Thinking of buying a holiday let here in South Wales? We’re here to help you succeed!
Investing in a holiday let in South Wales can be an exciting and rewarding investment, offering a chance to generate income while enjoying everything this picturesque region has to offer.
Whether you’re dreaming of a peaceful coastal retreat or a bustling holiday home in a lively town, South Wales has something for every type of visitor and investor.
This guide will take you through everything you should think about if you’re thinking of buying a second home in Wales, how to set up a successful holiday let, as well as how to manage it effectively to ensure your venture thrives…
1. Understanding the Holiday Let Market in South Wales
When buying a holiday let, location is key to attracting guests and ensuring a steady income stream. South Wales boasts a diverse range of destinations, from sandy beaches and historic towns to rugged national parks.
Top destinations to buy a holiday let South Wales
Cardigan Bay: Famous for its golden beaches, charming villages like Aberaeron, and opportunities for dolphin spotting, Cardigan Bay attracts families and nature lovers year-round.
Pembrokeshire: Home to the Pembrokeshire Coast National Park and the iconic town of Tenby, this region is perfect for adventure-seekers and beachgoers.
Carmarthenshire: Known as the “Garden of Wales,” it features stunning countryside, the National Botanic Garden of Wales, and historic landmarks like Laugharne Castle.
Mid-Wales: Including the Brecon Beacons, this area appeals to visitors looking for hiking, stargazing, and tranquillity.
Still not sure where to buy a holiday let? Head to our guide on the 7 Best Places for Holiday Letting in West and South Wales for some inspiration.
Tourism Trends in South Wales
Tourism in Wales contributes over £2.5 billion annually to the economy, with more than 10 million overnight stays recorded each year.
Coastal areas, particularly Pembrokeshire and Cardigan Bay, consistently achieve high occupancy rates, especially during summer and school holidays.
Properties in these regions often report occupancy rates of 85-90% during peak periods, making them ideal locations for holiday let investment.

2. Choosing the Right Property
The success of your holiday let depends largely on the type of property you choose. Keep these factors in mind:
- Proximity to Attractions: Properties near beaches, heritage sites, or scenic hiking trails are highly desirable.
- Size and Target Audience: Decide whether to target couples, families, or large groups. A cosy one-bedroom cottage might suit romantic getaways, while a larger home is better for family holidays.
- Amenities: Features like hot tubs, log burners, and gardens can increase bookings. High-speed internet and pet-friendly policies are increasingly important to travellers.
- Sustainability: Eco-friendly features, such as energy-efficient appliances and solar panels, can appeal to environmentally conscious guests.
Top Tip: Allowing pets in your holiday let can significantly boost its appeal, especially in Wales, where demand for pet-friendly properties has risen by an impressive 60% since 2019. By catering to this growing market, you can attract a larger audience of travellers looking to bring their furry companions along. Prioritise properties with secure gardens or easy access to nearby walks, as these features are highly desirable for pet owners.
For more detailed advice, check out our dedicated blog on accepting dogs in your holiday let to make your property truly stand out.

3. Legal Considerations and Regulations in Wales
When buying a holiday home in Wales, it’s essential to adhere to local regulations:
Planning Permission
Some properties may require planning permission to be used as holiday lets. Contact your local council for clarification.
Health and Safety
You must provide a safe environment for guests, including:
- Installing smoke and carbon monoxide detectors.
- Conducting gas and electrical safety checks annually.
- Completing a fire risk assessment and offering clear evacuation instructions.
Tax and Business Rates
In Wales, holiday lets rented for at least 182 days per year may qualify for business rates instead of council tax, provided the property is actually let for a minimum of 70 days during that period.
If your property meets the criteria for a Furnished Holiday Let (FHL), you could benefit from tax advantages, such as the ability to offset certain expenses against your income. It’s important to consult with a tax advisor or local council to ensure your property meets the specific requirements for business rates.
Insurance
Standard home insurance policies typically won’t cover holiday lets. Opt for specialist holiday let insurance that includes public liability and loss of rental income.
Head to our Comprehensive Guide to Holiday Let Regulations in Wales for more detailed information.

4. Financing Your Holiday Let
Holiday let mortgages are different from residential mortgages. If you’re considering buying a holiday let please be aware that lenders will typically assess:
- Your ability to meet monthly repayments during off-peak seasons.
- A larger deposit (often 25% or more) than required for a standard mortgage.
Working with a financial advisor or broker experienced in holiday let financing can help you secure the best deal.

5. Preparing the Property for Guests
A well-presented property enhances guest satisfaction and leads to positive reviews. Consider the following:
- Interior Design: Use high-quality furnishings and stylish décor to create a welcoming atmosphere. Coastal or rustic themes often work well in South Wales.
- Amenities: Stock the property with essentials like cookware, toiletries, and fresh linens. Extras like smart TVs, games, and a welcome hamper with local treats can make guests feel special.
- Accessibility: Ensure the property is accessible for all guests, including those with mobility issues.
Our blog on making your holiday let stand out from the crowd will help you ensure your property is as good as it can be.
Top Tip: Guests expect great value for money, which includes staying in a property that is clean, well-maintained, and equipped with essential items. As a holiday let owner, it’s important to budget for any upgrades or extras needed to ensure your property meets high standards. Before investing in a holiday let in Wales, consider the costs of furnishings, décor, and amenities like kitchen essentials, fresh linens, and thoughtful touches that elevate the guest experience. A well-prepared property is key to attracting bookings and positive reviews.

6. Marketing Your Holiday Let
Effective marketing is key to attracting bookings:
- Professional Photography: Showcase your property with clear, well-lit images that highlight its best features.
- Compelling Listings: Write detailed descriptions and highlight unique features and nearby attractions.
- Social Media and Websites: Promote your property through social media channels and consider setting up your own website.
Coast and Country Holidays can handle much of the marketing for you, ensuring your property reaches a wide audience and stands out among competitors. We do the hard work, while you sit back and watch the bookings come in.

7. Managing Bookings and Guest Relations
Decide whether to self-manage or hire a professional agency:
- Self-Management: This gives you control over bookings and guest communication but can be time-consuming.
- Management Services: Agencies like Coast and Country Holidays handle everything from advertising to bookings, guest enquiries, and even cleaning. This frees up your time and ensures a professional experience for your guests.

8. Maintenance and Housekeeping
Regular maintenance is essential to keep your property in top condition:
- Schedule deep cleaning between bookings.
- Address repairs promptly to avoid negative reviews.
- Consider seasonal updates, such as cosy blankets in winter or outdoor furniture in summer.

9. Financial and Tax Management
Keep detailed records of your holiday let’s income and expenses. This includes:
Such records are vital for accurate tax returns and help assess your business’s profitability.

10. How Coast and Country Holidays Can Help
Managing a holiday let can be challenging, especially for first-time owners. Coast and Country Holidays offers a comprehensive range of services to simplify the process:
- Multi-million-pound marketing to maximise your property’s visibility and bookings.
- Professional guest management to ensure seamless communication and satisfaction, 24/7.
- Maintenance and cleaning services to keep your property in prime condition.
- Use of a revenue management system that adjusts prices in real-time to match market trends and demand, boosting your profits.
Our local expertise in South Wales holiday lets can save you time and effort, allowing you to focus on enjoying the rewards of your investment.

Final thoughts
Buying a holiday let in South Wales is an exciting opportunity to combine investment with lifestyle benefits. With its stunning scenery, vibrant culture, and year-round tourism appeal, South Wales is an ideal location for a successful holiday let business.
By carefully researching the market, selecting the right property, and partnering with experts like Coast and Country Holidays, you can set up and manage a thriving holiday let with ease. Start your journey today and tap into the growing demand for holiday accommodation in this beautiful region!