October has proven to be a busy month for housing in the City of Sydney LGA. Council  exhibited its affordable housing contribution scheme (AHCS) review for comment. It also passed a motion to investigate a 60-day cap on non-hosted short-term rental accommodation (STRA), as well as other regulatory measures to limit the proliferation of short-term rentals in the LGA.

The AHCS review sought to ‘iron out’ emerging creases, such as limitations on the powers of the consent authority to decide on appropriateness of cash or in-kind contributions, and amend the dollar contribution amounts to better reflect City of Sydney sub-markets price points and the cost of delivering of affordable housing dwellings. Shelter NSW is supportive of these proposed changes and commends Council for its leadership in affordable housing delivery and management.

Shelter NSW’s submission to the review can be read here.

Concerned with not only new housing supply, but also maintenance of existing stock in the private rental market, the City of Sydney passed a motion to investigate a 60-day cap on non-hosted STRA as well as other regulatory and monitoring measures to better strike the balance between local livability, affordability, and tourist accommodation availability.

A 2024 review into the LGA’s short-term rental accommodation sector found that the regulatory environment overly facilitated the transfer of dwellings from long-term to short-term rental markets. While numbers of STRA dwellings have decreased since the COVID-19 pandemic, the review held serious concern over the impacts of the short-term rental market returning to pre-pandemic heights in the already low vacancy context. It also noted lack of effective oversight hindered a proper investigation of current impacts of STRA on affordability and availability of rental housing for Sydney residents.

The City of Sydney’s investigation is a promising step towards better regulation of the short-term rental market and follows the lead of the Byron Shire LGA, as well as various interstate jurisdictions. While this will not be the silver bullet to housing affordability and availability woes, it’s an important move to ensure that the suburbs of the City of Sydney continue to provide long-term homes and support existing communities.

Shelter NSW hopes that leadership from City of Sydney and Byron Shire LGAs will soon be supported by better and tighter regulation from NSW Government, which is yet to release its findings into the short-term rental regulatory framework.