Edinburgh tourist tax to help tackle city's housing emergency

Tourists will pay a 5% levy on overnight stays in Edinburgh

Money raised from Edinburgh's tourist tax will be used to tackle the city's housing emergency by building nearly 500 affordable homes, councillors have confirmed.

The visitor levy of 5% on overnight stays in hotels, bed and breakfasts and self-catering accommodation will take effect from 24 July 2026. About £90m is expected to be raised in the first three years of the scheme.

A £5m funding pot to build 472 homes between 2026/27 and 2028/29 was previously approved by councillors on the housing, homelessness and fair work committee.

It has now been officially rubber-stamped as part of the council's budget.

Tourist tax revenue will also be spent on improving infrastructure and supporting the arts, the city council said.

The £5m Housing Tourism Mitigation Fund plans include three new-build developments at Fountainbridge, Meadowbank and Coatfield Lane in Leith.

About 360 of the homes would be social-rented and about 110 would be mid-market rent homes.