Prime Minister Sir Keir Starmer has confirmed his government will not only ‘plough ahead’ with the mandatory national registration scheme, but it will also introduce additional holiday let controls.

This is basically stage one, we’ll then carefully review what stage two should look like.”

Speaking to the BBC, Starmer said: “We’re going stage-by-stage, so this is basically stage one, we’ll then carefully review what stage two should look like, but in terms of the sort of underlying concern, or issue, I completely understand that and I’m determined that we’ll get to grips with it, working with others to make sure that we get it right.”

The comments are the clearest indication yet that ministers will go further than originally planned, delivering on pre-election pledges to give councils powers to limit holiday let numbers in their areas.

The Ministry of Housing, Communities and Local Government has also previously expressed sympathy with the “frustration” of communities where large numbers of properties were used as second homes and holiday lets.

controversial clampdown

The controversial clampdown has already sparked significant disruption in the housing market in Wales. Council tax premiums alongside restrictions requiring owners to obtain planning permission for residential property conversions have seen house prices fall by up to 12.4% (Gwynedd) as owners sell up.

And Tim Thomas, Policy and Campaigns Officer at Propertymark, says feedback from member agents suggests the crackdown is not having the desired effect. He told The Negotiator: “The campaign is forcing Welsh owners to sell up rather than wealthier outside investors who are just taking the hit.”

And it is having a significant impact on estate agencies. Pembrokeshire Properties, for example, closed its doors after sales fell from 60 properties in 2021-22 to just 10 in 2025.

Licensing for holiday lets is already in force in Scotland.