As part of the Budget 2025, the Government confirmed its intention to give Mayoral Strategic Authorities in England the power to introduce a local overnight visitor levy. In simple terms, this would allow certain regions to charge guests a fee for staying overnight, something already seen in many international destinations.
This is not an entirely new concept within the UK. Similar schemes have already been introduced in Wales and Scotland, and the extension into England signals a broader shift in how local tourism infrastructure may be funded.
Why this matters
For property owners, particularly those operating short-term lets, holiday accommodation, or Airbnb-style rentals, this is a development worth watching closely. If implemented, a visitor levy could:
- Increase the overall cost to guests, potentially affecting demand
- Add an administrative layer for hosts responsible for collecting and remitting the levy
- Create regional differences in pricing competitiveness depending on where levies are introduced
While hotels have traditionally borne the brunt of these types of charges internationally, the Government is clearly considering a wider application across different accommodation types.
What was being consulted on
A formal consultation was launched on 26 November to gather views on how these powers should be designed and implemented. The key areas under consideration included:
- whether Foundation Strategic Authorities should also have the power to create overnight visitor levies;
- how any revenues collected should be used;
- the types of accommodation that will and will not be included;
- how levy rates should be calculated and the powers Strategic Authorities have to change them;
- what Strategic Authorities need to do to introduce a levy and to change it;
- liability for the levy and how this will be assessed;
- the administrative framework for overnight visitor levies, including options to minimise regulatory requirements;
- equalities impacts.
The consultation closed on 18 February 2026, and we now await the Government’s response. This will be a key moment in determining how widely these powers are rolled out and how they will operate in practice.
Practical considerations for landlords and hosts
Although nothing has been finalised yet, it would be prudent for property owners to start thinking about the potential implications:
- Pricing strategy – Would you absorb the cost or pass it on to guests?
- Systems and processes – Are your booking and accounting systems capable of handling an additional charge?
- Platform impact – If you rely on platforms like Airbnb, will they administer the levy on your behalf, or will the responsibility sit with you?
- Location strategy – Over time, differing regional levies could influence where investors choose to acquire or operate short-term lets
Our view
There is a risk that, unless carefully designed, this becomes another administrative burden for smaller landlords and short-term let operators. The details around who is responsible for collection and reporting will be particularly important. If the obligation falls on individual hosts rather than platforms, compliance could become unnecessarily complex.
On the other hand, if revenues are genuinely reinvested into local tourism and infrastructure, there may be longer-term benefits for high-demand areas.
We will update you once the Government publishes its response and provides clarity on the next steps. If you operate short-term lets and would like to discuss how this could affect your business, feel free to get in touch.
April 3rd, 2026
