The City of Melbourne will encourage short-term accommodation operators to shift their properties onto the long-term rental market to deliver more homes for people wanting to live in Melbourne.

Melbourne has one of the biggest short-term rental markets in the country, with more than 4,100 residential properties currently being used for short stays in the City of Melbourne.

This means fewer homes available for people wanting to live in Melbourne, including key workers and students.

As Australia’s fastest growing city, Council must consider all options to create more housing supply.

At Tuesday’s Council meeting, councillors will vote to commence a consultation process to inform the development of new local laws that are designed to encourage the flip of short-term accommodation into long-term rentals.

If endorsed, Council will consult extensively with the community and key stakeholders – including short-term rental owners and operators – on any new policy options for the short-stay accommodation sector. Any new regulation would not be introduced until February 2024.

Options under consideration include a registration fee and a cap on the number of days a property is available for short-term rental.

A short-term rental accommodation local law would not apply to hotels or motels. The proposed changes are designed to ensure the city’s tourism sector continues to thrive, with more than 10,000 new hotel rooms becoming available in the past two years.

Housing is primarily a responsibility for the State and Federal Governments, and Council will continue to do what it can to advocate for practical solutions to increase the housing supply.