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Holiday boss says tax change will close lets

Document Cited in Related
Vincent
Published date24 April 2024
Publication titleDaily Post - North Wales Edition (Wales)
In Wales rules have already been tightened on holiday lets - with Welsh Government increasing the number of days a property has to be rented out for it to qualify for business rates rather than paying a council tax premium

On top of this UK Government also announced it was scrapping a tax break in a move that will cost the sector £300million-a-year. According to Ed Maughan, managing director of GroupAccommodation.com, which has hundreds of properties in Wales, the implications of scrapping the FHL scheme will affect holidaymakers, and local economies.

At present, the Professional Association of Self-Caters UK (PASC), is lobbying hard in an attempt to stop this from happening, over claims about the negative implications it will have on rental owners, and subsequently holidaymakers, across the UK.

Ed said: "These broad-stroke changes hurt the thousands of professional, well-run businesses that operate nationwide to provide high-quality holiday rentals. The same rentals that bring millions of tourists to our towns, cities and countryside areas to explore and spend money at local businesses."

He claimed the recent change in the FHL scheme could see hundreds, if not thousands, of holiday property owners having to reevaluate their financial earnings to see whether they can afford to manage their properties. Ed believes that this will inevitably lead to holiday-let landlords having to leave the industry.

The good news is this could free up homes for local people but Ed says it will mean much less choice for future getaways, as the pool of rental properties narrows.

He added: "With less choice of holiday rental properties, but no significant reduction in the level of demand for these staycations, this will leave Brits competing for these stays and having to therefore fork out a lot more for their getaways. In light of the cost of living crisis, this will place those with more disposable income at a significant advantage."

He said: "The change in legislation will unfortunately lead to a rise in...

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