Wales Holiday Home Letting Rules Stress Owners

Holiday home owners in Wales are buckling under the stress of failing to meet strict letting rules that can leave them owing thousands of pounds in council tax.

Self-catering holiday homes in Wales must be available to let for 252 days and occupied by tourists for at least 182 days in any rolling 12-month period to qualify for business rates rather than pay council tax.

However, although the rule started on April 1, 2023, holiday home owners did not realise that letting days in the previous year counted towards the total.

Around 60 per cent of holiday let owners expect to fail the test and worry about paying council tax - often at enhanced rates, such as 250 per cent of the standard rate in Gwynedd, which includes much of the popular Eryri National Park and Mount Snowdon.

Unexpected bills

The new rule has left operators facing unexpected council tax bills.

Sharing his plight on social media, holiday home owner George Smith said: "My backdated council tax bill stands at £18,500. I'm awaiting nine months for the Valuation Office Agency (VOA) to decide on our appeal.

"The council has offered me a payment plan of £1,070 a month until 2027. The council worked out that the tax would be more than £30,000 by then.

"The stress and worry are incredible."

Properties that let for 182 days qualify for much cheaper business rates.

Tourist levy concerns

Holiday home owners are also concerned that a proposed tourist levy will keep tourists away.

While the Welsh Government paints a rosy picture of tourism in the country, lobbyists at the Professional Association of Self-Caterers (PASC) say the numbers look good until compared with earlier years.

"Welsh Secretary Dame Nia Griffith struck an upbeat tone, noting that tourism in Wales is thriving, with over 7 million overnight trips and more than £2 billion in domestic spending last year. Sadly, failing to note the Welsh Government reporting a 29 per cent drop in overnight stays over the last two years," says the PASC.

The tourist levy is a tax on visitors staying overnight in Wales, which is expected to start in 2027 and is slated to raise £33 million a year to improve local amenities and support tourism if every council joins the scheme. However, councils can opt out of the levy, which would dent the £33 million target.

Jobs rely on tourists

Tourists will pay £1.30 each night they stay in a hotel, B&B or self-catering accommodation, or 75p a night for a campsite or hostel stay.

The PASC also warns that holiday home owners are selling up, and some areas will lack tourist accommodation, impacting local economies.

"If tourism fails," said Nicky Williamson of PASC Wales, "The number of people employed in tourism will lose their jobs at pubs and cafes. If there are no tourists, supporting businesses and services are not going to survive."