The NSW Government is undertaking a review of the regulatory framework for short-term rental accommodation (STRA) in NSW.
In early 2024, we sought public feedback through a consultation process that included a series of workshops held between February and March with key industry stakeholders, including local government, booking platforms, STRA industry groups, property groups, tourism associations and housing advocates.
A public discussion paper and an online questionnaire were exhibited from 15 February to 14 March 2024 on the NSW Planning Portal. The discussion paper sought feedback on the planning policy and regulatory framework for STRA and options to encourage the supply of long-term rental accommodation.
We received over 430 submissions and more than 2,400 survey responses to the online questionnaire. We have heard from councils, booking platforms, property owners, and the tourism sector, among others.
We thank all stakeholders involved in the consultation process. Your views are important to the NSW Government.
We are now considering all submissions and investigating all options to help unlock housing supply and improve housing affordability in NSW.
The feedback received will help make sure we strike the right balance between the benefits of short-term rental accommodation, including to the tourism economy, and encouraging more supply of long-term rental accommodation in NSW.
Any changes will be considered and calibrated in the context of the Government’s recently announced broad investments in housing, homelessness, rental support and protection, and in the planning system.
As announced in the 2024-25 Budget, the Government is investing:
- $5.1 billion to build 8,400 new social homes.
- $1 billion to repair 33,500 existing social homes.
- $655.1 million for key worker build to rent accommodation across metropolitan areas of the state and for key health worker accommodation across rural and regional areas.
- $555.5 million to speed up the planning system and construct more housing enabling infrastructure.
- $527.6 million for emergency housing and homelessness support services.
- $11.8 million to support the growing number of renters in apartments with an expanded Strata & Property Services Commissioner, as well as $8.4 million for the Rental Commissioner to develop and enforce renter protections.
And in July, after a comprehensive consultation process with more than 16,000 submissions and survey responses received from the general public, the Government announced new laws to help make renting fairer, including:
- Ending no grounds evictions: under new laws, if the homeowner wishes to end a lease, evidence must be provided with a termination notice, with penalties payable by homeowners providing non-genuine reasons.
- Extending notice periods: under new laws, the termination notice period to tenants on fixed term agreements of less than 6 months will be increased from 30 days to 60 days, and for fixed term agreements of more than 6 months, the termination notice period will be increased from 60 days to 90 days.
- Introducing a Portable Rental Bonds Scheme: the Rental Commissioner is leading the development of the Scheme to make it easier for renters to move between rental homes by allowing eligible tenants to digitally transfer their existing bond to their new home.
The Government will begin stakeholder engagement on these changes and will aim to introduce new legislation in the September sittings of Parliament. These changes are expected to begin next year.