Council tax, the Clean Air Zone and costs for Birmingham short lets

As of September 2026, if your Birmingham short let is not anyone's main home and stays on council tax, you pay double. Birmingham City Council has charged a 100% second home premium since 1 April 2025. A busy short let can move to business rates instead, and one more Birmingham cost affects your guests: the Clean Air Zone.

What is the second home premium?

The council says that from 1 April 2025, owners of second homes in Birmingham pay a 100% council tax premium, which means double the standard council tax. A second home is a substantially furnished property with no permanent resident, even if someone stays there occasionally. The council lists nine exceptions to the premium.

When do business rates apply instead?

A holiday let can be assessed for business rates instead of council tax. GOV.UK explains that in England, a property is rated for business rates if it is available to let for 140 days or more in the year and actually let for 70 days or more. The Valuation Office Agency decides. Some smaller properties then qualify for small business rate relief.

A busy city-centre flat usually passes these tests. Keep records of every night available and every night booked.

Does the Clean Air Zone affect short lets?

Birmingham's Clean Air Zone covers the city centre inside the A4540 Middleway, though not the Middleway itself. Cars, vans and taxis that do not meet the emission standards pay £8 per day, and coaches, buses and lorries pay £50. The zone runs 24 hours a day, and a charging day runs midnight to midnight.

• Guests. A guest in an older car pays every day they drive in the zone. Mention it in your listing and arrival guide, and point guests to the GOV.UK vehicle checker.
• Your team. Cleaners and trades with older vans pay too, and that cost can end up in their prices.

How is short-let income taxed?

The furnished holiday let tax regime ended on 6 April 2025. Short-let income is now taxed under the normal residential landlord rules, after allowable costs such as cleaning, repairs, insurance and management fees. Speak to an accountant about your own position.

What other running costs are there?

Service charges. Most Birmingham short lets are flats, with service charges for concierge, lifts and building insurance. Budget for rises.

Parking. City-centre parking is expensive. A flat with a space is worth more to guests, so say so in your listing.

Damage. Weekend group bookings carry more risk. Use platform damage protection and a clear house rules agreement.

Is a visitor levy coming?

The government has announced powers for mayors in England to introduce an overnight visitor levy. As of September 2026, nothing is in force in Birmingham. The West Midlands has an elected mayor, so keep booking records that separate the accommodation price from cleaning fees, in case a levy arrives.

How do the fixed costs add up?

1. Council tax with the premium, or business rates if you qualify.
2. Service charge and ground rent.
3. Utilities, broadband and TV licence.
4. Insurance suitable for short stays.
5. Safety checks, cleaning and laundry.

Then set those against realistic earnings. Our Birmingham events calendar shows where demand comes from, and Airbnb rules in Birmingham covers what to check first.

What does this mean for you?

• As of September 2026, a Birmingham second home on council tax pays double.
• A busy short let usually qualifies for business rates instead.
• Warn guests about the Clean Air Zone before they drive in.

Check the numbers for your home

Our Airbnb management in Birmingham team will show you likely earnings after fees, so you can weigh them against your costs. Get your free valuation to see whether the numbers work.

Get my free valuation

This is general information, not legal or tax advice. It is our own interpretation of the rules and figures as they stand on the date shown above, and they can change. Speak to a qualified solicitor or accountant before you act on anything here.