The state government has postponed the announcement of proposed regulations for Airbnb type operations after strong opposition from its own backbench.
In a major embarrassment, a scheduled media conference involving the Minister for Better Regulation Matt Kean and Minister for Planning and Housing Anthony Roberts was cancelled.
The government had been planning to announce regulations that have been developed following years of consultation.
Regulations reportedly included a cap of 180 days a year on the number of days homes in Sydney could be rented as short term stays.
However, strata bodies would not have been allowed to ban short-term letting.
The chairman of the strata committee of Miranda apartment block The Wilshire, which has been trying to stop short-term holiday letting, was delighted the backbench stood up to the cabinet.
“We are very pleased the government has backed away from their proposal which would have opened every unit block in Sydney to short term letting,” Rob Pithers said.
“Our committee had the backing of the vast majority of the owners in The Wilshire.
“It demonstrates the little person, if they are committed, can take on big business and government to get a satisfactory result.”
The Sydney Business Chamber was disappointed with the government’s failure to make a decision.
Executive director Patricia Forsythe said “No one thought that creating the regulatory framework would be easy...[but] doing nothing can never be an option”.
“While the government has been consulting stakeholders and reviewing its options, the community has embraced the concept of short-term letting either as hosts or guests and it is very clear that short-term letting has become a significant economic driver for NSW,” she said.
“Based on 2017 figures, it is estimated Airbnb guests contributed $987 million to NSW’s gross state product and helped support more than 7300 full time jobs.
“During periods of high tourism demand such as New Year or other major events for which Sydney is famous, short-term holiday letting is playing a vital role in ensuring that those people who want to visit Sydney are able to find accommodation.
“The genie is well and truly out of the bottle on the use of private accommodation for short-term rental, and creating a regulatory framework that allows it to succeed has to be the responsibility of the government.”
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