More than a quarter of holiday let businesses in Wales have ceased trading over the past year, following the introduction of the 182-day letting threshold, according to new data from the Valuation Office Agency. In Pembrokeshire alone, 35% of holiday lets have disappeared over the past two years.

The figures reveal a staggering 26% drop in Welsh short-term lets between 2024 and 2025. While several policy interventions have affected the holiday let sector in recent years, the data make it clear that the 182-day letting requirement introduced in Wales has played a decisive role in this decline.

Between 2023 and 2025, England saw a 9% reduction in holiday lets, while Wales experienced a far steeper decline of 29%, highlighting the disproportionate impact the threshold has had on Welsh operators.

The regional impact is particularly stark. In Pembrokeshire, 35% of holiday lets (903) have disappeared over the past two years, while Carmarthenshire has lost over a third of its holiday lets in the last year alone.

These losses not only reduce visitor numbers but also have knock-on effects for local shops, restaurants, attractions, and service providers that rely on holidaymakers, threatening livelihoods across the region.

The decline of self-catering properties has a broader impact on Welsh communities, as many local residents and businesses rely on the work provided by the sector, with closures directly leading to lost jobs and reduced income for local trades, cleaners, and small businesses that depend on visitor spending.

Professional Association of Self-Caterers (PASC UK) Wales policy lead Nicky Williamson said:“For years now, we’ve warned that this policy would have severe consequences for the self-catering sector. The latest figures confirm those concerns. Industry operators have consistently argued that the 182-day threshold is unrealistically high, with many small self-catering businesses stating that it is unachievable in the current tourism market.

“These pressures come on top of wider challenges facing the sector, creating a cumulative impact that is leading to declining visitor capacity and, in some cases, properties standing empty.

“The loss of self-catering accommodation represents a serious risk to the wider Welsh tourism economy, as many local businesses rely on visitors staying in these properties. Self-catering operators provide essential bedstock that supports tourism across Wales, often in areas underserved by hotels.

“The 182-day rule threatens that capacity, risks employment provided by these businesses and has already had a damaging effect on the sector, including reducing vital job opportunities and income streams that sustain local communities and the wider tourism supply chain.

“Fewer visitors staying in self-catering properties means reduced footfall for local cafes, shops, attractions, and service providers, directly hitting jobs and incomes in communities already reliant on tourism

“With the upcoming Senedd elections, we hope the political parties will reflect on this data and other evidence we’ve shared and commit to reduce 182.”

The VOA figures reinforce what PASC UK has argued for several years: the 182-day threshold is too high and risks forcing many micro-businesses out of the market, harming the wider Welsh tourism industry.