Mayors across New South Wales will look to adopt strict limits on short-term holiday rentals to address housing shortages if the state government accepts recommendations to allow the Byron shire council to impose a 60-day annual cap.
Amid warnings from Airbnb that such a cap would cause a hit to Byron Bay’s economy, the Blue Mountains mayor, Mark Greenhill, said he would jump at the chance to impose a similar cap in the region, which is facing comparable pressures.
“I am not against Airbnb but I am against the unregulated nature of it,” he said on Friday.
“We are the same as Byron – a tourist destination … if Byron gets it, we’ll use it.”
The recommended 60-day cap was outlined in advice handed down this week by the state’s Independent Planning Commission, after the Byron shire council last year voted for a 90-day cap. The advice was sought after the former NSW government intervened and quashed the plan.
The commission recommended a more severe tightening to 60 days would provide sufficient incentive that would more likely see people return properties to the longer-term rental market while supporting “incidental use of homes” as holiday homes.
The planning minister, Paul Scully, is yet to make a ruling, but the advice was welcomed by Byron Shire mayor, Michael Lyon and many in the community.
Other local government leaders said they may consider similar limits to improve housing affordability for residents including nurses and teachers, who struggle to find accommodation in part due to homes being tied up in short-term rentals.
The mayor of the Snowy Monaro regional council, Narelle Davis, said her region was similarly affected by high levels of housing stress, especially during the ski season.
“We have an overall housing shortage – emergency workers, nurses, doctors, all of our essential service people coming in are struggling to get accommodation,” she said.
“We would certainly look at what Byron does and consider what our options are.”
Davis said much of Jindabyne was locked up in short-term rentals. Forcing people to release those properties for workers could be part of the solution, but more needed to be done to boost housing stock overall, she said.
The mayor of Ballina shire, which neighbours Byron, Sharon Cadwallader, said there was a major issue with housing in the region.
But she said people should be aware of the potential effects that such limits could have on tourism if accommodation becomes harder to come by.
“If you want to attract conferences, you need accommodation. For the economy, it’s very important,” Cadwallader said.
Business NSW’s Northern Rivers director, Jane Laverty, said tight caps were not the answer and short-term letting was important to keep people coming to the region and supporting small businesses.
“The affordability and housing crisis is not going to be solved by curtailing short-term holiday rentals,” she said. “The focus should be on increasing the number of new homes across the state.”
The Waverley mayor, Paula Masselos, whose council oversees popular spots like Bondi and Tamarama, was continually monitoring the appropriateness of the state laws covering Airbnb and said she would consult with the community on any changes.
“Short-term rental accommodation does impact housing affordability, residential amenity and the displacement of long-term residents,” she said.
But the advice was not welcomed by all, including Airbnb’s head of public policy in Australia, Michael Crosby, who said the company and homeowners who use the platform in Byron Bay were surprised and disappointed by the recommended cap.
“[It] would have significant negative economic impacts on a town and region that is heavily reliant on tourism – and could hurt jobs and small businesses at a crucial time,” he said.
