Edinburgh tourist tax to fund affordable homes
A tourist tax in Edinburgh will fund nearly 500 affordable homes, councillors in the Scottish capital have confirmed. The 5% levy on overnight stays in hotels, B&Bs, and self-catering accommodation will come into effect on 24th July 2026 and expects to raise around £50 million.
The £5 million Housing Tourism Mitigation fund aims to fund the building of 472 homes between 2026/27 and 2028/29. It was approved by councillors on the housing, homelessness, and fair work committee, and has since been officially confirmed as part of the council’s budget.
Plans include three new-build developments at Fountainbridge, Meadowbank, and Coatfield Lane in Leith. Around 360 of thee homes will be social-rented and around 110 are earmarked as mid-market rent homes.
Revenue from a tourism tax will also go towards improving the infrastructure of Edinburgh and supporting it’s arts, according to the city council. A funding of over £90 million over thee next three years “to sustain and enhance Edinburgh’s reputation as one of the most beautiful and enjoyable destinations in the world,” has also been agreed on by the council.
“We’re rightly proud to be the first local authority in the UK to push ahead with a city-wide visitor levy scheme, and I can’t stress enough just how big an opportunity this is for our city, our residents and our visitors,” Council leader Jane Meagher said. “These spend programmes will help us not only to sustain and enhance the things that make our city so special, but also to better manage the effects of tourism and major events on those who live here all year round.”
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