Short-term holiday letting (STHL) relates to the renting of the whole or part of a private home by its owner to a visitor on a commercial basis.
Given the recent growth in STHL, the government is looking at the economic contribution of the industry while managing any potential social and environmental impacts.
There are a number of options outlined in the Options Paper including greater industry self-regulation, registration or licensing of STHL operators, changes to strata laws and regulation through the planning system.
These options may be considered individually or in combination.
It is important for us to understand the range of community views on STHL prior to making a recommendation on the future approach.
Short-term holiday letting (STHL) has been carried out in coastal and other tourist destinations in NSW for many years, often without planning approval or incident. Internet platforms have generated new marketplaces for STHL, benefitting consumers and providers by lowering transaction and accommodation costs; providing opportunities to earn income from unused assets; and broadening the economic benefits of tourism.
STHL can be considered as the renting of the whole or part of a private dwelling by an owner to a visitor on a commercial basis, whether the owner is present or not. There is currently no consistent definition of STHL under the NSW planning system.
STHL can provide significant economic benefits to local, state and national economies. The popularity of online booking services and the growth of the shared economy has seen STHL expand in Australia and overseas. Per the Parliamentary Inquiry Report, a study by BIS Shrapnel estimates STHL contributes $31.3 billion to the national economy including upwards of 238,000 jobs1. Given the size of the economy of NSW, a significant portion of this activity takes place in NSW. NSW (including ACT) represents approximately 35% of holiday rental premises nationally2.
The rapid growth of the industry has led to the need to consider whether improved regulation of STHL is required to enable the activity to continue to take place without unduly impacting on local communities, the safety of visitors or introducing unnecessary red tape.
1 Parliamentary Inquiry Report, October 2016, p42.
2 Parliamentary Inquiry Report, October 2016, p23.
STHL is currently regulated in some local government areas through the planning system. Councils can generally determine the land use planning controls for STHL through their Local Environmental Plans (LEP), few LEPs in NSW refer specifically to STHL.
The LEPs that do address STHL use different definitions and thresholds for when STHL requires development consent. These LEPs either:
In 2016, the NSW Legislative Assembly Committee on Environment and Planning conducted an inquiry into the adequacy of the regulation of STHL in New South Wales. Three public hearings were held between March and May 2016 and 212 public submissions were received. The Committee’s final report was published on 19 October 2016 and made 12 recommendations. The full report can be found on the Parliament of NSW website.
The key recommendations were that the NSW Government:
This depends on the local government area in which you reside. STHL is currently regulated in some local government areas through the planning system. While local councils can generally determine the land use planning controls for STHL through their LEPs, few LEPs in NSW refer specifically to STHL. Please contact your council to get more information in relation to STHL provisions in your council’s LEP.
You can make a submission to let the government know what you think. In determining what the policy framework might look like there are a range of stakeholders that we would like to hear from including local councils, homeowners, tenants and holidaymakers, affected neighbours, strata corporations, STHL businesses, traditional accommodation operators and other downstream businesses.
The government welcomes your feedback. You are invited to respond to the ideas raised in the Options Paper by writing to the NSW Department of Planning and Environment.
You can provide your feedback by:
Yes. The policy options for STHL could include regulatory or non-regulatory approaches, or a combination of both. A combination of options can be chosen to suggest a policy framework for the STHL in the submission form. Other options not covered in the paper can also be provided.
Your personal information is protected under the Privacy and Personal Information Protection Act 1998 (PPIP Act). The Department collects personal information in submissions for the purposes set out in the Department's Privacy Statement.
We respect your right to privacy. Before lodging your submission, you will be asked to confirm that you have read the terms of the Privacy Statement, which sets out:
When you make a submission, we will publish:
We will not publish offensive, threatening, defamatory or other inappropriate material.
If you do not want your personal information published, do not include any personal information in your submission.
All other information gathered in this submission form will be collated and used towards making a recommendation on the future approach of STHL in NSW.
The NSW Government welcomes your feedback on the Options Paper for short-term holiday letting. You can provide your feedback by:
Director, Housing Policy
Department of Planning and Environment
GPO Box 39 Sydney NSW 2001
If you have further inquiries, please email us at firstname.lastname@example.org.
Page last updated: 02/08/2017