NSW Independent Planning Commission recommends 60-day annual limits for short term rental in Byron Bay

A major breakthrough has occurred after years of heated debate around short-term rentals in Byron Shire – and it could have a dramatic impact on the rental market.

Byron Bay is one of Australia’s most popular tourist destinations

A major breakthrough has occurred after years of heated debate around short-term rentals in Byron Shire, which is one of Australia’s most popular tourist destinations.

It comes after an increase in holiday rentals in Byron through platforms such as Airbnb and Stayz and struggles for renters to find a home in the Northern Rivers after the 2022 floods.

The Independent Planning Commission has released advice stating a previously planned 90-day annual cap on short term rentals in Byron Bay could “lead to unintended adverse consequences”.

The commission wrote in its report that a “60-day cap is more likely to have the desired effect“.

“(As) those who would leverage a 60-day cap would be more likely to be owners of holiday homes or residents seeking a supplementary income, rather than those investing in housing assets purely for use as non-hosted short term rental accommodation,” the report states.

The recommendation now means Byron Shire Council could impose a 60-day cap.

Byron Shire Mayor Michael Lygon said he was thrilled with the outcome. Picture: Julian Meehan.

Byron Shire Mayor Michael Lyon said he was thrilled with the recommendation.

“I’m very happy with the outcome,” he said.

“The Independent Planning Commission did a real deep dive into the issue, and they understood it.

“They listened to a broad range of feedback from various stakeholders and they have come up with a suite of recommendations that go to the heart of the matter and can give the council the power that we need to regulate holiday letting in a way that will protect our housing supply.”

Byron Bay has long been a popular tourist destination. Picture: Steve Holland

In comments submitted to the Independent Planning Commission – among 500 submissions – one Byron resident said she supported the proposal because Byron Bay “is not just a tourist town”.

“For too long absent owners of short-term rentals have disrupted neighbourhoods, especially in Byron Bay,” she wrote.

“The essential fabric of living in communities will be enhanced when residents know their neighbours, a facet much needed in February (and) March 2022 with the destructive floods and landslips.”

Short-term rentals have long been a source of tension in this popular tourist destination.

But others, such as an Airbnb property owner, objected to the rental cap.

One owner stated her family relied heavily on income earned from short-term rentals.

“We rely heavily on the income to cover our life and with the interest rates doubling and cost of living going through the roof, now is just not the time to make this drastic change to our ability to pay for our family,” she stated.

Mr Lyon said he believed NSW Planning Minister Paul Scully would “be hard pressed” not to endorse the commission’s advice.

“These are independent experts that have done a lot of work to understand the issue, so I would expect that the Labor government would have to listen to them,” he said.

Paul Scully said his office is currently reviewing the advice provided by the Independent Planning commission on Byron Shire short term rental accommodation.

“I’ll review the report in detail over the coming weeks,” Mr Scully said.

“We recognise maintaining the function and character of places people live is important, while maintaining the appeal for visitors. I will consider the findings in this context.”

Originally published as NSW Independent Planning Commission recommends 60-day annual limits for short term rental in Byron Bay