Wales' 182-day rule: How to respond to the holiday let consultation before 23 October
The Welsh Government has opened a 12-week consultation reviewing the 182-day letting threshold for self-catering properties. It closes on 23 October. Nicky Williamson of PASC UK is urging every holiday let owner in Wales to respond and to push for a significant reduction, which PASC UK proposes should be to 105 days. Any changes could take effect from April 2027.
What is the 182-day rule for holiday lets in Wales?
Since 2023, a self-catering property in Wales must be available to let for 252 nights and actually let for 182 nights a year to be classed as a business and pay business rates.
If an owner misses the 182-day rule in Wales threshold, the property moves back onto domestic council tax. That can carry a premium of up to 400% of the normal council tax bill.
What impact has the 182-day threshold had?
On the Host Planet Podcast, Nicky described the effect as "absolutely hideous":
The average unexpected council tax bill is around £20,000–£25,000
The highest she has seen is £92,000, for one owner with four holiday lets
Welsh Government data shows 30% of existing businesses are no longer operating
26% of those on council tax premiums are making no profit at all
86% are discounting heavily to reach 182 nights
The rule also stops owners making commercial decisions. Nicky gave the example of an owner holding out for a £700 week in August because he can't afford to lose nights by selling a shorter stay.
"These are not second home owners," she says. "These are generally long-standing Welsh tourism businesses."
Why is the Welsh Government reviewing the 182-day rule?
Nicky believes "the weight of evidence has become impossible to ignore." Members of the Senedd have heard real stories from owners, and the political make-up of the Welsh Government has changed. Three key parties have also committed in their manifestos to reviewing the threshold.
What should the threshold be?
The consultation asks about a "modest reduction", but Nicky says only a significant cut will solve the problem.
In England, the threshold is 70 days. Wales also used 70 days before 2023, when it rose to 182, even though only nine respondents to the original consultation had suggested that figure.
PASC UK is pushing for 105 days. That was the most popular figure in the original consultation, and it's a level that works for every type of property. Large group houses, for example, depend on school holidays, so they struggle to reach 182 however well they're run.
What about the proposed exemptions and workarounds?
The consultation also includes:
Averaging lettings over two or three years
Counting up to 14 charity-donated nights
Five exemptions, such as units within a wider business, multi-unit sites and properties with planning restrictions
Nicky welcomes these as concessions but warns they add complexity for local authorities and the Valuation Office Agency. They could also create "big winners and really big losers." For example, a new farm-based business could be exempt while a neighbour who has run a holiday let for 40 years is not.
"Everything leads back to the threshold," she says.
How to respond to the consultation
Wales has an estimated 20,000 dedicated holiday lets, but only 1,200 people responded to the last consultation. Nicky's advice:
Respond before 23 October, even if you think an exemption covers you. "Nothing is agreed until it's legislated."
Use PASC UK's guidance to navigate the consultation, which Nicky describes as narrowly worded and full of trip wires. Click here for details.
Contact your Member of the Senedd. "There's no more powerful tool than a real-life story from a real-life operator."
Get involved
PASC UK (the Professional Association of Self Caterers) campaigns for self-catering businesses every day. Click here to find out more.
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