Schofields welcomes Welsh Government consultation on holiday let rules
Phil Schofield said the changes will relieve some financial pressure on smaller, family-run businesses that depend on seasonal tourism.
Thousands of holiday homeowners across Wales could see changes to holiday let rules as the Welsh Government started a 12-week consultation reviewing the system.
At present, holiday let owners must have their properties available to rent for at least 252 days a year and booked for a minimum of 182 days to qualify for business rates.
Owners who do not meet these thresholds face higher council tax bills.
Phil Schofield, head of marketing at Schofields, said: “Many people assume that owning and renting out a holiday cottage is enough to qualify for business rates, but that’s not the case.
“In Wales, holiday lets that aren’t booked for a minimum of 182 days don’t reach the occupancy thresholds, and are usually treated as domestic second homes instead, which can result in substantially higher council tax charges, including premiums of up to 300% in some areas.
“For many owners, that’s the difference between running a sustainable business and facing a significant additional tax bill.”
Schofield added: “The rules were introduced to distinguish genuine holiday let businesses from second homes.
“However, many operators argue the current thresholds don’t reflect the realities of tourism, particularly in seasonal destinations.
“Demand naturally rises and falls throughout the year.”
He said: “Coastal resorts, national parks and rural communities often experience much quieter winters, making it far more difficult for legitimate businesses to achieve 182 booked nights every year.
“As a result, many owners feel under constant pressure to secure bookings, even during periods when visitor demand is traditionally low.”
The consultation will look at lowering the current 182-day booking threshold, though the final number is still being decided.
It will also consider exemptions for holiday lets that are part of larger tourism businesses, multi-unit accommodation, those with planning restrictions, and self-catering units on home grounds or working farms if they remain commercial holiday accommodation.
If these proposals go ahead, Schofield stated that it will help genuine holiday let businesses that have struggled with the current rules.
He added that the changes will relieve some financial pressure on smaller, family-run businesses that depend on seasonal tourism.
Schofield said: “While the proposed changes will be welcomed by many holiday let owners, it’s important not to assume the rules have already changed.
“The Welsh Government’s review is still ongoing, and the existing occupancy thresholds remain in place.
“Until any new legislation is confirmed, owners should continue planning around the current requirements and do everything they can to meet them.”
Schofield added: “If you’re concerned about reaching the threshold this year, now is a good time to focus on attracting bookings outside the traditional peak season.
“Discounted autumn and winter breaks, shorter weekend stays, dog-friendly accommodation, and targeting niche audiences such as remote workers can all help increase occupancy.
“It’s also worth reviewing your marketing strategy. Don’t rely on a single booking platform.”
He said: “Keep your listings up to date, invest in high-quality photography, respond promptly to enquiries and encourage guest reviews, as these can all have a real impact on bookings.
“Although the review offers genuine reason for optimism, nothing has changed just yet.
“Holiday let owners should continue working towards the current thresholds while keeping a close eye on announcements from the Welsh Government.”
He added: “The fact that ministers are reviewing the policy is encouraging.
“It suggests there’s growing recognition that a one-size-fits-all approach doesn’t always reflect the realities of running a genuine holiday let business in seasonal destinations.”
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