Plans unveiled for licensing scheme for short-term lets in Wales

The Welsh government have announced plans for a licensing scheme for short-term lets.

Under the Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill, Airbnbs and self-catering accommodation will need a licence to show they meet safety standards.

The Welsh government say the Bill will create a “more level playing field between short and long-term letting.”

Bill sets out an enforcement regime for those who fail to meet its requirements

Under the bill, self-catering accommodation, including Airbnbs, would need to meet five specific criteria, including a current gas safety certificate, an electrical safety certificate, an insurance certificate, and confirmation that a fire risk assessment and smoke and carbon monoxide alarms

Speaking during a debate about the bill in the Senedd, Cabinet Secretary for Finance Mark Drakeford warned that those who fail to meet safety standards could be fined.

He said: “The bill sets out an enforcement regime for those who fail to meet its requirements.

“However, the approach is rooted in proportionality, based on information, education, encouragement and escalation, preceding the use of enforcement powers. It’s my belief that the vast majority of accommodation providers will be keen to remedy any problems identified well before the need to take enforcement action is reached.

“However, it is right that where breaches are persistent or repeated, an enforcement regime of warnings, remedial notices, penalties and prosecution is in place in order to protect the integrity of the licensing system.”

Bill creates a more level playing field between short and long-term letting

In Wales, there are strict rules for private landlords to register and license their properties under Rent Smart Wales.

Under the rules, private landlords must pay a fee to license their property if they manage it themselves, and letting agents managing property on a landlord’s behalf may also face fees that can cost hundreds of pounds.

To qualify for a landlord licence, you must complete and pass a training course.

Mr Drakeford told the debate that, for short-term lets, the bill creates consistency between short- and long-term lettings.

He said: “The bill creates a more level playing field between short and long-term letting. As it stands, if an individual chooses to let a property to a long-term tenant, that person must register as a landlord, obtain a licence themselves or through an appointed agent, and ensure that statutory obligations are being met.

“By contrast, should the same individual choose to let out a property to visitors on a short-term basis, it can simply be listed on an online platform and bookings can immediately start to be taken.

“Over this term, a series of measures will have been introduced to ensure a proper balance between a thriving visitor economy and those communities that welcome visitors to their midst. That balance has to include a more consistent approach to the requirements placed on those who offer accommodation on a short and long-term basis.

“As in long-term letting, therefore, the bill makes it clear that, as well as needing to obtain a licence, self-contained, self-catering accommodation providers are directly responsible to their visitors for providing accommodation in which it is fit for them to stay.”