In a bid to free up more homes for the long-term rental market, the New South Wales (NSW) government’s independent planning tribunal has allowed Byron Shire Council to cap the number of nights a homeowner can rent out a short-stay rental to 60 nights a year.
NSW Planning Minister Paul Scully announced the change on Sept. 26, saying that short-term rental accommodation was a “complex matter” and that the introduction of a 60-day cap aims to incentivise landlords to offer their properties for long-term rentals.
Mr Scully said, “Given the region’s unique and exceptional circumstances as one of Australia’s most visited tourism destinations, it is crucial housing supply shortages are addressed and more homes are returned for permanent residency, particularly to have workers in the visitor economy.”
The new rules will take effect on Sept. 26, 2024, and will only impact properties rented for the sole purpose of short-term stays.
The Number One Issue in the Community, Mayor Says
In a statement on Sept. 22, Byron Shire Mayor Michael Lyon said, “Housing is the number one issue for our community and lack of affordability and supply is having a massive impact on the social fabric of our shire as well as the economy.”He went on to say, “We have the highest rate of rough sleepers in NSW; we have a community still reeling from the floods; we have people who cannot find affordable long-term housing and we have businesses who can’t find staff because workers can’t afford to live here.”
Airbnb Warns 60-Night Cap Will be ‘Catastrophic’ for Economy
The Epoch Times spoke to Head of Public Policy for Airbnb Australia and New Zealand Michael Crosby who said that a “60-night cap would be even more catastrophic for jobs and the local economy” as there was little evidence to suggest a cap could free up housing.He went on to say “A significant reduction in short-term rental accommodation availability means Byron Shire will have less capacity to welcome the visitors that make events like Splendour in the Grass, Blues Fest, and the Byron Bay International Film Festival possible.
“It’s critical to remember that these events support thousands of jobs and hundreds of businesses across Byron Shire.”
Mr. Crosby said that many of the properties on Airbnb would not be available for long-term rent anyway saying many properties were often used as holiday homes.
“There are also numerous categories on Airbnb, many of which are unique, and wouldn’t be considered appropriate for the long-term rental market,” he said.
Mr. Crosby called the Shire’s rules confusing, saying it was better to have state-wide regulation rather than piecemeal council-by-council rules.
His concerns were echoed by competitor the senior director of competitor Stayz, Eacham Curry, who also said the rule changes would not alleviate housing supply problems.
“It will only limit accommodation options for tourists and income for mum and dad retirees,” he said.
