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Mark Drakeford set out plans to bring in licensing for short-term, Airbnb-style lets and create greater parity with the long-term rental market.

The former First Minister introduced a bill to create a mandatory licensing scheme for visitor accommodation – starting with self-contained, self-catering properties.

He explained the tourism bill aims to give visitors confidence that accommodation meets a legal “fitness” standard, bringing Wales in line with Scotland and other parts of the UK.

If ultimately passed by the Senedd, the bill will require owners of self-catering properties to have gas, electrical and fire safety certificates as well as public liability insurance, smoke and carbon monoxide alarms.

The new rules would initially apply to self-contained, self-catering accommodation – including listings on online platforms Airbnb and Booking.com – but could be expanded in future. The initial phase does not include spare rooms, hotels, B&Bs nor hostels.

In July, the Senedd passed separate legislation to create a register of visitor accommodation providers and give councils powers to introduce a £1.30-a-night tourism tax.

‘Light touch’

Prof Drakeford, Wales’ finance secretary, told the Senedd the second bill would create a more consistent approach, levelling the playing field for short and long-term letting.

In the statement on Tuesday November 4, he said: “As it stands, if an individual chooses to let a property to a long-term tenant, that person must register as a landlord, obtain a licence themselves or through an appointed agent and ensure statutory obligations are being met.

“Should the same individual choose to let out a property to visitors on a short-term basis, it can simply be listed on an online platform and bookings can immediately start to be taken.”

Documents published alongside the bill estimated the annual licence fee cost at £75 per premises, with a one-off training for providers of around £25. According to a report, more than 21,000 properties in Wales were listed on Airbnb alone in May 2022

The total cost of the scheme was estimated at £41m, including a one-off £9m for the Welsh Government to manage roll out and £32m in compliance costs for providers over ten years.

While the Welsh Government aims to take a “proportionate, light-touch” approach to enforcement, providers could be fined for persistent or repeated breaches.

‘Cautiously welcomed’

The bill would create new offences including operating without a licence, failure to provide information, providing false information and non-compliance with advertising rules.

Conservative Samuel Kurtz cautiously welcomed the bill but raised concerns about wide-ranging enforcement powers, including to enter premises and seize documents.

Under the bill, it would become an offence to advertise or market visitor accommodation without including the required registration number.

Mr Kurtz warned booking platforms could be held legally liable if a host inputs an incorrect registration number, “information entirely out of the booking platform’s control”.

He called for a distinction between large-scale commercial operators exploiting a loophole and smaller operators simply sharing their homes or one other property to make ends meet.

The shadow economy secretary also warned of the cumulative impact of reforms. “We must be careful not to impose further burdens that drive those small operators, those legitimate businesses, out of the sector entirely,” he said.

‘Honest mistakes’

Prof Drakeford argued it is reasonable to expect booking platforms to take responsibility for publishing accurate information, given it can be checked against a public register. He said the bill allows people to put details right once brought to a provider’s attention.

The former First Minister stressed: “It isn’t the purpose of the bill to pursue people who’ve made honest mistakes and are relying on the information provided by others.”

The tourism bill is the final piece in the programme of work agreed under the Welsh Government’s now-collapsed cooperation deal with Plaid Cymru.

Siân Gwenllian, Plaid Cymru’s shadow housing secretary, warned the bill currently fails to strike the right balance between the interests of visitors and local people.

She called for neighbours to have a voice in the process of agreeing a licence – or removing one due to complaints about noise, parking or anti-social behaviour.

Raising plans for a similar scheme in England, Prof Drakeford agreed with Labour colleague Lesley Griffiths that Wales must not be left as the only part of the UK without safeguards.