London short-term lets could face tourism levy

UK: London Mayor Sadiq Khan has renewed calls to introduce a tourism levy that would apply to overnight stays in the capital, including hotels and short-term lets such as Airbnb.

The proposal would give local authorities the power to charge visitors a small fee per night, with the funds going towards public services such as transport and street cleaning. Khan said the measure could generate an estimated £100 million a year for London boroughs.

Speaking to the Evening Standard, Khan said: “If you go to Paris, if you go to New York, if you go to Amsterdam, they all have a tourism levy. All I’m saying is, give us the power to have a tourism levy.”

The mayor has pushed for the change for several years and said it would bring London in line with other major global cities. Under the proposed scheme, boroughs could choose whether to introduce the charge and set their own rates.

Although exact details have not been confirmed, a flat fee of £1 to £2 per night has been suggested, which would apply to all types of overnight accommodation, including hotels and short-term rental platforms.

The move comes amid growing scrutiny of short-term lets across the UK, with councils calling for more tools to manage housing availability and visitor impact. The government is currently consulting on plans to introduce a mandatory register for short-term rentals in England.

Khan does not have the power to implement the levy without government approval, but has urged ministers to grant local authorities the necessary powers through legislation.