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14/7/25 8:13 pm
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Landlords who operate short term let properties of any kind are to pay a new ‘visitor levy’ after the Chancellor revealed plans to roll out the tax across England.
Already introduced in Edinburgh where a 5% charge on overnight accommodation is to kick off from July 2026 onwards while Wales also has plans, Rachel Reeves has announced a consultation on new measures in England that will give its mayors of ‘strategic authorities’ the power to bring in similar schemes.
These are the new councils that replace multiple district councils in an area or region into one large ‘super council’, one recent example being the Devon and Torbay Combined County Authority created in February.
Alison McGovern, Minister for Local Government and Homelessness (pictured), says: “Local levies on overnight stays are common around the world – giving local leaders the ability to introduce a visitor levy in their area will give them a choice to join with their international counterparts in regional and national cities including Milan, Prague, New York, Paris, and in other parts of the UK.”
But her announcement document tries to achieve two opposing aims, hoping that the new levy will give mayors more power and cash to invest in local economies, but also increase visitor numbers – which is hard to see given it will become more expensive to book an Airbnb, for example, if a visitor levy is introduced.
The levy will also have a political aim – to placate those who think ‘over tourism’ is ruining many areas of the English coastline and countryside.
All visitor accommodation will be included. This will cover ‘commercial let short-term accommodation’ including hotels, guesthouses, shepherd huts, boats, bed and breakfasts, hostels, campsites, self-catering properties, and short-term lets.
However, those staying in short accommodation while their home is renovated, for example, would not be included.
The consultation will run for 12 weeks from now until 18th February 2026.
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