Wales holiday lets register and licensing law passed

Landlords with short-term lets in Wales face added compliance costs and tighter advertising rules after new legislation introducing a national register and licensing system cleared the Senedd.

The Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill means that all providers of visitor accommodation, including self-catering properties, will be required to register and obtain a licence.

The licensing regime is expected to go live in 2028-29, with an initial focus on the self-catering sector before widening across the broader market.

Anyone advertising accommodation, whether directly or through an agent or platform, must display a valid premises registration number.

Failure to comply could trigger fixed penalty notices.

Cost of licence

The annual licence will cost £172, though another £556 may apply where appropriate insurance cover is not already in place.

The government estimates suggest that roughly a quarter of providers are affected by the extra charge.

Explanatory documents point to the expansion of short-term letting platforms, which have widened access to the market and increased the number of providers.

They also reference concerns that some landlords may opt for short-term lets rather than long-term tenancy, reducing the availability of homes for residents in certain areas.

During scrutiny, questions were raised about the pace of the Bill’s progress and how the licensing scheme will operate in practice.

The Senedd’s Economy, Trade and Rural Affairs Committee described the timetable as ‘unusually short’ and said it had restricted the level of scrutiny normally applied to primary legislation.

More red tape

Among the critics is North Wales Tourism which said the measures would add ‘another layer of regulatory burden on an industry already facing unprecedented challenges’.

Mark Drakeford, the minister responsible, said the changes reflect shifts in how the market operates.

He told Wales Online: “I am pleased this Bill has passed. It’s a significant step towards attracting visitors to Wales, knowing that accommodation meets the standards they would expect.

“Many providers already do the right things, and this Bill creates fair competition that protects both visitors and responsible businesses.”