The 182-Day Letting Rule: What the Welsh Government Has Decided

You may have seen recent headlines about the Welsh Government’s consultation on the 182-day letting threshold for holiday cottages. We wanted to share a clear and practical summary of what’s been decided, what’s changing, and what it could mean for you over the next couple of years.

The Current Position

The Welsh Government has confirmed that the 182-day rule will remain in place. To be assessed for non-domestic (business) rates rather than council tax, a self-catering property must still be available to let for 252 days and actually let for at least 182 days in a 12-month period.

Properties that fall short will be reclassified for council tax and may face a second-home premium set by the local authority, which can be as high as 300% in some areas.

The government says the policy is working, pointing to data suggesting that around 60% of self-catering businesses are meeting the threshold.

What Is Changing

The Welsh Government has committed to a small number of targeted changes intended to add flexibility. These are expected to be introduced between April 2026 and April 2027:

• Three-year averaging: If you narrowly miss the 182-day target in a single year, you will be able to demonstrate compliance using an average across three years.

• Charitable letting allowance: Up to 14 days per year donated to a registered charity will count towards your 182 days.

• One-year transition period: From April 2027, properties moving back into council tax will pay the standard rate for the first year, before any premium can be applied.

Our Ongoing Concerns

We do not believe that this presents a fair or workable solution for hard-working holiday cottage owners. While the government’s proposed changes are presented as meaningful flexibility, they amount to narrow concessions for a policy that many in the sector continue to find fundamentally flawed.

The focus on limited measures such as three-year averaging does not address the wider issue. The changes offer some relief to operators who narrowly miss the threshold, but provide little protection for businesses affected by genuinely unforeseeable events or structural challenges beyond their control.

Dioni remains concerned that maintaining the 182-day threshold in its current form risks placing policy consistency ahead of the long-term sustainability of rural tourism businesses. We want to assure you that we will continue to represent the interests of our cottage owners as part of our Let’s Review 182 campaign.

You can read more about our campaign here: https://www.dioni.co.uk/182-campaign-2/

An Opportunity To Ask Questions Directly

With Senedd elections due to take place in May 2026, the 182-day rule is expected to be a key issue. Opposition parties are proposing alternatives ranging from significantly lower thresholds to the removal of the rule altogether.

Against this backdrop, the BBC is hosting Walescast: Your Voice, a Question Time–style debate in Aberystwyth on Wednesday 11 February 2026. The programme will bring together a panel of Welsh politicians and offer members of the audience the chance to put questions to them directly. If you would like to apply to be part of the audience, further details are available on the BBC website here: https://www.bbc.co.uk/send/u224766466

There is no guarantee that you will be selected, but for cottage owners affected by the 182-day rule, it might be a timely opportunity to raise concerns, seek clarity, and share real-world experience in a public forum.

As always, we’ll continue to keep you informed about our Let’s Review 182 campaign efforts as this policy and election year develops, and we’re here if you’d like to talk through what this means for your own holiday cottage business.