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Incredible beaches, historical landmarks, beautiful countryside and ample opportunities to experience Wales at its best make South Wales the perfect place to have a staycation. 

Holiday let investment in South Wales can be a great opportunity for several reasons. The region is known for its stunning landscapes, including the Brecon Beacons, Pembrokeshire Coast, and the Gower Peninsula, which attract tourists year-round. South Wales benefits from a strong tourism industry, with visitors drawn to its natural beauty, rich cultural heritage, and historical sites like Cardiff Castle and St. David’s Cathedral.

When considering purchasing a holiday let in South Wales, the change in the holiday let sector can make navigating the decision tricky, but we can help guide you through all the new regulations.

If you’re wondering whether a holiday let in South Wales would be a good investment, we’ve put together this blog to delve further in to the facts… 


Thinking of investing in a holiday home in South Wales?

Coast and Country Holidays saw a strong booking percentage with a 78% occupancy rate throughout summer, even with the current economic climate. In 2024, bookings per property increased by 6%, and revenue per property increased by 5% driven by customers making multiple short-break bookings. These booking statistics show how much holiday letting in South Wales is thriving.

With a growing demand for short-term rentals, especially with popular destinations like Tenby, Swansea, and the Vale of Glamorgan, a holiday let in South Wales can provide consistent rental income. The region also offers relatively affordable property prices compared to other parts of the UK, making it an attractive option for investors looking for high returns, the average income for a holiday let in South Wales is anywhere from £16,000 to £50,000 on premium properties.

You can easily optimise your bookings by adjusting your property to attract more guests, such as offering a hot tub can increase your revenue by 37% and allowing pets can increase it by 18%.

South Wales is a great place for an experienced homeowner, or even a first-time buyer. The area has the perfect amount of opportunity for you to break into the industry successfully.


Reasons why investing in a holiday home in South Wales is a good idea

Let’s explore why investing in a property in this spectacular area of the world is a good idea.

1. Stunning Natural Beauty

South Wales is home to beautiful landscapes, from the Brecon Beacons National Park to the Gower Peninsula, offering stunning scenery that attracts tourists year-round.

2. Strong Tourism Demand

South Wales is a popular destination for tourists, both from the UK and abroad. It offers a variety of experiences, including coastal retreats, countryside adventures, and cultural attractions. This demand for accommodation can make holiday lets a profitable investment.

3. Cultural and Historical Appeal 

South Wales has a rich history and vibrant cultural scene. Cities like Cardiff offer attractions such as Cardiff Castle, museums, and festivals. The area’s cultural heritage can draw tourists looking for more than just a place to stay, but an experience.

4. Affordable Property Prices 

Compared to other popular tourist destinations in the UK, property prices in South Wales can be more affordable, making it an attractive option for investors looking to enter the holiday let market.

5. Growing Interest in Staycations

The rise in “staycations” due to changing travel habits (especially post-pandemic) has made domestic tourism more popular. South Wales, being close to major cities like Cardiff and Bristol, is an easy-to-reach destination for weekend getaways or longer holidays.

6. Rental Yields

If managed well, holiday lets in South Wales can offer attractive rental yields. With the right location, marketing, and property management, you can generate significant income during peak tourist seasons.

7. Adventure and Outdoor Activities 

South Wales offers an abundance of outdoor activities, such as hiking, mountain biking, surfing, and kayaking. This makes it ideal for visitors looking for adventure and nature-based experiences, creating a steady demand for holiday accommodation.

8. Improved Transport Links

South Wales benefits from a strong transport network, with easy access to the M4 motorway, rail links to London and other major cities, and proximity to Cardiff Airport. This makes it convenient for visitors to travel to the region.

9. Government Incentives for Short-Term Rentals 

The Welsh Government has implemented policies aimed at boosting tourism and supporting the short-term rental sector, such as tax reliefs or funding for eco-friendly projects.

If you’ve got an eye for a great location and are ready to get into property management, South Wales has a lot of potential for holiday let investments!


Features that maximise investment potential

Knowing what guests look for in a property is the pinnacle to ensuring your investment is maximised to its potential. It’s important to be realistic when buying a holiday let, you have to take a step back and ask yourself, why would someone want to book my property?

These key features are definitely things to be considered when investing in a property…

1. Prime Location

Choosing the right location is critical. Proximity to popular tourist attractions, natural landmarks, beaches, or charming towns like Swansea, Cardiff, or Aberystwyth can drive demand. Being near hiking trails, beaches, or cultural sites is a big plus. Locations that are easy to access, with good transport links, will also increase bookings. Check out our guide to the 7 best places for holiday letting in West and South Wales.

2. High quality amenities 

Having amenities that people search for when looking for a property will increase your revenue, adding things such as a hot tub, reliable Wi-Fi, log burners, or even a BBQ in the garden will make all the difference.

3. Pet-Friendly Policies

Properties that allow pets see a significant increase in bookings and revenue, and guests being able to bring their dogs with them is a massive upside to a staycation.

Nearly half of UK holidaymakers are looking for properties that allow pets, especially in areas such as South Wales which has a rich countryside with plenty of dog walking opportunities.

4. Seasonal Adaptations 

Offer tailored experiences that reflect the seasons. For example:

Winter: Promote your property as a cosy retreat with log fires, blankets, and a warm atmosphere. Offer winter-themed activities or discounts during the off-peak months.

Summer: Emphasize outdoor spaces, beach access, and local summer events. Provide beach gear, bikes, or even surfboards for guests.


Challenges to consider when buying a holiday let in South Wales…

When making such a large investment into a holiday let in South Wales, there are a few things you might want to consider. Wales has very specific laws and regulations regarding second homes in Wales, with the intention of protecting property prices and local communities.

1. Tourism tax

The Welsh Government has brought in a new tourism levy, which aims to balance out the economic benefits of tourism with the cost it can cause to local communities that face a high level of visitors. Each county will be rolling these new regulations over the coming years, this tax will apply to overnight stays, including holiday lets, in popular destinations like South Wales.

The tourism levy may affect the cost for investors, taking this into account when doing pricing strategies would be beneficial to keep prices competitive and profitable.

2. The 182-day rule

The 182-day rule is the key regulation affecting holiday lets, specifically relating to the operation of short-term rental properties.

If your property is available for 252 days a year and is booked for 182 days of the year, you can qualify for business rates instead of council tax.

This policy was made to distinguish second homes that aren’t rented out regularly from genuine holiday lets. Meeting the criteria to qualify for business rates may be difficult, especially during off-peak months, and those who don’t meet that goal may face reclassification under council tax, often at higher premiums due to second-home regulations in many Welsh counties.

3. Variable income due to seasons 

Due to demand income can vary between seasons, summer can have an increase in income and bookings, whereas winter months may be slightly quieter because of the colder, shorter days.

Utilising strategic marketing tools and doing winter promotions can encourage more bookings throughout those colder months, as well as making amendments to make the space feel cosy and warm. These small changes can get your property a steady stream of income all year round.

4. Planning permission 

To convert a home into a holiday let, you will need planning permission for the change of use from residential to a holiday let. Many counties require this to elevate the effect the sale of holiday homes has on local communities.

Each county has different regulations on this, so it’s best to check out each area’s land regulations for more detailed information. Check out our blog about holiday let regulations in Wales.


How can Coast and Country Holidays help you succeed in your investment?

We’re pleased to say our bookings per property increased by 6% since 2023, and revenue per property increased by 5%. These were increased by guests booking more short-term breaks, showing that even with some hurdles, your holiday let can be successful.

Unsure of how to get started?

Here at Coast and Country we have years of experience in the letting industry, we can help you get started on a property you already own or even assist you in purchasing a property.

We’re here to guide you through the whole process, nothing is too big of an ask. Our focus is ensuring your property succeeds to its full potential, nothing will be overlooked or forgotten about.

It’s important to know the information about holiday let management before you make any decisions, for a more extensive explanation on how holiday let management works, read more here; A Guide to Holiday Let Management in South Wales. 

Our experienced property consultants are happy to help you with anything you need!

Let through Coast and Country Holidays…

Coast and Country is a part of Sykes Cottages, resulting in your property benefitting in millions of pounds of advertising. We’ll still be able to give you the personal support you need from our local team, making sure you’re looked after and reassuring you that your property is in the hands of people who care.

We offer a fully managed service for those who would like to have a hands-off approach and have some peace of mind that their property is looked after to our high standards. Relax, and enjoy the benefits of your investment, hassle-free.


Final thoughts

Whether you’re looking at investing in a holiday home in South Wales or considering the pros and cons of investing in South Wales, the pros outweigh the cons. If you’re willing to put thought and consideration into a strategic investment plan, you’ll find success in your investment.

With the perfect combination of high returns, a booming tourism sector, and affordable house prices, South Wales is an appealing area to invest in a holiday home.

For more information about buying a holiday let, have a look at our guide to buying a holiday let.