More changes ahead for holiday and short-term lets in Wales
Back in April 2024, we reported on changes Welsh Government were introducing for landlords of short-term or ‘holiday’ lets, including increased council tax and a new registration and licensing scheme.
Since then, further measures have been unveiled – one still in draft form, another already law – which are set to make the short-term lettings market more challenging for property owners.
1. Draft "Airbnb law" – the Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill
This month, Welsh Government published a draft bill aimed at regulating self-contained short-term accommodation (31 days or less), which media outlets are calling “the Airbnb law”. While still subject to debate and amendment in the Senedd, it highlights how much more onerous operating short-term lets could become.
Key points include:
- Applies to self-contained accommodation offered for 31 days or less. Excludes hotels, aparthotels, B&Bs, hostels, campsites and caravan sites.
- Premises must be “fit”, meaning landlords will need to provide a fire risk assessment, a mains smoke alarm on every storey (linked to each other), an EICR, a gas safety certificate, and CO alarms where relevant.
- Public liability insurance is mandatory.
- Operators must obtain a licence and complete training. The licence must be displayed for visitors. Costs for both the licence and training are likely.
- The registration number (from the mandatory register, see below) must appear on all adverts.
- Local authorities can inspect premises if they believe there’s reason to do so.
Even at this early stage, the proposals leave more questions than answers. Aparthotels are exempt because they are lumped in with hotels under the legislation, despite being very different things in our book. And what if a provider includes a breakfast: do they become a B&B, and therefore exempt? We anticipate more clarification as the bill progresses.
2. Visitor accommodation register and levy now law
Last month, the Visitor Accommodation (Register and Levy) Etc. (Wales) Act came into force. It requires all visitor accommodation providers to register on a national, mandatory register, regardless of whether a local council chooses to implement a levy. Registration opens autumn 2026, with no fee.
In case you missed it in the news, it also enables local authorities to introduce a visitor levy for overnight stays from April 2027 – like the “city tax” we often pay when abroad.
Levy rates (set nationally) will be 75p per night in hostels and campsites (under 18s exempt), and £1.30 per night in all other accommodation types (no exemption for under 18s).
What this means for landlords
Taken together, these changes increase regulation, administrative work, and costs for anyone running a short-term let in Wales. Shifting to long-term, traditional rentals has clear advantages:
- Reduced management: Long-term lets generally require less day-to-day oversight than short-term stays.
- Steady income: Secure rental contracts provide predictable cash flow and minimise void periods.
- Reliable tenants: With a professional lettings agency like ours, you can find screened, dependable tenants and enjoy peace of mind.
Whether you prefer a hands-on approach or a fully managed service, we can help you make the switch. With increasing regulation and costs, now may be the perfect time to consider moving your property from short-term to long-term rental.
For advice or to discuss your options, call us on 02920 454555 or drop an email to nikki.lewis@cpshomes.co.uk.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
