The Senedd has passed legislation requiring all holiday let and tourist accommodation providers in Wales to register with a national licensing scheme, prompting warnings from the tourism industry about mounting costs and regulation.
The Development of Tourism and Regulation of Visitor Accommodation (Wales) Bill creates a mandatory licensing system for short-term lets across the principality. The Welsh Revenue Authority will publish a national register of all self-catering accommodation, listing their type and location.
Costs and compliance requirements
Welsh Government estimates put the average annual licence cost at around £172. Properties that lack safety certifications – including gas and electrical checks, smoke and carbon monoxide alarms – face additional compliance costs of approximately £556. Those without appropriate insurance could pay a further £500.
This follows Landlord Knowledge’s coverage of Brighton seeking government approval to pilot its own Airbnb licensing scheme, with councils across Britain pushing for tighter short-let controls.
Under the new rules, all providers and anyone advertising accommodation on their behalf must display a valid premises registration number. Those who fail to comply could face fixed penalty notices.
Industry concerns over speed of introduction
North Wales Tourism has warned the scheme could place “another layer of regulatory burden on an industry already facing unprecedented challenges”. Concerns have also been raised during the Bill’s passage about the speed of implementation and limited detail on how it will operate.
The legislation forms part of the Welsh Government’s Programme for Government 2021-2026 commitment to “take forward actions to cap the number of second homes, bring more homes into common ownership and licence holiday lets”, as detailed on the Welsh Senedd website.
Similar regulatory debates are playing out in Northern Ireland, where Propertymark has called for a distinct short-term let category in proposed tourist accommodation rules.
Mark Drakeford, the minister responsible, told Wales Online the measure responds to the “rapidly changing nature of the industry” and represents “a significant step towards attracting visitors to Wales, knowing that accommodation meets the standards they would expect.”
What this means for landlords
- If you own holiday lets in Wales: Budget for licensing fees of at least £172 annually, plus potential compliance costs up to £1,200 if certifications or insurance are lacking
- Watch for: Implementation timeline and detailed guidance – concerns remain about how quickly the scheme will take effect
- Bottom line: Wales joins a growing list of UK regions tightening short-let regulation – landlords with holiday portfolios should review compliance across all jurisdictions
Editor’s view
The direction of travel is clear: devolved governments and councils want more control over short-term lets. Welsh holiday let owners now face annual licensing costs alongside existing safety requirements. Those operating across multiple regions should map their compliance exposure before more schemes follow.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 19 March 2026
Sources: Welsh Senedd, Wales Online, North Wales Tourism
Related reading: Brighton seeks government approval to pilot Airbnb licensing scheme
