While Councils throughout Australia have introduced restrictions on short-term holiday letting, new research shows it is doing little to improve the supply of long-term housing.

Some councils are forcing owners to pay higher rates if they list their properties on short-term letting apps such as Airbnb or Stayz while others are restricting the amount of time properties can be rented for holiday letting during the year. Researchers from the University of Queensland analysed whether restricting the amount of time property could be used for holiday letting would free up homes for long-term rental or reduce rents.

Professor Alicia Rambaldi and Dr Frank Zou found that while restrictive policies resulted in a temporary drop in listings of properties on short stay sites, it soon reverted back to previous levels. “(There was) no significant or sustained reduction in short-term rental activities,’’ Zho says.

The researchers say it is difficult for councils to check if owners are operating within the rules. Rambaldi says they found no significant rent decrease in rents in the study area either. “Even with restrictions, not everyone will put their short-term rental property back onto the long-term rental market—it’s just not realistic.”