This article is from the Australian Property Journal archive
HOLLYWOOD and billionaires playground Byron Bay is tightening the cap on non-hosted short-term rental accommodation from 180 days to 60 days per year, in an effort to see homes to be returned to the long-term rental market.
The NSW Government has endorsed the changes following the submission of a planning proposal by the Byron Shire Council to reduce the allowance of days for some non-hosted short-term rental accommodation (STRA).
“It’s well known there has been an undersupply of housing, particularly affordable and diverse housing across the Byron Shire for many years. This shortage of housing largely affects key workers and permanent residents,” said Paul Scully, minister for planning and public space.
“These changes to short term rental accommodation only addresses part of Byron’s housing supply and affordability issues, and it was important for me to clearly understand council’s plans to deliver more housing through other mechanisms, before making a decision on the proposal.”
Cutting down from 180 days to 60 days per 365-day period was done in response to the Independent Planning Commission’s recommendation.
“After reviewing council’s housing response, I am satisfied with the response and have decided to endorse the new cap across parts of the Byron Shire, as recommended by the IPC,” added Scully.
“I recognise short-term rental accommodation is a complex matter in the Byron Shire and the housing market and affordability pressures here are particularly acute.”
Some high tourism precincts in Byron Bay and Brunswick Heads, near beaches and services, have been identified by council to operate without a cap at all.
“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,” said Scully.
“In the current housing crisis, it’s important every available means to boost housing stock for the community is utilised, including a shift from non-hosted STRA to long-term rentals.”
Hosted short-term rentals, where the host continues to reside on the premises during a guest’s stay, will not be affected by this decision and can be undertaken 365 days per year.
There will be a 12-month transition period for the community and industry to prepare before the new rules to take effect on 26 September 2024, ahead of the 2024–2025 summer season.
Non-hosted STRA is currently restricted to a maximum of 180 days in any 365-day period in Greater Sydney and self-nominated local government areas such as Ballina, Byron, parts of Clarence Valley and parts of Muswellbrook.
While non-hosted short-term rentals outside of these nominated LGAs may take place 365 days a year.
The short stay accommodation sector is under pressure across the country, with Victoria’s recent Housing Statement confirming the country-first 7.5% The Short Stay Levy.
