30-07-2025
Holiday let owners hit by council tax bombshell told 'pay up or sell up'
Across Wales, holiday let owners have been hit with unexpected and steep council tax demands, leaving many fighting to stay afloat. The charges follow new government rules on rental thresholds, with nearly half of self-catering businesses now operating at a loss or just breaking even.
North Wales Live readers are divided—some fear this could destroy Welsh tourism, while others say it's a needed change to give locals a fair shot at owning homes.
A little-known change in legislation has triggered council tax demands—often amounting to tens of thousands of pounds—without prior notice. In most cases, owners are being given just seven days to pay, under threat of legal action.
The charges stem from a rule about the number of nights a property must be let, which critics say has pushed the holiday rental industry to the brink. One family with a rental in Abersoch, Gwynedd, is facing a bill of several thousand pounds despite believing they had met all legal requirements.
They were unaware the 182-night letting threshold was applied retrospectively, meaning they fell short during their first year. As a result, they've been back-charged for council tax over three years—making the original 70-night guideline irrelevant for most lets in 2022–23.
The impact on owners is already visible. A recent survey by PASC Cymru found that 47% of those now paying higher council tax are operating at a loss.
Local councils argue the policy is necessary to curb the rise of second homes and ease pressure on the housing market. But others fear it will come at the cost of Wales' vital tourism economy.
'It's difficult to challenge the legislation,' said Nicky Williamson of PASC Cymru. 'Holiday let owners have few options.'
Commenter Idontstop thinks: 'There needs to be a review of the legislation as its introduction has not addressed its main aim and has created further issues. There is a glut of holiday homes now on the market, they remain unaffordable for the majority of local people, fewer holiday homes will impact tourism and therefore the local economies. There are tens of thousands of static caravans and lodges across north Wales, with occupants here 9 months of the year but they do not pay council tax but utilise all the local services. Whilst Welsh families who wish to hold on to family homes in Wales that they have inherited from their parents are forced to pay premium council tax rates or sell to people from outside Wales.'
Angleseygirl writes: 'We are having to give ours up. It's a small one bed apartment and sleeps 2. We are, for about 9 months of the year, really busy. We suddenly received a letter from the council saying they want £250 per month council tax. We then received a call from our insurers saying they had new underwriters and they had put our insurance up from £80 per month, to £280. We can't do it, it's an impossibility. There is no way we can pay out £530 per month. We are open all year but we can't force people to book with us. So in a couple of months we are closing for good, it's such a shame, and the knock on effect to local businesses is awful. '
Butterfly1722 agrees: 'Increasing council tax for holiday lets is not helping anyone other than the greedy government and councils. We all know almost every council is on its knees. They are putting the owners of these holiday lets in debt and they will be forced to sell. I understand that local young couples cannot find properties in the area they were brought up in to purchase a property, but first time buyers living in the area cannot afford these prices. It's a no win situation and it sounds like it's causing misery to the holiday let owners.'
Steamnut is outraged: 'Whatever your thoughts on second homes and letting, retrospective legislation like this, where the owners cannot change what actually happened, is sneaky and underhand. Imagine the outcry from motorists that, on a certain date, had travelled on a road with a speed limit of 30mph and, when the limits were reduced to 20mph, these motorists were all given backdated speeding tickets? There would be a massive 'unfair' outcry. The same sentiment should apply to the letting industry.'
Tumbiloo says: 'Blame it on the 2nd homes that are causing the housing shortage rather than establishing industry for people to work and earn and save, especially in North Wales.'
DP reader agrees: 'That's a shame for them, but not as much of a shame as people not being able to find a house to live in. So, will we be able to increase our local housing stock or will they continue to let the properties and cry about the council tax?'
Jnrm retorts: 'People can't sell as locals don't want to live in remote cottages. They only appeal as holiday lets!'
Daffyddthomas writes: 'Pay up or sell up, but stop complaining.'
