New Overnight Stay Levy Announced for England What Short Let Landlords Need to Know

The UK Government has confirmed that mayors and local authorities in England will be given new powers to introduce a levy on overnight stays. This would apply to accommodation such as hotels, guest houses, serviced apartments, holiday lets and short lets.

The policy was announced on 25 November 2025 and is now entering a twelve-week consultation period. This means no levy has been set, no amounts have been confirmed and no start date has been announced.

What Has Been Confirmed

• Local leaders will be allowed to introduce a visitor levy in their area
• The levy would apply to all paid accommodation including short lets and holiday lets
• Revenue raised would be used for local investment such as transport and community improvements
• A nationwide rate will not be imposed. Each area will decide if it wishes to introduce the levy and what the amount should be
• A formal consultation will run for twelve weeks to determine the final framework

What Has Not Been Confirmed

• The amount guests will pay per night
• Whether it will be a flat fee or percentage
• When the levy will start
• How collection and reporting will work
• Whether any exemptions will apply
• These details will only be decided after the consultation

Why This Matters for Short Lets and Holiday Lets

If your area chooses to introduce a levy, the cost will apply to guests staying in short lets, holiday lets and serviced apartments. This may affect pricing and booking terms. Landlords and operators may need to update guest communications once final guidance is published.

What Landlords Should Do Now

• Monitor announcements from your local council or mayoral office
• Review pricing in case adjustments are required later
• Prepare to update booking confirmations and terms once final rules are released
• Keep an eye on the outcome of the twelve week consultation

Summary

This is a new policy, not a reminder. It does not introduce an immediate tax but gives local authorities the power to create one in future. Nothing is changing yet, but short let and holiday let operators should stay informed as details become clearer.