The Valuation Office (VOA) has admitted it failed to contact hundreds of Welsh holiday let owners about controversial council tax rule changes that have resulted in backdated bills of up to £15,000.

The Government agency has repeatedly claimed it wrote to “all affected owners” about stringent new holiday let policies introduced by Welsh Labour in April 2023. However, Freedom of Information requests by the Telegraph reveal it failed to update its property database, leaving owners unaware of changes that would cost them thousands.

Nicky Williamson (pictured), Chair of the Professional Association of Self-Caterers Wales, says almost all operators report receiving neither adequate communication nor sufficient notice about the council tax changes.

Minimum 182 letting days

Under the new regulations, holiday let owners must achieve 182 letting days annually to qualify for business rates rather than council tax. Those failing face bills with second home premiums of up to 300%.

The VOA says it sent letters to 10,828 properties in October 2022 via untracked second-class post. According to industry estimates, though, there are around 22,000 dedicated holiday lets in Wales, meaning thousands would not have received warnings.

One anonymous owner was billed £14,000 by Pembrokeshire County Council despite never receiving notification. FOI documents show she was excluded from the initial mailing because her address was not on the agency’s spreadsheet until nine days after letters were sent.

In the media, they have claimed they sent everyone a letter. They did not.”

The owner says: “In the media, they have claimed they sent everyone a letter. They did not. I managed to hit 182 nights in every other year, but because I didn’t know I had to do that in 2022, I got sent a bill for three years’ worth of council tax.”

The controversial council tax has contributed to a collapse in tourism since its introduction, with trips down 27% and nights spent at holiday lets falling 29%. Tourist spending has dropped 10%. House prices have suffered, too, slumping 8.9% in Pembrokeshire and 12.4% in Gwynedd as owners sell up.