The likelihood of Tasmanian rents further increasing after pandemic impacts settle down is seen as a major concern in a new report by Shelter Tasmania.

The report finds that a rise in the short-term holiday rental market resulted in fewer long-term private rental properties, which cut rental housing stocks and increased rents.

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Looking at bond registrations, between 2016 and 2021 the Launceston private rental market lost 404 properties while the short-term rental market gained 340 properties, and in Devonport 106 long-term rentals were lost while an extra 29 short-term rentals hit the market.

Since that time rents have risen by 49 per cent in Launceston and 27 per cent in the North West.

The report states that even small changes in the number of rental property leads to significant impacts on rent prices, a fact highlighted by the Australian Housing and Urban Research Institute which found that rents decreased by 9 per cent when 100 properties were returned to private rentals.

Its suggested solutions include limiting the number of STR properties, imposing extra local government charges on STR owners to account for the associated increased costs, increased monitoring, as well as increased support to expand the private rental market.

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Greens leader Cassy O'Connor said the Liberals have been refusing to acknowledge the impacts of short-term accommodation and the Shelter Tas report highlighted a need to introduce limits.

"Their failure to regulate limits on short-stay has fuelled the housing crisis, pushing more Tasmanians into financial hardship and towards homelessness," she said.

"While the situation is bad now, it has the potential to get even worse unless the Rockliff government intervenes. We need to see immediate action to tackle the proliferation of whole-of-home short-stay accommodation.

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"It's time for Premier Rockliff to step in, and to act in the best interests of the thousands of Tasmanians who are unable to find an affordable, secure place to call home."

The report was commissioned by Shelter Tas and produced by Emeritus Professor Peter Phibbs, and is the first in a three-year project.

Future reports will deliver 'real-time' snapshots of the short-term rental market.

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