A mandatory short lets registration and licensing scheme is to be introduced in part of the UK, described as a system to “enable providers to demonstrate compliance with safety and quality requirements.”
Anyone who lets out what is described as “visitor accommodation” in Wales must register - this will include Airbnbs and any other short lets, in addition to more traditional bed and breakfast operations.
This new scheme is a direct result of the political deal between Labour - the largest party in the Welsh Government - and the Welsh nationalist party Plaid Cymru, which has an alliance giving Labour an absolute majority in the Parliament. A licensing and registration system has been a demand of Plaid Cymru which claims short lets reduce the overall long term rental stock, and encourages more second home ownership.
A statement from the Welsh Government says: “Many parts of the world have already adopted licensing, certification or registration schemes across their visitor accommodation sectors and the Welsh Government has been considering best practice to design one that is simple and easy to use for accommodation providers in Wales.
“Across the UK, Northern Ireland has had a certification scheme established for all visitor accommodation since 1992, with Scotland having recently introduced a licensing scheme for short term lets. The UK Government is also pursuing a registration approach for short term lets.”
In Wales, the first phase will be a statutory registration scheme for all accommodation providers, which will provide a register on the broad range of visitor accommodation available across the country and will include details on who is operating in the sector, where they are operating, and how they are operating.
Once a registration scheme is fully established, the intention is to follow with a licensing scheme for all visitor accommodation. This will initially focus on confirming compliance with safety requirements visitor accommodation providers should already be meeting, before looking at introducing quality standards at a later stage.
The deputy minister for arts, sport and tourism, Dawn Bowden, says: “Tourism makes an important contribution to the Welsh economy and to Welsh life so this information will be crucial in helping us better understand the sector, as well as helping to inform future policy decisions at a local and national level. The visitor economy is changing rapidly, and while the growth of online booking platforms has brought many benefits, there are concerns around compliance with existing requirements and the impact of short-term lets on housing stock and our communities.”
The measure has been welcomed by the Short Term Accommodation Association, which is a fledgling trade body for the short lets sector.
Chief executive Andy Fenner says: “The Welsh Government has swooped in ahead of its counterpart in Westminster to deliver a registration scheme worthy of the name. The most important aspect of the Welsh plan is that all visitor accommodation will be required by law to register, not just holiday lets.
“For the first time in Welsh history, policymakers, officials and residents will have a clear picture of how big the hospitality sector is in each area, how it is constituted, and how big an economic contribution each type of provider is likely making.
“Moves to restrict any part of the tourist accommodation sector will, in future, be based on hard facts, not rumour and innuendo, giving decisions a proper basis. This is a really positive step forward for tourism in Wales and one that we hope is replicated in England, which will be the last region of the UK to see a registration scheme introduced.”
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Coming soon to England!
Congratulations to the Welsh government, they have virtually destroyed the BTL market in Wales with their new rental contracts, they are now about to do the same to the holiday industry. What a bunch of loons all following in the steps of Dopey Drakeford.
He is one politician who needs taking round the back of the Town Hall for a proper talking to.
Instead of conspiring against people who wish to invest in property, wouldn't it be more sensible to just encourage more homes to be built?
We already have licensing for STLs in Scotland... Just another money making scheme.. I've got my licence now and trading as normal... 3 years on and I'll have to cough up again....and so the rolling wheel trundles on......until the next scheme to screw us all out of some more of our hard earned money
Hi Shane
If you're happy to say, how much do these licences cost?
Thanks
More and more legislation is this administration’s answer to everything. In the history of business and economics has there been growth in an increase of bureaucracy. Economically speaking Wales is on its knees, there are no markers in health, education, transport, wealth that are better than 20 years ago. Imagine seeing the numbers and pretending that all is well.
More and more legislation from a government who promised to reduce red tape.
As long as the fees and paperwork aren't too onerous I don't really see a problem. Lots of us are licensed as traditional landlords and apart from the fees pushing up rent it isn't a major issue.
Getting meaningful data on the different types of short stay accommodation would be a good thing. Someone housing transient construction workers in their spare bedroom is very different to someone charging top price for a self contained holiday cottage.
It's very easy for neighbours to mislabel the type of letting a property is used for. Tourist areas need accommodation for seasonal workers. Would permanent neighbours describe that as holiday lets or long term letting? How would this scheme class such letting?
This is not the only problem for the holiday letting industry in Wales. Just the straw that broke the camel's back. Holday property owners who cannot meet the stringent new occupancy rules in Wales will also have to pay double council tax instead of the lower business rates. A big ask in an area where occupancy of holiday lets relies on a very short holiday season.
From April 2023 a property needs to be made available for 252 days and occupied by paying guests for 182 days in order to be eligible for business rates.
The Welsh Government will make it possible for local councils to charge higher premiums of council tax on second homes and holiday lets in their areas from 1st April 2023. Local councils will be able to choose the council tax premium that they feel is appropriate for their area.
No prizes for guessing how many Councils will choose less than double!
The SNP are giving local councils the same power but it won't make up for the big black hole already blown in Scottish Councils ' finances despite record support from the UK exchequer.
More red tape, extra cost and death knell for further investment in housing by landlords:(
Just another tax grab, once they know who is doing what they'll hammer them with taxes and inspections, driving up costs in the tourist industry in Wales and ultimately decreasing revenue as people go elsewhere and provision dries up.
These politicians know they can't raise direct taxation because of the backlash from the voters, so they are doing it by stealth. If you have the audacity to want a holiday, we will screw you over indirectly that way you just blame the greedy business owners and not us.
Just as with Selective Licensing, if you run a B&B put up clear signs on your door and website, stating that your fees are subject to the Welsh Tax grab. - Make people understand who's doing this.
The SNP have hit on a winning formula- screwing those earning more than the average wage who are too economically literate to ever vote for them or independence, leaving their benefits claiming voters unscathed.
I'm surprised that Welsh Labour don't have the same opportunity to screw better off non supporters?
We have a landlord licence in Liverpool and we pay lots of money… for nothing in return, neither for the tenants nor the landlord. Pure tax.
I hope you wrote to all your tenants when you increased the rents, advising them to thank x local councillor.
It’s to direct these landlords into traditional letting but is having adverse effect and they’re selling up but government to blind to see it
Good. About time too. Homes are for people to live in. If you want a hotel, go and buy a hotel.
And he's off again.
If you have something constructive to add, I'd love to hear it. I shan't hold my breath though. From fear of asphyxiating.
you first, James. We have all been waiting with bated breath.
It's just above. You're currently commenting on it. I'll copy and paste it here though as a courtesy, just so there isn't any confusion.
"Good. About time too. Homes are for people to live in. If you want a hotel, go and buy a hotel."
ROFL. Constructive, James, not your biased, anti-landlord babble.
Holiday lets are very popular with tourist, are you suggesting there should be no holiday lets allowed?
James
We don't all get the level of benefits that allow us to stay in hotels.
For many working people, a self catering short stay in a short term rental property is all they can afford.
Hi James, not wishing to sound condescending but this is a complicated subject. It is not Landlord's whom have caused the housing issue.
As an example when food went up in the supermarkets it would be like blaming restaurant's, cafe's and pub's which sell food to make money from the food that they can afford to buy when others cannot. Food is for everyone.
I hope you see my point.
Balance is required and thus far the Politicians and organisations like Shelter and Acorn are making the situation far far worse.
I would be interested in your point of view after reading this.
Your analogy doesn't really work though Andy. It would be more like if the supermarkets chose to only sell their food to tourists and local people went hungry.
Yep, those homes for thousands are indeed hotels!
Love that. ‘Homes are for people to live in’. Homes are, yes. But houses should certainly also be available for holiday-makers to stay in.
Why? That's why we have hotels. Or you could have them stay in your home.
When there's no more homeless people, then we can have a discussion about Airbnb.
Thank you for replying James and I take your point. However, it is not the Landlord or business owner fault that Government and local Government have not invested in property. In years gone bye the businesses have built houses and employed persons to then live in these houses. It is costly and so businesses stopped doing it.
It is too easy to blame the homeowner how he wishes to utilise a property that he has bought. There is also the benefit of local businesses for cleaners, gardeners and property maintenance, on top of the holiday trade.
Balance is the key and I would agree that it would be unfair if there were too many properties that were bought as property lets, but then the market forces would dictate.
Another pointless licensing tax is not the answer. In Europe there is a tax that you pay when you rent a room or property. This is on top of the cost of the accommodation. This tax is then used to improve facilities in the local area and makes it a better place to live for everyone. For most being an unpaid tax collector would be preferable to a pointless money grabbing licence.
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This is your most sensible comment yet!
Keep up the silence, it's a big improvement!
You get a tick for the blank response 😂
Unfortunately I made a new comment instead of replying, and there isn't a delete button on this website. It's a double edged sword. Terribly sorry I made a mistake, oh infallible one. I shall try harder to appease you in the future.
Just more revenue raising, rents up again I guess 💵💵😱😱
Hilarious, as ever!!
So let me get this straight. Ludicrously high taxes, licensing, extreme legislation, monstrous fines and an anti-landlord rhetoric from everyone from the Welsh Assembly to the bloke on the street corner is all fine; it’s the presence of holiday cottages in a holiday destination that’s the bit causing the Welsh govt to ‘worry’ about the decline of long-term lets??
I see.
Simple urge local MPs to change this law and these laws are made to grab the money from landlord who work very hard to setup business
What nobody is pointing out is that wales is a refugee sanctuary and demographics are charging overnight, this is called ethnic cleans8ng and genocide. Their can never be enough properties to house economic migrants who invade this country.
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