The Shire of Murray is moving to limit the spread of short-term rentals in Dwellingup after a community survey revealed fears the town is becoming a "weekend town" and losing its primary school. The draft unhosted short-term rental accommodation (STRA) planning policy aims to introduce development guidelines and restrict where STRAs can operate without approval.
Policy Details
Under the proposed policy, shire approval will still be required for larger STRAs and any proposed in Dwellingup. Short-term rentals will be limited to the town centre. The policy does not impose a blanket ban but seeks to balance tourism benefits with the need to protect permanent housing supply, community sustainability, and essential services.
Community Concerns
The shire received 91 submissions during the consultation period, which it described as a substantial sample. The survey showed community support for tourism but clear opposition to unrestricted growth of unhosted STRAs, which were seen as reducing the availability of permanent housing. Many respondents described Dwellingup as a "weekend town," with houses vacant mid-week and some businesses only open from Friday to Sunday.
One submission stated: "A lot of the houses that come on to the market are well out of the reach of young families, partly due to investors purchasing houses for STRA pushing the price up." Another said: "My husband and I, along with our two young daughters, have been knocked back on two properties due to higher offers from people over east wanting to use these properties for Airbnbs/holiday homes."
Impact on School and Workforce
The housing shortage has been linked to declining enrolments at Dwellingup Primary School, threatening its viability, and a lack of workers for local businesses. One submission noted: "The school is always struggling each year to achieve numbers to keep the school open." Another said the school is the heart of the community: "Once that has gone the community will die as the ageing population will not be replaced with a younger generation."
Survey Results
More than half of survey respondents believed there were too many unhosted STRAs, and more than three-quarters said they had negative or mixed impacts. Some submissions called for purpose-built STRA or a complete ban, while others supported STRAs as they believed the town's future lies in tourism. One submission stated: "Short-term holiday rentals directly increase tourist spending because they enable visitors to stay longer, travel in groups and spend more locally."
As of April, there were 104 properties in the shire listed on the State Government's STRA register, with 29 hosted and 75 unhosted. The council voted unanimously on April 23 to release the draft policy for comment. Deputy shire president Ange Rogers said the targeted survey of Dwellingup was the right choice, as it received more submissions and will lead to a better outcome.



