Airbnb Rules in Cardiff

Cardiff is not a "list it and forget it" market. You have Welsh-specific tax thresholds, Rent Smart Wales licensing, a local 90-night planning trigger, and a national Welsh holiday-let licence coming in.

Welsh law: what actually applies

Renting Homes (Wales) Act 2016: This overhauled tenancies into "occupation contracts" for long-term renters, but does not apply to genuine holiday lets. Holiday guests are not "contract-holders" under the Act.

Housing (Wales) Act 2014 / Rent Smart Wales:

All landlords with property in Cardiff must register with Rent Smart Wales.

If you self-manage, you also need a Rent Smart Wales licence (training + Code of Practice).

This applies to short-term lets too, not just ASTs.

Welsh tax thresholds for holiday lets (from April 2023 and still in force in 2025-26):

To qualify for business rates instead of council tax, a Welsh holiday let must:

Be available for at least 252 days a year, and

Be actually let for at least 182 days a year on a commercial basis.

If you miss those, you stay in council tax and may face a second-home premium.

This combination is why Cardiff is tighter than an equivalent English city with similar demand.

Cardiff council tax premiums and business rates

Welsh Government allows councils to charge up to 300% council tax premium on second homes and some holiday lets that do not meet the 182 / 252 thresholds.

For Cardiff specifically:

Cardiff can charge a premium under the Welsh rules.

If your Cardiff property is a second home or under-used holiday let and does not hit 182/252, you should assume a higher council tax bill than a normal main residence, and check the live premium percentage before you buy or change use.

Holiday-let loophole point:

If your property is set up as a holiday let but misses 182/252, you:

Pay council tax instead of business rates, and

Are exposed to any council tax premium Cardiff has set for second homes.

Planning approach and enforcement

Planning in Wales now treats short-lets more explicitly:

Welsh Government introduced a new C6 planning use class for short-term lets and a framework for primary homes, secondary homes and STLs.

Cardiff sources summarise the local rule of thumb as:

Main home, rented less than 90 nights per year: usually no planning permission required.

Main home or second home rented as a short-term let for more than 90 nights per year, especially as a whole-home, is likely to need planning permission for a change of use (to C6 / visitor accommodation).

Enforcement:

Cardiff treats frequent whole-home short-lets as a change from C3 residential to visitor accommodation, which it can refuse if it harms housing supply or amenity.

Cardiff is relatively strict on enforcement compared to some English cities: host guides note that failure to get planning when over 90 nights "can result in enforcement actions and penalties".

Current and coming licensing for Welsh holiday lets

There are two separate licensing pieces in Wales:

Rent Smart Wales (already live):

All landlords, including holiday-let hosts, must register.

Self-managers must be licensed and pass training.

New Wales-wide holiday-let licence (coming in):

Welsh Government's November 2025 announcement says:

Providers of self-contained, self-catering accommodation (holiday cottages and flats) will need a specific visitor accommodation licence.

They must meet a "fitness for visitor accommodation" standard: gas and electrical safety certificates, insurance, smoke and CO alarms, etc.

A 2026 government update says registration will be a legal requirement from 1 October 2026 for anyone taking overnight bookings in Wales.

For your April 2026 page:

It is accurate to say:

A national Welsh holiday-let licensing scheme has been legislated but is not yet in force.

From autumn 2026, Cardiff STR owners should assume they must:

Obtain a Welsh holiday-let licence.

Meet the "fitness for visitor accommodation" standard on top of Rent Smart Wales.

ADR, occupancy and revenue in Cardiff

Cardiff is heavily event-driven:

Rugby and football at Principality Stadium and Cardiff City Stadium.

Concerts and events at Principality, Cardiff Castle, and arenas.

Weekend city-break trade and business travel.

By area:

City centre / stadium area:

ADR: GBP 120-200 per night for good flats, depending on spec and proximity.

Occupancy: 60-75% for well-run listings that price correctly around fixtures.

Cardiff Bay:

ADR: GBP 100-170 per night for one- and two-beds.

Occupancy similar but slightly more weekend-heavy.

Worked annual gross examples:

City-centre one-bed, solid operator: ADR GBP 140, occupancy 68%. Gross = 140 x 0.68 x 365 = GBP 34,832.

Cardiff Bay two-bed, good events calendar: ADR GBP 160, occupancy 70%. Gross = 160 x 0.70 x 365 = GBP 40,880.

More modest flat away from core, lighter events focus: ADR GBP 110, occupancy 55%. Gross = 110 x 0.55 x 365 = GBP 22,083.

All before: 15-20% platform fees, 12-20% + VAT for any management company, cleaning, linen, utilities, maintenance and Welsh income tax.

The key Welsh twist is that if you actually hit 182 days let and 252 days available to get business rates, your occupancy needs to be at the top of that range.

Welsh Government policy on short-lets

The Welsh Government has taken a much tougher line on short-lets than Westminster:

Introduced three use classes for: primary homes, secondary homes, and short-term lets.

Changed the business-rates test to 182/252, making it much harder to get out of council tax.

Allowed councils to set up to 300% council tax premiums on second homes and some holiday lets.

Is bringing in a national holiday-let licensing scheme with a "fitness for visitor accommodation" standard.

Has been explicit that the aim is to curb the impact of second homes and short-lets on Welsh communities and make sure STR owners "make a fair contribution" through tax and higher standards.

In other words, Cardiff is operating within a nationally hostile policy environment for casual STRs.

What Cardiff hosts get wrong

Assuming Renting Homes (Wales) Act covers them like ASTs. It does not. Holiday lets sit outside Renting Homes, but inside Rent Smart Wales and the holiday-let licensing regime, so you need to look at different statutes.

Ignoring Rent Smart Wales because "it's only Airbnb". Under the Housing (Wales) Act 2014, all landlords, including those offering short-term lets, must register with Rent Smart Wales and be licensed if self-managing.

Thinking there is no planning risk below London's 90 nights. Cardiff is explicit: planning permission is likely required if you rent a property as a short-term let for more than 90 nights per year, especially if it is a second home or entire property.

Misunderstanding the 182/252 business-rates test. In Wales, the threshold is much higher than England's 70/140. If you do not hit 182 days let and 252 days available, you stay in council tax and may face a premium as a second home.

Assuming Cardiff's council tax premium is zero or trivial. Welsh rules allow up to 300% premium. Even if Cardiff has chosen a lower number today, future hikes are on the table and you should model the impact, not assume "standard band D".

Thinking the new Welsh holiday-let licence is hypothetical. The Bill and GOV.WALES announcement are clear: self-contained holiday lets will need a licence and must meet a fitness for visitor accommodation standard. This is not a blog rumour; it is government policy with a 2026 start date signal.

Basing numbers on event weekends and ignoring empty Tuesdays. Cardiff can feel "full" on Six Nations weekends and concert nights. Annual occupancy data and realistic assumptions point more to 55-70% for good listings, not permanent sell-outs.

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