New legislation has been passed in Wales introducing a national register and licensing system for holiday lets and other visitor accommodation. The Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill aims to tighten regulation of short-term lets, requiring all providers to register and obtain a licence, with the regime expected to come into force in 2028-29.

National register and licensing system

The new Bill mandates that all providers of visitor accommodation in Wales, including self-catering properties, must register and secure a licence to operate legally. This licensing system will initially focus on the self-catering sector before expanding to cover the wider visitor accommodation market.

One key requirement is that anyone advertising accommodation—whether directly, through an agent, or via a platform—must display a valid premises registration number. Failure to comply with these rules could result in fixed penalty notices, signalling a stricter enforcement approach.

Licence costs and insurance requirements

The annual licence fee is set at £172. However, an additional charge of £556 may be applied if appropriate insurance cover is not already in place. Government estimates suggest that around 25% of providers will be affected by this extra insurance-related cost.

These measures respond to the rapid growth of short-term letting platforms, which have increased market access and the number of providers. There are also concerns that some landlords might favour short-term lets over long-term tenancies, potentially reducing housing availability for local residents in certain areas.

Concerns over legislative process and regulatory burden

During the Bill’s scrutiny, questions were raised about the accelerated timetable for its passage. The Senedd’s Economy, Trade and Rural Affairs Committee described the timeframe as “unusually short,” limiting the depth of scrutiny typically applied to primary legislation.

Industry voices, such as North Wales Tourism, have criticised the Bill for adding “another layer of regulatory burden on an industry already facing unprecedented challenges.”

Government perspective

Mark Drakeford, the Welsh Minister responsible for the Bill, emphasised that the changes reflect evolving market dynamics. Speaking to Wales Online, he said: “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.”

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

What this means for landlords

Landlords operating short-term lets in Wales should prepare for increased compliance requirements, including registration, licensing, and displaying valid registration numbers in all advertisements. The introduction of licence fees and potential additional insurance costs will also impact operating expenses.

The phased implementation, starting with self-catering properties, provides some lead time before the full regime applies across the sector. However, landlords should begin reviewing their current compliance status and insurance arrangements to avoid penalties once the scheme launches in 2028-29.

Source: Based on reporting from Property118

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