The Welsh Government has opened a consultation to review the 182‑day occupancy rule for holiday lets after criticism from owners and industry groups. Wales currently requires properties to be available for 252 days and actually let for an average of 182 days to qualify for business rates; failing properties can be classed as second homes and face council tax premiums. Ministers are proposing a "modest" reduction in the 182‑day threshold and up to five new exemptions for accommodation that cannot be permanent homes. The consultation will assess impacts on tourism, local authorities and community housing.
Wales To Revisit Controversial 182‑Day Holiday‑Let Rule After Owner Backlash
The changes were introduced as part of efforts to preserve housing for local people [Getty Images]
The Welsh Government has launched a consultation to review the 182‑day occupancy rule for holiday lets after sustained criticism from property owners and industry groups that the threshold harms viable tourism businesses.
What the rule requires
Under the system introduced in April 2023, holiday properties in Wales must be available for at least 252 days a year and actually let for an average of 182 days over a two‑ or three‑year period to qualify for business rates. Properties that fail those tests can be classified as second homes and become liable for council tax, which in some local authorities carries an additional premium. In Gwynedd, for example, second‑home owners pay the standard council tax bill plus a 150% premium.
Why the review was launched
Finance Minister Elin Jones said the government will examine whether a "modest" reduction to the 182‑day threshold might help tourism firms that are contributing to local economies but cannot meet the current requirement. The consultation will also consider five proposed exemptions for accommodation that cannot reasonably be used as permanent homes, such as certain rural or farm‑based lets.
Reactions from industry and politicians
The Professional Association of Self Caterers (PASC) welcomed the review, saying it is an opportunity to "reconsider one of the most damaging policies to affect Welsh tourism businesses in recent times." PASC's Welsh policy adviser, Nicky Williamson, urged operators to submit evidence showing how the rule affects them and argued that a realistic threshold is essential to keep Welsh tourism competitive.
Opposition voices said details matter. Reform UK asked what a "modest" reduction would actually look like and whether it would provide meaningful support. Shadow minister Louise Emery warned that additional exemptions could add bureaucracy and called for "a more ambitious plan to reduce the threshold" rather than small adjustments.
Context and next steps
Previously, the test in Wales mirrored the system still used in England: availability for 140 days a year and actually let for at least 70 days. The 2023 reforms were part of measures agreed under the Labour‑Plaid co‑operation agreement aimed at addressing second‑home ownership and local housing pressures.
The consultation will gather evidence on whether the 182‑day occupancy requirement is set at the right level and what impact any modest reduction would have on businesses, local authorities and communities. Ministers say they want to strike a balance between protecting homes for local communities and supporting tourism businesses to thrive.
What owners should do: The government is inviting submissions as part of the consultation. PASC urges holiday‑let operators to explain how the current rules affect their businesses and to provide practical examples and data where possible.
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