Welsh holiday let consultation criticised by industry body
The Professional Association Of Self Caterers (PASC UK) Cymru has criticised the Welsh Government’s latest consultation on holiday let tax rules, warning the 182-day letting threshold is damaging businesses and communities.
The Government has proposed allowing operators to average their 182 days across two or three years, and to count charity lettings towards the target. A possible grace period before higher council tax applies is also being considered.
Nicky Williamson, Policy Lead at PASC UK Cymru, said: “Whilst our Members will welcome the acknowledgement that the 182-day rule is failing, these small concessions will not fix the problem. Wales has already lost over a quarter of its overnight visitors since this policy came in, yet the threshold has not changed. Business owners are working harder than ever just to stand still, with 85% discounting heavily to try to achieve the target. This is not sustainable.
“The proposal for a rolling 182 days only risks creating more uncertainty for operators, more complexity for local authorities, and more work for an already overwhelmed Valuation Office Agency. What Welsh businesses and communities need is clarity, stability, and fairness, not more layers of red tape.
“This policy is the most damaging intervention we have ever seen in our sector. It is piling pressure on small business owners, creating mental health issues, and destabilising Welsh tourism.”
The organisation argues that rural and coastal areas cannot afford anything less than a significant reduction in the threshold. It is calling for a cut from 182 days to 105 days, saying this reflects seasonal demand, keeps Wales competitive with England, and gives family-run operators a chance to survive.
Williamson added:“Tourism in Wales is in crisis. Without urgent and meaningful change, more businesses will close, more jobs will be lost, and more communities will suffer. The Government must act decisively; anything less is simply tinkering at the edges.”
Since April 2023, holiday lets must be available for 252 days and actually let for 182 days each year to be classed as non-domestic and pay business rates instead of council tax. The rules were introduced to ensure owners contribute to local communities and services.
The Welsh Government said 60 per cent of self-catering properties have met the new letting requirements since they were introduced.
Cabinet Secretary for Finance and Welsh Language, Mark Drakeford, said: “Tourism makes an important contribution to the Welsh economy and to Welsh life. Wales has so much to offer, and we want to ensure we realise that potential in a way that achieves a balance between our communities, businesses, landscapes and visitors.
“We work closely with tourism and hospitality businesses to help address the challenges they face, while ensuring everyone makes a fair contribution towards local economies and funding public services.
“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.”
Any changes would require legislation, with new rules expected to take effect from April 2026.
The consultation is open until 20 November 2025 and is available on the Welsh Government website.
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