Councillor Richard Foley's efforts to look into the effect short-term stays have on housing crisis divides council

In a notice of motion to Monday night's meeting, Councillor Richard Foley called for the council to prepare a report exploring the possibility of a rate variation or levy being imposed on any property within the LGA used primarily for "unregulated short term letting", such as Airbnb.

Cr Foley also wanted the general manager to write to the owners of properties used for short-term stays asking them to consider putting these homes on the rental market to alleviate the housing crisis.

He likened the effect Airbnb is having on the local rental market to Ubers putting cabs out of business.

"The reality is, we're heading in a bad way. We have a whole class of people falling out of the middle class ... living one week to another, living paycheck to paycheck," Cr Foley said.

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But he faced opposition from his fellow councillors who didn't see a rate variation as the answer, or Airbnb as the problem, to our city's housing woes.

Councillor Tim Koschel said a special rate variation would set a bad precedent.

"How far do we go?" he said.

"Do we then put a special variance on businesses that work from home because we'd have vacant businesses on the main street.

"At the moment to me, economics 101, if we put a special rate variance on a property that property is going to go up in price."

Councillor Georgie Davies opposed the motion. She said it is not up to council to decide how people choose to invest.

"If people choose to invest their money into properties ... then we shouldn't be taxing their investment decision. That's no different to somebody deciding to invest their money into shares or a new business venture," she said.

Cr Davies said the council should instead focus on increasing housing supply through the town planning instrument.

Councillors Mick Henderson and Rod Kendall also opposed the motion, which eventually passed, supported by councillors Dan Hayes and Amelia Perkins and mayor Dallas Tout - but with some amendment.

The report will not focus on a special rate variation, nor will the general manager write to any Airbnb owners.

The report will still look into how short-term stays impact the local rental market.

"I'm trying to search for solutions," Cr Foley told his fellow councillors.

"I'm not talking about the communist manifesto and taking people's property from them."

Cr Foley said despite the changes, getting a report was a positive outcome and will get people thinking about the issues.

"The original way I've written this is probably poorly drafted and a bit blunt. I'm looking for solutions. We need to, as councillors, be part of solutions and not rely on government," he told The Daily Advertiser.

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