Welsh holiday lets gain multi-property rates averaging

Owners of self-catering holiday lets in Wales who fall short of the 182-night letting requirement can now average nights let across several properties in the same or nearby location, as well as across multiple yearsGOVGOV. The revised Welsh application guidance adds a multiple-property averaging route alongside the existing multi-year averageGOV, and restructures the eligibility page around the averaging options.

The core thresholds are unchanged. A Welsh property qualifies for business rates as self-catering accommodation only if it was available to let commercially for at least 252 nights in a 12-month period, was actually let commercially for at least 182 nights in the same period, and is intended to be available for at least 252 nights in the following 12 monthsGOV. A property that stops meeting the criteria may be moved from business rates to Council TaxGOV, and the Valuation Office assesses rateable value from the property's type, size, location, quality and likely letting incomeGOV.

Where the property was not let for at least 182 nights in the last 12 months, two averaging routes can bring it within the requirement. Owners of multiple self-catering holiday lets in the same location or very near each other can use the average number of nights let across those propertiesGOV. Separately, where the 12-month letting period being reported ends on or after 1 April 2026, the owner can use the average number of nights let over the previous 24 or 36 monthsGOV. The average must come to at least 182 nights let in each 12-month periodGOV. Owners using either averaging route explain the calculation in the 'further information or remarks' section of the form, completing one form for each eligible propertyGOV.

The revision also clarifies which nights count. Nights count only for stays of 28 nights or less on the letting sideGOV: where a stay lasts more than 28 nights, those nights do not count towards the nights the property must be letGOV, though they can count towards the nights it must be available to let where the property could have been booked for 28 nights or lessGOV. Nights the property was closed for repair or refurbishment, nights the site was closed, nights of private use including discounted lets to friends or family, and future bookings that have not happened yet all stay excluded. From 1 April 2026 owners can also include up to 14 nights a year where they donated the use of the property to a registered charityGOV; nights donated before 1 April 2026 cannot be includedGOV.

The completed form goes to selfcatering@voa.gov.uk with the subject heading 'Self-catering application — Wales', or by post to the Valuation Officer in Durham. After business rates start, owners receive a yearly form to confirm they still meet the criteria.

Legal basis: the Welsh self-catering business-rates application guidance as revised, read with the business-rates self-catering accommodation rules for Wales.