With the rise in domestic tourism and platforms like Airbnb transforming the holiday accommodation landscape, converting properties into holiday lets has become an increasingly popular investment in South Wales.
However, before diving in, it’s crucial to understand the planning permission rules that may apply.
What is a Holiday Let?
A holiday let is a property rented out for short periods to tourists or holidaymakers, typically furnished and available for bookings ranging from a single night to a few weeks. Unlike traditional rentals, holiday lets are treated differently in the eyes of the law and local councils.
For a comprehensive overview of the regulations governing holiday lets in Wales, including planning permissions, safety standards, and tax implications, refer to A Comprehensive Guide to Holiday Let Regulations in Wales.
Do You Need Planning Permission?
The need for planning permission largely depends on how you intend to use the property and how often it will be let.
1. Change of Use
If you’re converting a residential property into a holiday let, you may need planning permission due to a change of use. In Wales, the classification of a residential dwelling (C3 use class) may need to be changed to another use class if the property is let on a short-term basis frequently enough to be considered a business.
This is a case-by-case decision based on factors such as:
- The number of days the property is let per year
- The level of turnover or guest traffic
- Impact on neighbours (noise, parking, waste, etc.)
- Whether the property is your primary residence
For insights into the investment potential and considerations when purchasing a holiday let in South Wales, check out Are Holiday Lets in South Wales a Good Investment?.
2. New Planning Rules in Wales (from 2022)
In 2022, the Welsh Government introduced new powers for local authorities to control short-term lets
There are now three new use classes:
- C3: Main home
- C5: Second homes
- C6: Short-term holiday lets
Local councils can implement Article 4 Directions to require planning permission when a property changes from C3 to C5 or C6. While not every council has adopted these yet, it’s increasingly common in high-tourism areas like Pembrokeshire, Swansea, and the Brecon Beacons. The introduction of these use classes means that converting a primary residence to a short-term holiday accommodation may now require planning permission, depending on local authority policies.
For a detailed explanation of these changes and their implications, refer to A Comprehensive Guide to Holiday Let Regulations in Wales.
3. Licensing and Council Tax Implications
While not strictly part of planning permission, you should also be aware of:
- Business Rates vs. Council Tax: In Wales, the “182-day rule” refers to criteria for classifying a self-catering property as a business for non-domestic rates. To qualify for business rates, you must make your property available for let for at least 252 days in a year and actually be let for at least 182 days. If a property doesn’t meet these thresholds, it’s liable for council tax instead.
- Licensing Requirements: Some local councils may require extra licences or registrations for short-term holiday lets, particularly if you manage multiple properties. As of May 2025, there’s no national registration scheme in place, but the Welsh Government plans to introduce one soon. The new scheme will aim to improve safety, quality, and oversight of visitor accommodation. It will also help councils manage tourism’s impact on housing and local communities. Property owners should stay updated, as registration could soon become a legal requirement.
For an in-depth look at the tax implications and recent changes affecting holiday lets in Wales, consult the Complete Guide to Holiday Let Tax in Wales.
How to Apply for Planning Permission
If you’re unsure whether permission is needed, speak to the planning department of your local authority (e.g., Swansea Council, Cardiff Council, or Pembrokeshire County Council). If permission is required, you’ll need to:
- Submit a planning application through the Planning Portal or local authority website.
- Include details about the intended use, expected occupancy, and any alterations to the property.
- Wait for a formal decision (usually within 8 weeks).
For guidance on purchasing a holiday let and understanding the associated legal considerations, see A Guide to Buying a Holiday Let in South Wales.
Tips for a Smooth Process
- Do your research early: Understand local policies before buying or converting a property.
- Speak with a planning consultant: This is especially helpful if your case is complex or in a conservation area.
- Engage with the community: Address concerns about noise, parking, or anti-social behaviour upfront.
For strategies on running a successful holiday let business, including marketing tips and enhancing guest experiences, refer to A Guide to Running a Successful Holiday Let Business in South Wales.
Final Thoughts
Holiday lets can be a lucrative investment in South Wales, but the regulatory landscape is changing. Planning permission is not always required, but in many areas, it’s becoming harder to bypass. Ensure you check the rules for your specific local authority and prepare for the potential need for permission—especially as Wales continues to tighten controls on short-term lets.
For a comprehensive understanding of the rules and regulations, including health and safety requirements, visit Our Ultimate Guide: Rules and Regulations in Holiday Lets.
Please Note: The information contained in this article was accurate at the time of writing, based on our research. Rules, criteria and regulations change all the time, so please contact our prospective new owner team if you’d like to hear how. Nothing in this article constitutes the giving of financial, tax or legal advice to you; please consult your own professional advisor (accountant, lawyer etc). in this regard. If we have referred within the article to a third-party provider of unregulated holiday let mortgages, this is due to the fact that such mortgages aren’t currently regulated by the FCA.
As a helpful reminder, your home may be repossessed if you do not keep up repayments on a mortgage, so again anything you decide to do in this particular area this is one on which you should take your own professional advice on too, as we aren’t providing and can’t provide you with this.
As a holiday letting owner you are responsible for compliance with health & safety laws, regulations and guidance, and for having suitable insurances in place (not Sykes Holiday Cottages or its brands). From time to time, Sykes shares information with you on the topic of health and safety and insurance. When it does so, it is not providing you with advice (legal, financial, tax or otherwise); please seek your own as you see fit. In addition, it is not making any representations or warranties about the information being complete or free from errors or inaccuracies. Sykes shall not be liable for any loss or damage arising under or in connection with your reliance on it.
