Petition title: Give neighbours their say when holiday let owners start applying for licences

Text of petition:

There are thousands of holiday lets in Wales. This means that many of us have suddenly found ourselves living near businesses instead of homes, and we’ve had no say in the matter.

The holiday let licensing scheme in Scotland allows neighbours to respond to licence applications: the neighbours’ responses may then be considered as potential grounds for refusing an application.

We want Welsh Government to include neighbour consultation in Wales’ holiday let licensing scheme too.

Additional information:

As well as holiday let providers being able to demonstrate compliance with safety and quality requirements, we believe the licensing scheme in Wales should also address the issues faced by neighbours.

Legislation for a holiday let licensing scheme in Wales is expected to be introduced to the Senedd before the end of 2024, and we want Welsh Government to adopt The Scottish Government’s licensing scheme where:

1. neighbours are notified of new licence applications/renewals;
2. neighbours are allowed to raise objections/concerns in response to a licence application;
3. neighbour objections are considered as potential grounds for refusing a licence application.

1. Background

The Welsh Government’s Programme for Government and the Co-operation Agreement with Plaid Cymru both included a commitment to introduce a statutory licensing scheme for holiday lets in Wales. Despite the ending of the Co-operation Agreement, the Welsh Government still intends to take this forward.

2. Licensing of short-term lets in Scotland

The Scottish Parliament approved the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 (“the Licensing Order”) in January 2022. This required all Scottish local authorities to introduce a licensing system for short-term lets within their area by 1 October 2022.

The policy note which accompanies the Licensing Order states:

The Scottish Government’s purpose in the regulation of short-term lets is to ensure that local authorities have appropriate regulatory powers to balance the needs and concerns of their communities with wider economic and tourism interests.

The Licensing Order establishes a licensing scheme to ensure short-term lets are safe and address issues faced by neighbours; and to facilitate local authorities in knowing and understanding what is happening in their area as well as to assist with handling complaints effectively.

Guidance produced by the Scottish Government sets out that applicants have responsibility for giving notice of an application for a new, or renewal of a, short-term lets licence. Applicants are required to display a site notice for 21 days at or near the premises so that it can be conveniently read by the public. The site notice must set out that an application has been made for a licence, the main facts of the application, and explain how objections and representations in relation to the application may be made to the licensing authority.

3. Welsh Government action

The Welsh Government’s proposal is to introduce new legislation to make it a requirement for visitor accommodation providers to obtain a licence to operate, which it suggests would help raise standards across the industry, ensure visitor safety and provide a level playing field for all operators.

The Welsh Government launched a public consultation on the proposals in December 2022, seeking views on the different ways that a licensing scheme might operate. The consultation document did not include any reference to allowing members of the public to raise objections as part of the licence application process.

The Welsh Government’s response to the petition highlights that local authorities have the power to “introduce what is known as an Article 4 Direction to manage the use of housing as second homes and holiday lets, where they are concerned about the impact on their communities”. The response states further:

Local authorities are best placed to assess the local impact of new holiday lets in residential properties and consider what steps are needed to protect the interests of their communities. As a result, we are not proposing to include community or resident consultation as part of a national licensing process. Local authorities already have powers to introduce planning controls to deal with these issues, particularly where there is significant local concern.

In September 2024, Gwynedd Council became the first local planning authority in Wales to implement an Article 4 Direction, which requires property owners to obtain planning permission before changing the use of a main residence into a second home or holiday accommodation.

The Eryri National Park Authority has also served notice that it is proposing to make a similar Article 4 Direction, which would come into effect on 1 June 2025.

Regarding the timing of the proposed legislation on the licensing of visitor accommodation providers, the Cabinet Secretary for Finance and Welsh Language stated in December 2024, “we are working on the basis that it will be a Bill introduced in 2025”.

Every effort is made to ensure that the information contained in this briefing is correct at the time of publication. Readers should be aware that these briefings are not necessarily updated or otherwise amended to reflect subsequent changes.