The Welsh government is initiating a review of the criteria used to determine whether holiday homes qualify for business rates rather than council tax. Currently, property owners must prove their holiday lets are occupied for at least 182 days per year to be eligible for business rates, a policy intended to ensure that short-term rentals contribute fairly to local economies and to manage the housing market.

However, the policy has faced significant criticism from property owners and industry groups who argue that the threshold is difficult to meet and places an undue financial burden on small-scale operators. In response to this backlash, government officials have signaled a willingness to re-examine the "modest" cut to the threshold and its broader economic consequences. While the government maintains that the goal of the policy is to address housing shortages in popular tourist areas, the upcoming review suggests a potential shift in how these regulations are applied. There is currently no definitive timeline for when the review will conclude or what specific changes, if any, will be implemented as a result of the feedback received.