Consultation: licensing Welsh holiday accommodation

The licensing scheme seeks is one of a number of measures (including increased rates of Land Transaction Tax)  introduced to address the negative impact of second homes and Holiday Lets on the availability of housing for local communities.

The scheme will require providers of all visitor accommodation (which would include holiday lets) to obtain and maintain a license.

Following consultation with key stakeholders, a formal consultation seeking views on how the scheme could be implemented has been issued.

This consultation seeks to establish views on:

• The level of support for a licensing scheme.
• Whether the scheme would level the playing field for and increase confidence in providers of visitor accommodation.
• Whether there was support for a national approach to the scheme but with enforcement undertaken locally.
• Whether there was support for all visitor accommodation being included in the scheme or whether there should be exemptions.
• Views on limited licenses for one-off or annual events.
• The amount of information visitor accommodation suppliers should be required to provide.
• The approach to be undertaken for compliance inspections.
• The appropriateness of a fit and proper test for providers of visitor accommodation.
• Variations in any licensing fee based on the size of accommodation, duration of let availability and standardisation between providers.
• The renewal frequency.
• Data sharing of licensing information.

Consultation questions are shown in the following tab.

Replies are requested by 17 March 2023.

Useful guides on this topic

Furnished Holiday Letting
What is Furnished Holiday Letting? How do you qualify for Furnished Holiday Letting? What are the rules for Furnished Holiday Letting?

Welsh Land Transaction Tax
What is Land Transaction Tax? How does it operate? What reliefs are available? 

Wales
This section covers taxes devolved to Wales.

External links

Statutory licensing scheme for all visitor accommodation providers in Wales

Question 1

Do you agree or disagree with establishing a licensing scheme for all visitor accommodation in Wales?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answers? What impact, positive or negative, do you think a statutory licensing scheme for all visitor accommodation will have?

Question 2

If you disagree with the proposal to establish a licensing scheme, do you agree with the creation of a registration scheme for all visitor accommodation in Wales?

• Agree
• Disagree – I do not want a licensing scheme or a registration scheme
• Neither Agree or Disagree
• What are the reasons for your answers? What impact, positive or negative, do you think a registration scheme for all visitor accommodation will have?

Question 3

Do you agree or disagree that introducing a statutory licensing scheme as described will ensure a level playing field for all accommodation providers operating in Wales?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answers?

Question 4

Do you agree or disagree that the Welsh Government needs a register of visitor accommodation providers in Wales to know who is operating in the industry?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answers?

Question 4A

Do you agree or disagree that local authorities need a register of visitor accommodation providers in Wales to know who is operating in the industry?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answers?

Question 5

Do you agree or disagree that introducing a statutory licensing scheme will ensure an effective platform for communication between the Welsh Government and local authorities and providers of visitor accommodation in Wales?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answers?

Question 6

Do you agree or disagree that introducing a statutory licensing scheme will ensure enhanced confidence in visitor accommodation and accommodation providers in Wales?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answers?

Question 7

It is our view that a statutory scheme should be delivered on a hybrid basis, taking a national approach to core elements such as registering providers and processing applications, with enforcement to be undertaken by local authorities as required. Do you agree or disagree with this?

• Agree
• Disagree. If you disagree, how best do you think the scheme should be administered and enforced?
• Neither Agree or Disagree
• What are the reasons for your answers?

Question 8

It is proposed that all visitor accommodation is considered within the scope of a statutory scheme. Do you agree or disagree with this?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 9

Can you identify any visitor accommodation that should be exempt from a statutory scheme and what are the reasons for your answer (e.g.accommodation that is used solely for education purposes or vulnerable groups)?

Question 10

We are proposing that whoever is responsible for the letting of the accommodation for holiday purposes on caravan and/or camping sites (i.e. the park owner or individual owner) should be required to obtain a licence. Do you agree or disagree with this proposal?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 10A

Do you have any other comments or suggestions relating to a statutory scheme and the caravan and camping sector?

Question11 

We are proposing that a license is required even if the visitor accommodation is operating infrequently (including one night per year).
Do you agree or disagree with this proposal?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 12

Do you agree with the need for a limited licence for one-off or annual events?

• Agree
• Disagree. If you disagree, do you have any suggestions for how providers of accommodation who operate on a temporary basis for one-off events could be regulated to ensure visitor safety and fairness?
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 13

We are proposing that a provider of visitor accommodation should supply the above information/documentation and be required to provide evidence/confirmation that they comply with the requirements as detailed above. Do you agree or disagree with this proposal?

• Agree
• Disagree. If you disagree, what information/documentation/evidence should providers have to produce in order to apply for a licence?
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 14

We are proposing that inspections are carried out on a 1:50 ratio using a risk-based approach and additional inspections in response to customer complaints or other concerns brought to the attention of the licensing authority. Do you agree or disagree with this proposal?

• Agree
• Disagree. If you disagree, what would you propose doing instead to ensure licence holders meet the relevant criteria?
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 15

Do you agree with the principle that visitor accommodation providers that do not comply should be subject to enforcement measures?

• Agree. If you agree, which enforcement measures do you think should / should not be used?
• Disagree. If you disagree, what alternative measures would you suggest to ensure compliance?
• Neither agree or disagree
• What are the reasons for your answer?

Question 16

Do you agree that a fit and proper person test or similar should be included as part of the scheme requirements for all visitor accommodation providers?

• Agree
• Disagree. If you disagree, what other ways do you think could be used to establish that providers are suitable people to let accommodation to visitors?
• Neither Agree or Disagree
• What are the reasons for your answer? What matters do you think should or should not be considered by the licensing authority when deciding if a person is fit and proper to be granted a licence?

Question 17

We would like your views on whether all visitor accommodation providers should pay the same standard fee or should the fees be scaled (i.e. based on the type and size of the visitor accommodation)?

Question 17a

Do you agree that all visitor accommodation providers should pay the same fee?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 17

Do you agree that fees should be scaled based on the size of the visitor accommodation?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 18

In Question 12 , we asked about Limited licences for one-off or annual events. Do you agree or disagree that providers could apply for a one-off licence at a reduced cost.

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 19

How often should a visitor accommodation provider be required to renew their licence?

• Annually
• Every 2 years
• Every 3 years
• Every 4 years
• Every 5 years
• What are the reasons for your answer?

Question 20

If the frequency of renewal is less often than annual, do you agree or disagree that visitor accommodation providers be required to do an annual review i.e. upload up-to-date evidence/confirmation that they comply with their licence requirements?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 21

We are proposing that as part of the licence application process, accommodation providers are asked to give their consent to the information they supply being shared between key authorities and partners for the purposes of communication, safety, compliance, enforcement and implementation of a visitor levy. Do you agree or disagree with this proposal?

• Agree
• Disagree. If you disagree, can you say which information (if any) you do consider should be shared between key authorities and partners?
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 22

Do you agree or disagree with the proposal that all visitor accommodation providers should be required to display their licence number on all advertising/marketing materials and at their visitor accommodation and be subject to penalties if they do not comply?

• Agree
• Disagree
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 23

Do you agree or disagree with the proposal that all online travel agents (OTAs), travel trade organisations, other booking and social media channels, marketing platforms and self-catering agencies SHOULD BE REQUIRED to display the licence number of the visitor accommodation they are promoting on their listings and/or adverts and be subject to sanctions if they deliberately or negligently advertise unlicensed visitor accommodation?

• Agree – Which Sanctions do you think should be imposed in these circumstances?
• Disagree – Are there any sanctions in particular that you do not consider should be imposed in these circumstances?
• Neither Agree or Disagree
• What are the reasons for your answer?

Question 24

We would like to know your views on the effects that a statutory licensing scheme for all visitor accommodation would have on the Welsh language, specifically on opportunities for people to use Welsh and on treating the Welsh language no less favourably than English. What effects do you think there may be? How could positive effects be increased, or negative effects be mitigated?

Question 25

Do you have any insight or evidence on the impact of any different types of schemes that are already running, or approaches taken elsewhere in the world, that you think the Welsh Government could learn from or implement?

Question 26

Do you have any other comments on the proposed statutory licencing scheme not covered in your answers to any of the above questions?

Question 27

Is there anything else you wish to say that you think would help the Welsh Government proceed with their proposals?