh Government launches consultation to ease rules for holiday lets

The Welsh Government has opened a public consultation aimed at refining the rules governing self-catering holiday lets, with the goal of offering greater flexibility to property owners while maintaining fair contributions to local communities. Since April 2023, holiday lets must be available for 252 days and actually let for 182 days annually to qualify for non-domestic rates instead of council tax. The new consultation proposes two key changes to ease compliance with these requirements.

First, the government is considering allowing owners to meet the 182-day threshold by averaging their letting days over two or three years, rather than being assessed solely on the most recent year. This would help owners who narrowly miss the target due to unforeseen circumstances. Second, up to 14 days of free holidays donated to charities could be counted toward the 182-day requirement, recognizing the social value of such contributions.

The consultation also explores whether councils should offer a 12-month grace period before reclassifying properties from non-domestic to domestic rates, giving businesses more time to adjust. Cabinet Secretary for Finance and Welsh Language, Mark Drakeford, emphasized the importance of balancing tourism’s economic benefits with the needs of local communities and public services. He noted that while most holiday let owners already meet the criteria, the proposed changes reflect feedback from the sector and aim to provide added stability.

The consultation is open until 20 November, and responses can be submitted through the Welsh Government’s official consultation page.