The Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill aims to better align short-term lets (STLs) with the private rented sector (PRS) and address concerns that homes are being diverted from long-term residential use, particularly in tourism hotspots.
Propertymark supports the Bill’s overall direction but is clear that actions to secure an adequate housing supply must also include better local data, effective enforcement of existing rules, and more social and affordable homes, alongside policies that support a sustainable PRS – such as a review of the 4% Land Transaction Tax surcharge on additional homes, which is primarily paid by private landlords.
We will continue to engage with policymakers to ensure that reforms strike the right balance between supporting tourism, enabling professional property management, and meeting the housing needs of local communities across Wales.
Adopt locally tailored approaches
Short-term lets play an important role in the tourism economy and can offer flexibility for landlords, tenants, and people moving home. Agents also report opportunities to manage holiday lets professionally, rather than landlords relying on informal online platforms
However, our response makes clear that the impact of short-term lets is highly localised. Joint research with the Wales Tourism Alliance shows that:
- 76% of agents in tourism hotspots have seen growth in short-term lets over the past four years, compared with just 33% of agents in non-tourism areas
- The properties entering the short-term let market are often larger, higher-value homes that are already out of reach for many residents
Crucially, around 38% of short-term lets have come from homes previously in the PRS, directly reducing long-term rental supply. A further 34% are homes bought specifically for short-term letting, and 23% come from second homes
The evidence shows that one-size-fits-all policies are unlikely to work across Wales. In some areas, short-term lets have a clear impact on rents and availability. In others, the effect is limited due to lower tourism demand or a larger housing stock
Propertymark therefore urges policymakers to adopt locally tailored approaches, reflecting the intensity of tourism, housing pressures and community needs in different areas.
Planning controls, council tax and business rates
Our response also examines how recent Welsh Government measures interact with the Bill.
- Planning use classes and Article 4 Directions, such as those introduced in Gwynedd, have increased oversight of holiday lets. Agents report that additional planning requirements can deter some landlords from switching to short-term letting, but they may also affect property values if applied too broadly
- Council tax premiums on second homes have had mixed results. In high-demand areas, premiums have done little to deter investors, while in some cases, placing additional financial pressure on residents
- Non-domestic rates rules require self-catering properties to be available for 252 days and let for at least 182 days per year. Propertymark supports flexibility in how this threshold is assessed, but has suggested reducing it to around 120 days to better reflect seasonal demand
