Short let landlords have been included in government plans to introduce a visitor levy in England.

Its Visitor Levy Bill, introduced in the House of Commons, will give mayors and local leaders the ability to introduce a small fee on overnight stays, with money raised being spent in the area.

The levy will apply to short-term, commercially let overnight accommodation, including short term lets, for the first 28 consecutive days of a stay. Occasional hosts, such as people who only rent out a spare room from time to time, will only pay the levy if they earn above a set amount. Student accommodation, care homes, children’s homes, and school boarding houses will be exempt along with temporary accommodation, shelters and refuges.

Mayors and local leaders will also be able to set additional limited local exemptions, such as for camping pitches.  

Responsible

Accommodation providers will be responsible for accounting for and paying the levy and the government will produce guidance on how to register, pay and report. Local leaders will be able to enforce the rules using powers modelled on those applying to national self-assessed taxes.

The levy will be charged as a percentage rate of the cost of accommodation, rather than as a flat fee, meaning those choosing cheaper accommodation will pay less, says the government. Ten mayors have also committed that any levy introduced in their areas would be no higher than 5%.

Mayor of Greater Manchester Bev Craig says its pioneering similar scheme has been a resounding success. A £1 per room per night charge through the Business Improvement District introduced in 2023 raised £2.8 million in its first year, which helped to increase street cleaning across the city.

Model

“Our industry-led City Visitor Charge has shown that the model can work, generating millions of pounds that has been invested back into things like street cleaning and our work to attract major events, with widespread support from the hospitality sector,” says Craig.  

Those wanting to introduce a levy will first need to publish a plan and consult local people and businesses before taking a final decision.

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