Welsh Government launches consultation on licensing scheme for short term holiday lets

The Welsh Government has launched a consultation on the implementation of a statutory licensing scheme for holiday lets as part of its effort to address the "negative impact" short-term holiday lets can have on housing availability.

In a statement announcing the consultation, the Welsh Government said the proposed scheme, which will make it a requirement to obtain a license for short-term lets including Airbnbs, will impose greater safeguards for local communities.

According to the statement, the primary aim of the scheme is to establish a "level playing field" for all visitor accommodation businesses as there are concerns that certain parts of the sector do not meet or comply with their statutory obligations.

The proposed scheme would provide the mechanism to address concerns on compliance, provide a database of exactly who is operating in the industry, and help "understand the scale and nature of the sector".

Plans for a statutory licensing scheme were first unveiled in July 2022, after the Welsh Government released details of a 'Co-operation Agreement' with Plaid Cymru, which also committed to new planning laws and proposals to change land transaction tax.

Designated Member, Siân Gwenllian, said through the Co-operation Agreement, the Welsh Government is “taking radical and immediate action to address housing market failures and the lack of affordable housing, using the planning, property and taxation systems to make a difference”.

She later added: “There has been a huge increase in the short-term holiday let sector in recent years which is exacerbating the housing crisis in Wales. While we have a regulatory framework in place in Wales for private rental accommodation, there isn’t one that covers all types of visitor accommodation.

“Our proposals will bring greater safeguards to local communities on the use of residential dwellings as short-term holiday lets in particular, whilst enhancing the visitor experience and visitor safety in Wales.”

Commenting on the consultation, Economy Minister, Vaughan Gething, said the Welsh Government is “aware of the concerns around compliance with existing requirements and the impact of short-term lets on housing stock and our communities."

He added: "Over the course of the past year, we have been exploring and engaging with stakeholders on how such a scheme could work in Wales. As the consultation now opens, we would like to hear further views and would encourage the sector to respond to the consultation."

Adam Carey