Wales' finance minister Elin Jones has confirmed a review of the 182-day rule for self-catering properties, which determines whether a property qualifies for lower business rates or faces high second-home council tax premiums. The rule, combined with a requirement to be available to let for 252 days, has been criticised by businesses that say it penalises genuine letting operations.
Background of the 182-Day Rule
The threshold was introduced by the previous Welsh Government to protect communities from the impact of second homes. However, Plaid Cymru MS Elfed Williams, who represents Bangor Conwy Môn, said while steps to reduce holiday lets and grow housing stock are welcome, cases have arisen where genuine letting businesses are being penalised.
Minister Jones stated: "I have already, as a relatively new minister, started the work of discussing how we can move ahead in reviewing the 182-day threshold and to consider whether new exemptions are required on a national level in relation to this policy. I know that the policy hasn't landed in the right place at the moment and that we do need that review."
Consultation and Possible Changes
A consultation launched last August by the previous government proposed two changes: allowing holiday let owners to use an average of 182 days let over several years, and allowing up to 14 days of free holidays donated to charity to count towards the 182-day target. In February, then minister Mark Drakeford said the law would remain in place.
Jones added: "I am therefore currently discussing options as to how I can come to a conclusion and make a decision as to how we should review this, and I will include this Senedd and, more importantly, the relevant sectors in the wider debate as to what the most effective reforms of this policy would be."
