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The Professional Association of Self Caterers (PASC) has expressed strong concerns over recent changes to council tax regulations in Wales, describing them as a “disease” that risks devastating the tourism sector. Since 2023, holiday let owners must rent out their properties for at least 182 days annually to qualify for reduced business rates. These rules were introduced mainly to improve access to housing for locals in popular holiday areas. However, PASC argues that many operators find the requirements unattainable, forcing some to sell their holiday accommodations.
Previously, the criteria for lower business rates were less stringent: properties had to be available for let for a minimum of 140 days and actually let for at least 70 days each year. This system remains in place in England, but Wales’ new rules stipulate that properties must be available for at least 252 days and let for 182 days. Should the threshold not be met, holiday lets could be classified as second homes, becoming liable for council tax, which in some regions carries significant additional premiums. For instance, in Gwynedd, second-home owners pay an extra 150% on top of the standard council tax.
Nicky Williamson from PASC labeled the 182-day minimum as problematic, saying, “It has the potential of wiping out tourism in Wales.” She explained that the issue stems not from any surface symptoms but from the threshold itself, warning that failing to address it properly could harm the tourism sector irreparably. Similarly, Gwyndaf Pritchard, who manages two holiday lets in Dwygyfylchi, Conwy, shared his personal struggles with the rule. He described the intense pressure to meet the requirement, which even caused him stress-related illness, and stressed that this demanding situation cannot be sustained in the long term.
The Welsh government has acknowledged the controversy and announced intentions to introduce modest adjustments by April 2027. These changes would allow holiday let owners to average their rental days over three years, rather than meeting the quota annually. Additionally, operators would be permitted to count up to 14 charitable let days per year toward the total, and local authorities would be encouraged to support businesses that narrowly miss targets by applying only standard council tax rates before imposing higher premiums. Despite this, PASC criticized the proposed modifications, arguing that giving away 14 days for free is difficult for many, and averaging over multiple years would still create ongoing pressure. Various political figures have also weighed in, with some parties proposing to lower the occupancy threshold or even abolish the 182-day rule altogether. Meanwhile, the Welsh Labour finance secretary reaffirmed the government’s position that a property should be let for most of the year to be classified for non-domestic local tax purposes, emphasizing that 60% of self-catering properties already meet the current requirements
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