Byron Shire council’s planned 60-day cap on short-term rentals such as Airbnbs to ease pressure on the housing market would not come into effect until the middle of next year if the government decides to allow it, the holiday hotspot’s mayor says.
And if the tightened rules are approved by the New South Wales government, they will just apply to Byron and not other councils also struggling with housing amid a statewide shortage.
Byron is waiting for the NSW government to formally respond to independent planning advice from April that advocated for a 60-day annual cap, going even further than the council initially wanted. The planning minister, Paul Scully, is expected to hand down a final ruling on the advice in coming months.
The Independent Planning Commission (IPC) concluded tightening the rules would provide enough incentive to get people to put properties on the longer-term rental market while supporting “incidental use of homes” as holiday rentals.
“The minister … is currently considering the recommendations handed down by the IPC in relation to the Byron Shire short-term rental accommodation planning proposals,” a Department of Planning and Environment spokesperson said.
“He is reviewing it in light of the recent position by council to improve housing supply in the shire. The decision will only apply to Byron Shire.”
The government said a further review of the short-term rental situation was needed to understand if caps would work due to the specific advice from the IPC, despite pleas from other councils. That review will kick off later this year.
Scully said earlier this year he expected about 12 councils to request similar powers.
There were 45,209 short-term rentals registered in NSW in May – an increase of 13,000 since December 2021.
The Byron Shire mayor, Michael Lyon, said work between the council and the department was “proceeding well” after providing the agency with further information about the shire’s longer-term housing strategy.
“We’ve had further legal advice about how to best implement the IPC recommendations and our staff continues to work with the department,” he said.
While the council hopes to have formal approval to move ahead with plans soon, they don’t expect to implement the rules until mid next year, to give themselves time to design a scheme in time for the 2024 summer period.
The Airbnb Australia public policy head, Michael Crosby, has rejected the claim that such a decision would improve the housing situation in Byron and urged the government to keep rules consistent across all councils “to minimise red tape and confusion”.
He said NSW could instead look at opt-in tourism levies that would charge guests a fee – about the price of a cup of coffee – to be put towards more housing.
“This would mean every short-term accommodation booking contributes to new housing projects or supports local infrastructure without placing the costs on local ratepayers or small businesses,” he said.
“It is much more appropriate that the existing statewide rules, rather than a council-by-council approach, are retained to minimise red tape and confusion.”
Crosby warned any limits on Byron would be “catastrophic for jobs and the local economy”.
