Holiday Let Rule Changes in Wales Could Put Thousands of Tourism Jobs at Risk
New regulations affecting holiday lets in Wales have been described as “brutal” by industry experts, with fears the changes could lead to thousands of job losses across the tourism sector.
The Professional Association of Self Caterers (PASC) reports that many of its members are selling their properties, claiming the new criteria for qualifying for business rates have made their operations financially unviable. These changes were introduced in 2023 as part of a Welsh government effort to improve access to housing for local residents in popular holiday destinations.
What Changed?
Previously, holiday lets in Wales qualified for business rates if they were available for at least 140 days a year and let for at least 70 — the same system that still applies in England.
However, under new Welsh rules, properties must now be available for 252 days and actually let for 182 days annually. Failing to meet this threshold means the property is classified as a second home and subject to council tax — including potential premiums in some areas.
Industry Response
According to Nicky Williamson of PASC Wales, operators are struggling to meet the threshold, especially during off-peak months. She warned that a reduction in self-catering properties could severely limit tourism capacity, impacting the broader local economy — from cafés and pubs to activity providers and attractions.
“If tourism fails, the jobs go with it,” said Williamson. “Without the bed stock, we don’t have the facilities for tourists to stay.”
She also highlighted the mental toll on operators. A recent PASC survey found 94% reported increased stress due to the new rules, with 60% not expecting to meet the letting threshold this year. One farming family, she noted, received a £37,000 council tax bill after falling short of the requirement — despite previously being encouraged to diversify into holiday lets.
Real Impact on Businesses
- Karen Jones, who operates a holiday let business in Conwy, said off-season occupancy has become so difficult that she offers 20% discounts to encourage bookings during winter months — delaying essential maintenance and creating added stress.
- Frankie Hobro, owner of Anglesey Sea Zoo, reported a 20% drop in visitor numbers in 2023, which she links directly to the rule changes. She warned of a growing number of empty properties too expensive to be repurposed as local housing.
- William Matthews, from Oyster Holiday Cottages in north Wales, supports the goal of year-round tourism but believes the 182-day threshold is unrealistic, even with aggressive marketing in shoulder seasons.
“There’s a tipping point,” said Matthews. “And I think it may have gone a bit too far.”
Despite concerns, he remains optimistic about long-term visitor demand in Wales.
Government Response
The Welsh government insists the rules are about fairness and balancing local housing needs with the economic value of tourism.
“Everyone has a right to a decent, affordable home,” said a spokesperson. “Our measures ensure that property owners make a fair contribution in the areas where they run businesses.”
Supporters of the change, such as Cymdeithas yr Iaith, say it’s a step towards curbing second homes and improving housing access for local people.