Airbnb's in Bristol - Decreased by 3% in last 4 months
- At the end of 2024 there were 2,368 Airbnb lets in Bristol.
- By June 2025 this number had increased to 2,904 (+536 : +22.6%)
- By June 2026 this number had increased to 3,023 (+119 : +4.1%)
- By October 2026 this number has dropped to 2,932 (-91, -3%)
This is the first drop in Airbnb numbers since I started recording this data.
What has changed?
Tax treatment | Before April 2025 | November 2026 |
|---|---|---|
Mortgage interest | Fully deductible for qualifying holiday lets | Tax relief generally limited to the basic rate |
Furniture and equipment | Capital allowances available | Generally only replacement domestic items relief |
Capital Gains Tax | Special business reliefs potentially available | Generally taxed under ordinary property rules |
Pension contributions | Holiday-let profits counted as relevant earnings | No longer counted |
Income Tax | Normal income tax rates | Normal income tax rates, with higher property rates planned for 2027 |
These changes remove much of the tax advantage that holiday lets previously enjoyed over conventional residential rentals.
The increase in the number of Airbnb's had already slowed down in June 2026 (+4% from a year earlier), but the drop of 3% in the last 4 months show that the changes appear to be having a material impact. And this is before the higher taxes on property income are introduced in 2027.
Visitor Levy Bill
This Visitor Levy Bill, introduced in the House of Commons today [04/11/2026], marks the most significant step in making fiscal devolution a reality, giving mayors and leaders who know their areas best the ability to introduce a small fee on overnight stays. Money raised through the levy will stay in the local area, giving communities investment in the places and services used by visitors and residents.
Helen Godwin WECA Mayor has welcomed the new legislation:
Tens of millions of visitors spend billions of pounds in the West of England each year, brought here by amazing attractions like the Roman Baths, Clifton Suspension Bridge, Weston-super-Mare’s Grand Pier, and Bristol Zoo Project. And there’s much more on the way for our exciting region, particularly with the Aviva Arena opening in a few years’ time.
The overnight visitor levy will allow us to invest more money raised here right back into the West, like other places already do around the world. That could well mean transport and tourism improvements, helping communities to see and feel a difference from devolution.
So What?
The small reduction in Airbnb Lets does not mean there will be a drop in the number of visitors staying overnight in Bristol, but it could mean that some people who planned to have a trip to Bristol will have fewer accommodation options and could choose to visit for the day, or even stay away.
If WECA introduces the "Tourist Tax" and other tourist locations choose not to, then it make make Bristol less attractive as a tourist destination.
Once the expected 5% tax is introduced in Bristol we may see a further reduction in the number of Airbnb Lets in Bristol.
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