It is now illegal for anyone in NSW to leave their own home to stay in an Airbnb or similar short-term letting agency accommodation without a lawful reason, the government has advised.

Under the new coronavirus regulations, no one should be staying anywhere else than in their own permanent home, and they could be fined or imprisoned if they were found to be breaking emergency rules.

The exemptions include if they’re having to stay in short-term accommodation for work, to take care of someone or to stay in one for their education.

NSW Minister for Better Regulation, Kevin Anderson said, “The government advice to prevent the spread of COVID-19 has been very clear – stay in your local area, stay in your home. This is NOT the time to travel or visit family and friends.

“Anyone in NSW who leaves their house without a ‘reasonable excuse’ could spend up to six months in prison and face a fine of up to $11,000 under the emergency ministerial directive.”

His spokesperson said it wasn’t illegal for short-term letting hosts to advertise their properties. He also said he wasn’t aware of backpackers leaving hostels as they closed to take up short-term accommodation.

Earlier, the spokesperson had told Domain it was considered illegal to stay in short-term accommodation because of the law requiring everyone to stay at home, but the government later back pedalled and said there were a number of exemptions to the rule.

Minister Anderson issued a statement on Monday evening that said: “There is no ban on any kind of accommodation.

“The NSW Government advice to prevent the spread of COVID-19 has been very clear. As per the public health orders, people must stay home with the exception of a number of circumstances including work and to provide care.”

“The NSW Government acknowledges that in these circumstances the provision of short-term accommodation is often critical, particularly for our frontline health workers.”

The spokesperson was responding to a question about why the long-awaited, and much-debated, Code of Conduct for the short-term rental accommodation industry was suddenly shelved after it had been scheduled to come into effect on Friday April 10.

The regulation allowing the Code to be established was gazetted on March 16, but it was suddenly withdrawn on April 3, in an extremely unusual move for a Government regulation.

Apartment lobby group the Owners Corporation Network (OCN) said they were alarmed by the move, as the code of conduct was particularly urgent at the time of the COVID-19 emergency.

It would have made it obligatory for short-term let operators to inform apartment buildings where they have units – vital information when short-term renters were using them for self-isolation in the midst of big apartment buildings with lots of common areas.

In addition, the code would have made it obligatory for short-term let landlords to take out public liability insurance for their guests.

“And now they don’t have to, which could leave guests very vulnerable if anything goes wrong,” said Jane Hearn, acting chair of the OCN.

“In a time of a national health crisis, the government is more concerned to protect thousands of illegal listings for units in densely populated apartment buildings, than protecting residents. The failure of NSW to honour its commitment is staggering.”

Short-term letting hosts have countered a sudden loss of business and a 90 per cent cancellation rate by previously advertising properties as “self-isolation packages” and, more recently, as “working from home bases”.

But Mr Anderson said: “The government advice to prevent the spread of COVID-19 has been very clear – stay in your local area, stay in your home. This is NOT the time to travel or visit family and friends.

“Anyone in NSW who leaves their house without a ‘reasonable excuse’ could spend up to six months in prison and face a fine of up to $11,000 under the emergency ministerial directive.”

In addition, OCN claims there is a direct correlation between the areas of Sydney hardest hit by the coronavirus and those where short-term letting is most prevalent, including Bondi, the Northern Beaches and Sydney city.

“If they are closing backpacker hostels, the question is, where are those people now going to?” asked Ms Hearn. “If they are going to deal with transient movements, they’re going to have to confront the issue of Airbnb and other short-term letting apps.”

Independent MP Alex Greenwich, who has been active around the issues of short-term letting, said he found the current confusion around the postponement of the code and the issue of staying in buildings short-term worrying.

“I think it’s important for the government to provide clarity to people living in apartments about what their rights and responsibilities are,” he said.

The other amendments to strata legislation will commence as planned on April 10.

Mr Anderson said: “This will enable the development of by-laws that prohibit short-term rentals where the lot is not the principal place of residence for the host.”