Plan to cap Byron Bay short-term housing taken out of council hands

Tonight Byron Shire councillors are scheduled to vote on a proposal to reduce non-hosted short-term rental accommodation in parts of the shire from 180 days to 90 days.

Supporters of the plan say a cap is needed to ensure stable, long-term rental accommodation to the rental market for residents in a region that has become a tourism hotspot and a favourite for out-of-town property investors.

But a late intervention by the state government planning minister means the NSW Independent Planning Commission will have the final say after tonight’s vote.

Byron Shire Mayor Michael Lyon said he was surprised by the state government revoke an earlier commitment to allow the council to decide on its Short Term Rental Accommodation (STRA) Planning Proposal.

“I am surprised and disappointed because we have been working towards this for several years, and our proposal to cap areas for STRA to 90 days in parts of the Byron Shire is a modest one seeking balance, in the best interests of our community,” he said.

Byron Shire has some of the highest rates of housing stress in NSW. More than half of those renting spend more than 30 per cent of their household income on rent.

According to the Regional Australia Institute, the number of people moving to Byron Shire from the capital cities jumped 33 per cent in the 12 months to June 2021.

And there are concerns short-term holiday rentals had cut the supply of long-term homes in the area, making it harder for even professionals to find a place to live.

Lyon acknowledged the proposed cap on short-term accommodation was unpopular with parts of the property sector, but it was necessary.

“There are economic benefits to the proposal because there are so many jobs not being done currently in our shire because there is nowhere for people to live.

“Conversely, there is more than enough short-term accommodation for visitors, but if it were to be occupied, we wouldn’t have the staff in the shops and restaurants to service them.”

NSW Department of Planning and Environment’s Deputy Secretary of Planning, Marcus Ray, said the issue of capping short-term accommodation in Byron Shire was a “contentious matter”.

“In light of the 1500 pieces of feedback received by the Council on the proposal through formal submissions, an online survey and a petition, and the potentially significant economic impacts such a change could have on local businesses, the government has asked the IPC to not only advise on the proposal but also whether the Government should allow the proposed changes to go forward.”