Buying a Holiday Let in North Wales: What to Check Before You Commit | SOLM Property
North Wales is one of the most popular holiday destinations in the UK, and it is easy to see the appeal of owning a holiday let here. Anglesey’s coast, the mountains of Eryri, the Menai Strait and the Dee Valley all pull in visitors year after year, and a well-run holiday property can be a genuine business rather than just a bolthole.
But the ground has shifted a lot in the last couple of years, particularly in Wales, and several changes catch buyers out. Before you commit to a holiday let in North Wales, here is what you actually need to check.
The tax rules changed in 2025
For a long time, holiday lets enjoyed a special tax status known as the Furnished Holiday Lettings regime, which treated them more like a business than a normal rental. That regime was abolished from April 2025.
In plain terms, a holiday let is now taxed much like any other rented property. Mortgage interest is no longer fully deductible and instead attracts relief only at the basic rate, you can no longer claim capital allowances on furniture and fittings, and the reduced 10% capital gains tax rate that used to apply when you sold is gone. If you are working out whether a holiday let stacks up, run the figures on the current rules, not on older assumptions or on what a seller’s projection from a few years ago suggests. This is worth a conversation with an accountant before you buy.
The 182-day rule is the big one in Wales
This is the single change that surprises buyers most, and it is specific to Wales. To be treated as a genuine commercial holiday let and pay business rates rather than council tax, a property in Wales must now be available to let for at least 252 days a year and actually let for at least 182 days in the same period. It also has to be run with a view to profit, so stays by friends and family at token rates do not count. The Valuation Office Agency assesses this.
From April 2026 the rule became a little more forgiving, letting owners average the 182 days over two or three years and count a small number of charity-donated nights, which helps in a quiet year. But 182 nights genuinely let is still a high bar, especially for a seasonal property, and plenty of owners do not reach it. The Welsh Government sets out the current rules for second homes and holiday lets.
What happens if it does not qualify
This is where it gets expensive. If a Welsh holiday let fails the 182-day test, it drops back to council tax, and in most of North Wales that means the second-home premium on top. Welsh councils can charge a premium of up to 300%, and several North Wales authorities currently charge somewhere between 100% and 150%. In practice that can mean paying two to two and a half times the standard council tax on a property you cannot let enough to keep on business rates.
Before you buy, find out the exact premium the relevant council charges, and be honest with yourself about whether the property can realistically hit 182 let nights a year. If it cannot, factor the council tax bill in as a real running cost, because it can turn a promising-looking investment into a loss-maker.
You may need planning permission to let it
Do not assume that because a property is a house, you can simply run it as a holiday let. Some Welsh councils have brought in planning controls to manage second homes and short-term lets. Gwynedd introduced an Article 4 Direction in September 2024, which means that in much of that council’s area you now need planning permission to change a property’s use to a second home or a short-term holiday let. Other areas may follow.
If the property you are looking at is not already established and consented as a holiday let, check the local planning position carefully before you commit, ideally before you are too far down the line.
Registration, licensing and the visitor levy
Wales is also bringing in new rules for visitor accommodation. From autumn 2026, anyone taking overnight holiday bookings in Wales must register their property with the Welsh Revenue Authority. Registration is free but it is a legal requirement, with penalties for not complying, so build it into your plans. You can read the Welsh Government’s registration guidance for the detail.
On top of that, a statutory licensing scheme for visitor accommodation is on the way, and councils will have the power to charge a visitor levy, a small per-night charge on guests, from April 2027 at the earliest. Not every council will introduce one, and they have to consult and give notice first, but it is worth knowing it may apply where your property is.
Get real proof of income
This is the most important practical check, and it is where we spend a lot of our time when we sell holiday lets in North Wales. Sellers naturally present their property in the best light, and a headline occupancy figure or an income projection is easy to quote and hard to rely on.
Ask for actual evidence: trading accounts, booking records and genuine occupancy figures over a couple of years, not a best-case estimate. Look at how the income is spread across the year, because North Wales is seasonal and a lot of the earnings land in summer and school holidays. Find out whether any forward bookings come with the sale. A property that can prove its income is worth far more, and far less risky, than one where you are asked to take the numbers on trust.
The costs people underestimate
Holiday lets earn more per night than a long-term rental, but they cost more to run, and the profit is what is left after all of it. Budget realistically for cleaning and changeovers between guests, management or agency fees if you are not doing it yourself, utility bills, which you pay rather than the guest, specialist holiday let insurance, ongoing maintenance, and the regular replacement of furnishings that short-stay use wears out quickly. Then allow for the quiet months when the property sits empty. Only once all of that is stripped out do you see the real return.
If it is a lodge or on a holiday park
Some of the most attractive-looking holiday units in North Wales are lodges or cabins on holiday parks, and these come with their own things to check. Look closely at the annual site fees, how long the site licence has left to run, and any condition that restricts the unit to holiday use only, which usually means you cannot live in it permanently. Check whether there are limits on how and when you can resell, and who to. These conditions can significantly affect both the running costs and the resale value, so read the paperwork before you fall for the view.
Buying costs in Wales
One last practical point. Wales does not charge stamp duty. It has its own Land Transaction Tax, and because a holiday let is an additional property, the higher rates apply. Factor that into your budget. Financing is different too, as a holiday let usually needs a specialist mortgage rather than a standard residential or buy-to-let product, often at a lower loan-to-value.
Thinking of buying or selling a holiday let in North Wales?
We sell holiday lets across North Wales, so we know this market, the rules that apply to it, and how to tell a genuinely strong holiday property from one that only looks the part on paper. Whether you are buying your first holiday let and want a straight assessment of whether the numbers work, or you own one and are thinking of selling, we can help you approach it with your eyes open.
If you would like to talk through a holiday let purchase or sale in North Wales, get in touch and we will give you an honest steer.
This article is general information, not tax, legal or financial advice. Holiday let rules in Wales are detailed and still changing, so check your specific situation with a qualified professional before committing.