Visitor Levy Bill Introduced to Parliament, Giving Mayors Overnight Stay Fee Powers

Editor's note: This brief was summarised by The Property AI Team from a report by Gov.UK Housing. Read the original article for full details.

Visitor Levy Bill Introduced to Parliament, Giving Mayors Overnight Stay Fee Powers

The Visitor Levy Bill has been introduced in the House of Commons, giving mayors and local leaders the ability to introduce a small fee on overnight stays. Money raised through the levy will stay in the local area, funding investment in the places and services used by visitors and residents.

The legislation, introduced on 4 November 2026 by the Ministry of Housing, Communities and Local Government, marks what the government describes as the most significant step in making fiscal devolution a reality. Mayors who choose to introduce a levy will be able to invest in better high streets, public spaces — including public toilets and parks — cultural events, security and destination promotion.

Percentage Rate Protects Lower-Cost Stays

The government will require the levy to be charged as a percentage rate of the cost of accommodation, rather than as a flat fee. This means those choosing cheaper accommodation will pay less, protecting lower-cost family breaks. Ten mayors have also committed that any levy introduced in their areas would be no higher than 5%, providing certainty for visitors and businesses while preserving local choice.

What This Means for Letting Agents and Inventory Clerks

For letting agents operating in areas where a levy is introduced, the change could affect short-term and overnight accommodation bookings. The government states that money raised from visitors will stay in the area, helping attract more visitors, support local businesses and improve places for residents. The Bill builds on commitments made at the Budget, including the government's high streets strategy and wider plans to shift power from Whitehall back to local communities.

Secretary of State for Housing, Communities, and Local Government Angela Rayner said that millions of people visit towns and cities each year and that communities should feel the benefit of that footfall, with every pound raised staying in the local area. Bev Craig, Mayor of Greater Manchester, said the region had campaigned for an Overnight Visitor Levy and that Manchester's industry-led City Visitor Charge had shown the model can work, generating millions of pounds invested back into street cleaning and attracting major events, with widespread support from the hospitality sector.