More red tape for holiday lets sector in Wales

Former Welsh First Minister Mark Drakeford calls new register a ‘significant step’, but critics say it’s just another regulatory burden for a sector that’s already struggling.

Mark Drakeford

A controversial new law requiring providers of holiday lets and other tourist accommodation in Wales to sign up to a national register has been passed by the Senedd, prompting warnings from the tourist industry about the cost and increasing regulation in the sector.

It is part of the Welsh Government’s Programme for Government 2021–2026 commitment to “take forward actions to cap the number of second homes, bring more homes into common ownership and licence holiday lets”.

The Bill, the Development of Tourism and Regulation of Visitor Accommodation (Wales), introduces a licensing system that covers holiday lets and other visitor accommodation in the principality.

The Welsh Revenue Authority will also publish a national register of all self-catering accommodation, detailing their type and location.

Fixed penalties

Under the new rules, all providers – and anyone advertising accommodation on their behalf – will have to display a valid premises registration number in their advertising. Those who fail to comply could face fixed penalty notices.

According to Government estimates, the average annual licence will cost around £172. There could be additional costs of around £556 if the accommodation does not already meet safety requirements such as gas and electrical certification, smoke and carbon monoxide alarms. It would then increase by another £500 if there were no appropriate insurance cover.

Concerns have been raised during the Bill’s passage through the Senedd about the speed of its introduction and the level of detail around how it will operate.

North Wales Tourism warns it could place “another layer of regulatory burden on an industry already facing unprecedented challenges”.

I am pleased this Bill has passed. It’s a significant step towards attracting visitors to Wales.”

However, Mark Drakeford (pictured), the minister responsible, told Wales Online that it is in response to the “rapidly changing nature of the industry.”

He adds: “I am pleased this Bill has passed. It’s a significant step towards attracting visitors to Wales, knowing that accommodation meets the standards they would expect.”


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