South Coast mayor slams State Government response as housing crisis worsens

More than 8000 holiday homeowners on the NSW South Coast were called on by the region’s mayor to release their homes into the short term rental market amid a widespread housing crisis. Only 30 joined the cause.

Eurobodalla Shire Council Mayor Mathew Hatcher has hit out at the state government over its refusal to sign off on reforms that would see residents living in primitive campgrounds and caravan parks able to stay for as long as two years amid an unprecedented housing crisis.

Under NSW Government legislation, people found living at the many campgrounds throughout the shire are allowed to stay no longer than 50 days. In June, Mr Hatcher wrote to the council to change that, but said the response he received “did not inspire confidence”.

“While NSW Planning acknowledges the issues, and I do appreciate that, they’re effectively kicking the can down the road,” Mr Hatcher said.

“They want to rely on the response to the NSW Housing Taskforce and other components of their new housing package, and while these are worthy pieces of work that need to be done, they are long-term responses that will not give our residents the relief they need now.”

The call comes as the council grapples with a widespread housing shortage.

Last month, Mr Hatcher wrote to the more than 8000 non-resident ratepayers, urging them to enter their homes into the short-term rental market. The letters were sent to more than 3000 Canberra-based homeowners, as well as many Sydney residents.

While some 150 calls and emails have been responded to, according to council only 30 homeowners have said they intend to, or already have, placed their secondary property into the rental market.

Mr Hatcher was nonetheless confident in the initiative.

Eurobodalla Shire Council Mayor Mathew Hatcher. Picture: Nathan Schmidt

“I’ve been blown away with the response,” he said.

“A simple letter has brought people together to help each other out.”

A further 10 callers specifically asked to rent their property via a social housing agency, and have been directed to the local NSW Department of Communities and Justice unit, according to a council spokesperson.

A request to amend planning laws that could have seen a temporary restriction on the number of days dwellings used for short-term rentals could be leased for was also rejected by the NSW Department of Planning, Mr Hatcher said.

While a controversial approach to increasing long-term rentals, Mr Hatcher said without the availability of a quick regulatory response, it was not a conversation worth starting with the community.

“Airbnb-style accommodation is important to our shire and many others,” he said.

“However, in a time of crisis having the state government provide the levers to allow a quick, temporary change to regulations would at least make those community conversations worthwhile.

“At the moment it would take around 12 months to have a planning proposal prepared and approved to permit any change to short-term rental accommodation regulations in Eurobodalla.”

Mr Hatcher said the shire and its residents could not wait for the government’s longer-term strategies to take effect.

“There isn’t a single ‘silver bullet’ solution to this crisis, so we need to accumulate small wins to claw back as much affordable accommodation as we can for our residents,” he said.

“I’m frustrated the government can’t see that these small gains are important right now.

“We’re in a crisis. And in a crisis anything that can be done should be done to relieve the pressure.

“These matters are now with the Premier and I hope he sees sense.”

In the wake of the Black Summer bushfires, the then-Eurobodalla Shire Council successfully lobbied for a two-year stay to be implemented in caravan parks and campgrounds for those affected by natural disasters and the Covid pandemic.

Mr Hatcher said the housing crisis should be added to that list.

In a statement, a spokesperson for the Department of Planning and Environment said there is no state-wide limit on how caravan parks can be used for housing, other than the requirement for local councils to assess whether parks are suitable for longer term accommodation through a development application.

“While some are approved for longer stay residents, not all parks are suitable for this and this should be considered on a case-by-case basis through a development application rather than a blanket policy,” the spokesperson said.

They further stated that the council can also reduce the number of days homes can be rented out as short-term rental accommodation through an amendment to their planning controls.

“All councils were asked if they wanted to cap the number of non-hosted days and Eurobodalla chose to allow it for 365 days,” the spokesperson said.

“They can still lodge a planning proposal to reduce it to 180 should they wish.

“The planning system cannot compel people to use their homes in a particular way. What it can do is enable a steady supply of new housing supported by the right infrastructure.

“Councils are responsible for planning for new housing supply and the NSW Government is providing financial and other assistance to councils to help boost regional housing supply.”