The commission noted the social impact of the short-term rental market was “more significant” in Byron Shire than in other parts of Australia,given the high proportion of properties available for holiday letting and the region’s issues with housing affordability and availability.
Byron Shire has the highest level of rental stress in the state,according to the 2021 Census. Half its tenant households spend more than 30 per cent of their income on rent,and according to Domain,vacancy rates in the Far North Coast region are about 1.2 per cent.
Byron Bay’s housing affordability crisis is blamed,in part,on short-term holiday rentals such as Airbnb.Credit:Alamy
The number of properties advertised on Airbnb in the Byron Shire grew by 19 per cent in 2022,according to a report by the Australian Housing and Urban Research Institute,while the number of available long-term rentals fell by 34 per cent.
Housing advocacy group Shelter NSW said the recommended 60-day cap was a better outcome than it had expected to address the “dire” situation in the Byron Shire.
“They can’t get anyone to work in the pharmacies or in any sort of job that you would need for a community to function,” policy officer Kayla Clanchy said. “It’s not sustainable.”
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She said the commission had acknowledged that rentals over 60 days meant the property was no longer for “residential use”. This advice would encourage other councils to negotiate their own tighter caps with the state government.
“There have been some councils waiting in the wings to see what will happen with Byron … what was the lowest cap Byron could get,” she said.
“Particularly during the COVID domestic tourism boom,this has become more of a concern around the Shoalhaven and Eurobodalla,and down the South Coast.
“Hopefully this will set the precedent for other councils to feel emboldened to go to the Department of Planning and negotiate a lower cap,and allow them to go through that process faster.”
Non-hosted holiday rentals are already limited to 180 days in Byron Shire and a handful of other local government areas under state regulations.
Byron Shire Council had sought to tighten that limit to 90 days across most of the shire but to allow unlimited short-term rentals in some precincts,including parts of Byron Bay township itself.
Lyon said that planning proposal was the result of negotiations with the state government and he would welcome an even tighter cap.
The commission also said the owners of short-term rental properties should pay a levy to the council to counter the effects of tourism on local amenities.
And it said the government needed to work with the council to support the “urgent release” of more land for housing development within Byron Shire.
During hearings into the issue in February,advocates for the short-term rental market blamed the council’s planning policies for the housing crisis.
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Owners of holiday rentals also spoke out against further restrictions,pointing to the importance of tourism to the region’s economy.
The commission also recommended the government adopt measures to improve compliance with the short-term rental accommodation’s code of conduct.
Scully said he would consider the commission’s recommendations before making a final decision on the planning proposal for the Byron Shire.
“We recognise maintaining the function and character of places people live is important,while maintaining the appeal for visitors,” he said. “I will consider the findings in this context.”
Airbnb and the Australian Short Term Rental Association have been approached for comment.
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