Australia’s largest city will impose tough new restrictions on Airbnbs under new laws set to take effect in February.
Melbourne’s city council has approved a plan for a new annual registration fee for short-term rentals, as well as restrictions on the number of days they can be rented out, with the details to be confirmed after a consultation period that ends in November.
Melbourne Lord Mayor Sally Capp said the measures were designed to tackle Melbourne’s housing crisis.
“We’ve got a housing crisis around Australia and here in Melbourne, we’re at point 0.8 per cent vacancy for rentals,” Ms Capp told 3AW’s Neil Mitchell.
“[There are] tens of thousands of workers that we need to come into the city to support our hospitality businesses, arts organizations, aged care operators; where are they going to live?
Melbourne Lord Mayor Sally Capp said the new Airbnb restrictions were designed to combat Melbourne’s housing crisis. Picture : NCA NewsWire / Ian Currie
The Lord Mayor said the goal of the proposal was to incentivise property owners to change their short-term accommodation to long-term homes, describing it as “one of the quickest” ways to create more long-term housing.
Ms Capp said the exact annual registration fee would be worked out through the consultation process, pointing to Warrnambool’s $450 fee and Sydney’s $100 fee as examples of what it could look like.
However the Melbourne Lord Mayor said the current proposal was to restrict the number of days Airbnb’s could be rented out to around 6 months.
“The research in terms of cities around the world shows us that it’s actually the cap on nights, that’s the more compelling lever,” she said.
“And at the moment, the proposition is 180 days, which again, is really on the more generous side. It’s the same as Sydney. It’s far more generous than, say San Francisco, which is at 30 days.
“And we’re really looking forward to that consultation so that we can get more feedback to understand what would actually be effective.”
Melbourne’s Airbnb owners will be hit will new restrictions under local laws set to take effect in February 2023. Picture: Getty Images
Melbourne currently has approximately 4,100 short-term stay listings, which accounts for about 14 per cent of the city’s total residential housing stock.
Ms Capp acknowledged that the new local laws would infringe on the rights of property owners but said the decision had not been taken lightly.
“Stepping in to impact private rights really is a big deal and that’s why the consultation is important. This can be very nuanced, this discussion, and we want to make sure that the local laws are as thoughtful and effective as possible,” she said.
“We really want property owners to be the heroes in what is a housing crisis. This is not the only initiative to drive housing supply… but it’s existing housing, it’s the quickest way we can create more long-term housing for workers and we feel it needs to be considered.”
