Getting a holiday house or apartment could soon get harder in the popular coastal destination of Byron Bay in northern New South Wales.
In a shock move, the state's Independent Planning Commission (IPC) has recommended the Byron Shire Council be given the power to impose a 60-day annual cap on short-term holiday lets where the owner or host is not living there on a case by case basis.
The council was set to impose a 90-day limit in parts of the shire when the state government stepped in late last year following a recent boom in online holiday letting platforms such as Airbnb.
Byron Shire Council Mayor Michael Lyon said the 90-day limit was always a compromise.
"My reaction is ecstatic," he said.
"There is a real appreciation by the Commission of the local conditions that we are facing and the importance of having local decision makers able to have the power to implement solutions for the local area."
Last year's devastating floods in northern NSW highlighted the lack of housing stock for locals left homeless.
Local politicians at the time said the Byron shire was in the grip of a "housing emergency".
In two days of public hearings, the IPC received more than 500 written submissions and said rental availability and affordability was a key consideration.
Mr Lyon said the recommendation was just the start.
"We have been very clear this is just part of the puzzle. It is really important to have a really strong foundation when you are adding more housing supply particularly to a coastal, regional area," he said.
He said the Commission hearings allowed an opportunity for locals to be heard.
"There were happy faces around Council today and a feeling of appreciation for actually being understood because we have been fighting hard on this. We are not doing this to be mean spirited, it is nothing personal, this is about the broader needs of our whole economy and our whole community."
Colin Hussey is the chief executive of local short-term rental business A Perfect Stay and the chairman of the Byron Bay chapter of industry lobby group the Australian Short Term Rental Accommodation Association (ASTRA).
He said if a cap of 60 days was imposed, it would be devastating for the local economy.
"There is about 1,300 holiday homes registered in Byron and that supplies a huge array of accommodation for mostly Australian families to holiday," he said.
"They spend around $400 million in the Northern Rivers region.
"Tourism is the number one economic driver in the Byron Shire, and holiday homes bring the highest yielding, most valuable and lowest-impact guests into the region.
"If you remove the accommodation that they stay in, they are not going to be able to come here. There are many other coastal towns who would like to take up the mantle."
He said according to modelling from the industry's own data, 1,400 jobs would be lost.
Mr Hussey said changing the current homes being used for short-term holiday rentals would not mean more affordable housing would come on the market.
"We have surveyed holiday home owners and the majority — 97 per cent — said they will not move across to permanent rentals," he said.
In a statement, NSW Planning Minister Paul Scully said his office had received the Commission's advice.
"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," he said.
Mr Scully said he would review the report in detail over the coming weeks.
