BREAKING: ‘Rent Smart Wales’ style scheme revealed for Welsh holiday lets

The Welsh Government wants to know what landlords who operate holiday accommodation in the country think of its proposed regulation of the sector.

Following a deal with Plaid Cymru, the Welsh Labour Government has committed to a statutory licensing scheme for holiday lets, which is likely to be very similar to the existing Rent Smart Wales scheme for traditional lets.

This would see properties on platforms such as Airbnb or Booking.com required to meet much tougher conditions before being offered for rent, including all providers to evidence that they have met certain requirements in order to operate.

Permission

This include having the correct insurance for accommodation providers, confirmation of planning permission to allow the premises to be let, evidence of a fire risk assessment, gas safety certificate, and proof of electrical safety, to list a few examples.

The scheme is part of a package of measures to address the negative impact second homes and short-term holiday lets can have on the availability and affordability of housing for local people in Welsh communities.

A licensing scheme would include a database of who is operating in the sector as it is “currently not possible to determine how many visitor accommodation businesses there are in Wales, or in any given community,” the consultation document says.

It is also expected that the licensing scheme will be backed up by a mechanism – and funding – to ensure property owners comply with the scheme.

Economy Minister, Vaughan Gething (pictured) says one key thrust of the scheme would be to ‘level up’ regulation and compliance – many hotel and B&B owners argue that they must comply with fire and safety legislation, for example, while properties on Airbnb do not have to.

“Over the course of the past year, we have been exploring and engaging with stakeholders on how such a scheme could work in Wales,” he adds.

“As the consultation now opens, we would like to hear further views and would encourage the sector to respond to the consultation.”

His opposite number at Plaid Cymru, Siân Gwenllian, says the initiative is part of a wider effort in Wales to take “radical and immediate action to address housing market failures and the lack of affordable housing, using the planning, property and taxation systems to make a difference.

“There has been a huge increase in the short-term holiday let sector in recent years which is exacerbating the housing crisis in Wales. While we have a regulatory framework in place in Wales for private rental accommodation,” she says.

Read the consultation document and respond here.