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182-Day Occupancy Rule for Holiday Lets

Owen Donovan by Owen Donovan
September 3, 2026
in Housing & Communities, Issues
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182-Day Occupancy Rule for Holiday Lets

Is this devolved to Wales?

Devolved

The necessary powers are not reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006.

Shared Powers

Insert a specific explanation of the powers situation for this issue here.

Not Devolved

The powers over this are reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006 (Specific Section/Number/Clause).

Where is this happening?
National
What's happening?
Why is this happening?
Who has been affected?
What's happening?

Under current rules in Wales, self-catered accommodation/holiday lets need to be occupied for a minimum of 182 days a year (and available for let for 252 days) for owners to pay business rates instead of being liable for council tax.

Business rates for such properties are often much lower than the equivalent council tax bill.

On 8th July, the Senedd rejected a non-binding motion tabled by Reform UK calling for the 182-day rule to be scrapped. However, the Senedd backed a government amendment which called for the rules to be kept under review.

Why is this happening?

The rules were introduced in April 2023. The Welsh Government states it’s to ensure the owners of such properties “make a fair contribution to their local community”1.

It’s also part of a range of measures introduced in Wales to address shortages of affordable housing for locals in areas with high levels of tourism and second home ownership.

Opponents argue that the rules damage the tourism industry in Wales. They point to equivalent rules in England, which only require 70 days of occupancy and 140 days of being available to let.

Who has been affected?

In 2023, it was estimated around 26,000 properites in Wales were advertised for short-term lettings2. Exact figures are not known. 

While the rules are applied nationally, some parts of Wales – particularly Gwynedd and along the west coast – have very high proportions of holiday homes. These have been estimated to make up to 10% of all properties in some areas3.

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Costs & Economic Impact

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£ 00 million Total
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Who has raised this at the Senedd?

Rhun ap Iorwerth MS

First Minister

Elin Jones MS

Finance Minister

Anna Nicholl MS

Backbencher

Elfed Williams MS

Backbencher

Louise Emery MS

Shadow Culture Minister

Helen Jenner MS

Leader of the Opposition

John Clark MS

Backbencher

Gareth Beer MS

Backbencher

Thomas Montgomery MS

Shadow Skills Minister

Paul Marr MS

Backbencher

Steve Rodaway MS

Backbencher

Paul Davies MS

Conservative Whip

Rhun ap Iorwerth MS

First Minister

Elin Jones MS

Finance Minister

Anna Nicholl MS

Backbencher

Elfed Williams MS

Backbencher

Louise Emery MS

Shadow Culture Minister

Helen Jenner MS

Leader of the Opposition

John Clark MS

Backbencher

Gareth Beer MS

Backbencher

Thomas Montgomery MS

Shadow Skills Minister

Paul Marr MS

Backbencher

Steve Rodaway MS

Backbencher

Paul Davies MS

Conservative Whip

What are the party positions on this?
Plaid Cymru
  • Keep the policy under review
  • Opposed
  • Neutral/No Opinion

Plaid Cymru backbenchers believe the current policy, whilst well-intended, needs to be reviewed as it’s put unnecessary pressure on smaller self-catering holiday businesses.

it's also important for the Government to act quickly when good policy intentions are not delivering the intended change and, in the case of the 182-day threshold, may be in danger of taking us in the wrong direction. Since becoming a Member of the Senedd, I've met with many constituents who have told me about the challenges that the 182-day rule for holiday lets is creating. I've heard about the pressure that the policy is putting on many self-catering businesses and the toll it is taking on people running local businesses.
Anna Nicholl MS
Anna Nicholl MSCeredigion Penfro
The steps taken in recent years, thanks to Plaid Cymru's contribution in opposition, to reduce the number of holiday lets and to grow the housing stock in our communities are to be welcomed. However, cases have arisen in which genuine letting businesses, those that play an important role as part of our tourism offer, are being penalised. I was proud to stand on a manifesto that committed to creating new and clear exemptions in cases where that accommodation would not quality as a private home.
Elfed Williams MS
Elfed Williams MSBangor Conwy Môn
Reform UK
  • Supports
  • Opposes the 182-day rule
  • Neutral/No Opinion

Reform UK oppose the 182-day rule outright, and believe the tourism industry has been unfairly scapegoated as being a cause for housing shortages in tourist-heavy areas.

Nearly 40 per cent of genuine holiday lets are not making this unrealistic high bar of letting days. Independent survey evidence shows 47 per cent of owners are losing money as they're being classed wrongly as second homes. England's equivalent threshold is 70 nights, less than half ours. And there is no evidence so far that the higher Welsh bar achieves its aim of increasing the number of family homes in local communities. Protecting housing supply and community sustainability can be done through the planning system, not through an unfair fiscal tool.
Louise Emery MS
Louise Emery MSClwyd
We should not take tourism for granted. People choose Wales for our coastline, our castles, mountains and culture, but above all for the Welsh welcome. Wales has the potential for immediate growth in tourism, but world-class status is not our birthright. It is earned every day by thousands of small business owners who invest their savings, time and energy into keeping hotels, guest houses, bed and breakfasts and campsites open and attractive. If those operators feel their efforts are being taken for granted, or that the Government is determined to stop them from making a living, they will invest elsewhere or simply give up.
John Clark MS
John Clark MSBangor Conwy Môn
Saying that you're going to keep it 'under review' is not good enough. The industry is struggling. It needs our support, not a Government holding response. Also, what I will mention is it has been brought up today that the 182-day rule would help address the housing crisis in Wales. It hasn't. We still have a housing crisis. We have a housing crisis because we've had decades of a Welsh Government failing to build enough homes. Please don't try and scapegoat that to the tourism industry. If you want to address the housing crisis in Wales, get on and build more homes.
Tom Montgomery MS
Tom Montgomery MSClwyd
Labour
  • Supports the 182-day rule
  • Opposed
  • Neutral/No Opinion

Labour MSs said they support the 182-day rule, but most of their focus has been on the overnight visitor levy.

Test Test Test
Name MSConstituency
Conservatives
  • Supports
  • Opposes the 182-day rule
  • Neutral/No Opinion

The Conservatives support cutting the 182-day threshold.

There's plenty of evidence to show that reducing the 182-day threshold will help the tourism sector and will help support businesses to thrive. Data from the Valuation Office Agency has shown that the number of self-catering businesses is down by 30.7 per cent, and yet in England, over the same period, the fall is only 12.2 per cent. In my view, the difference is because of the 182-day threshold. We've all heard compelling evidence why the threshold is unrealistic, how the market is changing, and why a one-size-fits-all approach just doesn't work.
Paul Davies MS
Paul Davies MSCeredigion Penfro
Green Party
  • Keep the policy under review
  • Opposed
  • Neutral/No Opinion

Green MSs haven’t said anything on this, but voted in favour of keeping the policy under review.

Test Test Test
NameConstituency
Liberal Democrats
  • Keep the policy under review
  • Opposed
  • Neutral/No Opinion

Jane Dodds hasn’t said anything on this, but voted in favour of keeping the policy under review.

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Jane Dodds MS
Jane Dodds MSBrycheiniog Tawe Nedd
Who is responsible?

Elin Jones MS

Finance Minister

What have ministers said?
I have already….started the work of discussing how we can move ahead in reviewing the 182-day threshold and to consider whether new exemptions are required on a national level in relation to this policy. I know that the policy hasn't landed in the right place at the moment and that we do need that review, and so I am currently discussing options as to how I can come to a conclusion and make a decision as to how we should review this.
Elin Jones MS
Elin Jones MSCeredigion Penfro
Tourism matters to our economy; so do homes for local people. Those two truths must be held in balance. And where the balance is wrong, we will act. That's why our manifesto committed to reviewing the threshold and creating clear, reasonable exemptions where self-catering accommodation would not qualify as a private home.
Adam Price MS
Adam Price MSSir Gaerfyrddin
What's being done about this?
Promises & Pledge Tracker
What do the Welsh Government want to do?
Does this need a new law or regulations?
How long will this take?
What do the Welsh Government want to do?

Plaid Cymru’s 2026 Senedd manifesto included a pledge to keep the current rules for holiday lets under review.

A public consultation on the rules was launched in July 2026. Early proposals are for exemptions from the 182-day rule for holiday lets that can’t be used as a permanent home (i.e. holiday accommodation on farms).

Does this need a new law or regulations?

If the Welsh Government decides to make any changes, it’ll require new regulations.

The current rules are set out in the Non-Domestic Rating (Amendment of Definition of Domestic Property) Order 2022.

How long will this take?

The public consultation will end in October 2026. 

What have the Senedd's Committees said?

Nothing has been discussed yet.

Committee Name

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Relevant Votes
DateMotion NumberSubjectTabled AsBinding Vote?Votes ForAbstentionsVotes AgainstAbsent/No VoteOutcome
08/07/26NDM9284Amendment – Support tourist levy; keep 182-rule under review
No510385AGREED
08/07/26NDM9284Scrap the tourist levy and review 182-day holiday let rule
No380515REJECTED
Further Reading
  1. Welsh Government (29th August 2025). “Consultation launched to give holiday lets more flexibility“
  2. StatsWales (20th June 2023). “Second homes: what does the data tell us?“
  3. Office of National Statistics (20th June 2023). “More than 1 in 10 addresses used as holiday homes in some areas of England and Wales“

Related Issues

Overnight Visitor Levy (aka. “Tourist Tax”)
Finance & Tax

Overnight Visitor Levy (aka. “Tourist Tax”)

Owen Donovan
by Owen Donovan
September 3, 2026
0
Donations Welcome
Tags: CON-02HOU 04NationalPC-01PC-04-MPC-20PC-30RF-02RF-11RF-17RF-24RF-25RF-29RF-32
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