Why Wales Needs a Fairer Rule for Holiday Lets | Let’s Review 182
Published on 27 Nov 2025 by Amy GreenwoodAcross rural Wales, small, family-run businesses are speaking up about the impact of the Welsh Government’s 182-night rule for holiday lets.
A policy that was implemented in 2023 as an attempt to discourage second homes is now placing huge pressure on genuine, hard-working local operators. Cottage owners, farmers, tradespeople, housekeepers and publicans are all feeling the effects of a rule that does not reflect how tourism really works in rural Wales.
The experiences of these small business owners are what motivated us to launch Let’s Review 182 – Dioni’s campaign asking the Welsh Government to rethink the system and adopt a fairer, evidence-based approach.
What’s the problem with 182 nights?
Under the current rules, a holiday cottage must be available for 252 days and actually let for 182 days each year to qualify for business rates. If the target is missed, a property is reclassified as a second home and charged council tax, sometimes with premiums of up to 300 per cent.
In theory this was meant to prevent under-used second homes. In practice, it is punishing holiday cottage owners – the small business owners who keep rural tourism going.
Tourism in Wales is highly seasonal, shaped by weather, travel costs and school holidays. Many rural properties simply cannot reach 182 booked nights without resorting to unsustainable price cuts. Industry figures now suggest that around 40 per cent of Welsh holiday lets have failed to meet the requirement since it was introduced in April 2023.
A farmer’s story: intolerable mental stress
One hill farmer in Meirionnydd, who asked to remain anonymous, recently shared his experience with us.
He and his family converted an old stable and workshop into a 5-star holiday cottage to help support their farm during months when there is no income from lamb sales. The building can only be used as holiday accommodation because of planning restrictions, yet he was treated as though he owned a second home.
When the new rule came in, he found it was being applied retrospectively. He was suddenly told he had failed to meet the 182-night requirement for a period before the law even existed.
He told us:
“We fully complied with the old rule of 140 days availability and 70 days actually let. But when the rules changed to 252/182 in April 2023, we were suddenly told we hadn’t met the new threshold for the previous year. Despite having met all the rules as they stood at the time, we were removed from the business rating list and hit with a council tax bill running into thousands of pounds. The process has been inconsistent, confusing, and deeply unfair.
“We invested savings in the cottage conversion to help sustain the family business during months when there’s no income from the sale of lambs. The farm has been in the family for generations, and the cottage is a genuine small business which in no way could be considered a second home – planning conditions prevent it from being used as a residential dwelling.
“I can’t overstate the mental stress. The 252/182 rule is hitting farmers and rural businesses already facing uncertainty around the Sustainable Farming Scheme, the proposed licensing requirements, the tourist tax, and changes to Inheritance Tax. We’re facing a race to the bottom on pricing to fill 182 days, while costs keep rising. We’re not alone in asking ourselves whether it’s worth carrying on.
“The Welsh Government’s own information was simply not accurate when giving the effective date of the changes. Politicians need to be held to account for the decisions they reach, and the profound consequences that result.”
It is not helping housing either
One reason given for the rule was the hope that more cottages would return to residential use. Estate agents in rural Wales say this is not happening. Rhys Elvins, from Elvins Estate Agents in Abersoch, says the policy is causing stagnation rather than opportunity.
“The policy assumes there’s a queue of local buyers waiting for these properties. There isn’t,” he said. “We’re seeing many ideal first-time buyer properties for sale in the area which remain unsold – so where are all the local people who supposedly need them? Families move to where the jobs are, and there just aren’t enough jobs here.
“The holiday cottages coming onto the market are often large, high-spec houses that are way beyond the average family’s budget. What we’re seeing is properties stuck in limbo. They can’t operate as viable holiday lets under the 182 rule, but they’re not selling as residential homes either. The market has essentially frozen, which helps nobody.”
The knock-on effect on local businesses
Empty cottages mean fewer visitors. Fewer visitors mean less spending. This has real consequences for the shops, suppliers and hospitality venues that keep rural communities going.
Fred Brooks, who runs a pub with rooms and a restaurant in Barmouth, says the policy has created an impossible situation for rural tourism businesses.
“We’re seeing it directly – local tradespeople telling us their work has decreased because holiday cottages are standing empty or being sold off. It hits pubs, cafés and restaurants hard – especially through winter months, when local spending can make the difference between breaking even or going under.
“Running a holiday cottage in Wales now means taking on huge financial risk – and a lot of that, like weather or the wider economy, is beyond anyone’s control. The 182 rule is part of a pattern of policies that work against year-round tourism. We’re also seeing shops and cafés incentivised to shut for half the year to keep their income under the VAT threshold, making it harder to attract visitors in shoulder seasons.
“We need a system that recognises reality – that Welsh tourism is seasonal, that weather matters, and that small businesses need breathing room, not impossible targets.”
A chance to get it right
Dioni’s Let’s Review 182 campaign supports efforts to address housing pressures in Wales, but we believe that the current rule for holiday cottages is too blunt. We are calling for two simple changes:
- Reduce the minimum threshold to 105 nights. This was the most widely supported option in the Welsh Government’s own consultation.
- Introduce a two-year grace period so one difficult year does not force businesses into crisis.
These changes would support local housing needs while protecting the small, community-rooted businesses that keep rural Wales working.
How you can support the campaign
Although the recent Welsh Government consultation has now closed (20/11/2025), our campaign continues. You can still help:
- Write to your Member of the Senedd – A bilingual template letter is available on our website to make this easy.
- Sign up for campaign updates – We will keep supporters informed as the campaign progresses.
Full details, resources and templates are available here: 👉 https://www.dioni.co.uk/182-campaign-2/
Your voice genuinely makes a difference. Together, we can push for a fairer, more sustainable approach to tourism and rural business in Wales.
