The Government has obtained permission to move forward with implementing fresh regulations pertaining to short-term property rentals. They hope this initiative could potentially free up numerous homes for the private rental market.
The Cabinet Committee on Housing gathered late in the previous week. There, it was conveyed to the ministers that the revised Short-Term Tourist Letting Bill will be introduced to the Cabinet on the 11th of June, after months of consultation with the European Commission.
There were initial concerns raised by the commission that the suggested legislation might violate European law. To address this, Housing Minister Darragh O’Brien and representatives from the Department of Tourism had a dialogue with the commission last December and again this February.
According to a high-level government source, the matters have finally been settled and the go-ahead has been given to continue with the project, despite the expectation of more communication with the EU after the Cabinet gets hold of the bill.
Post the approval of the legislation by the Cabinet, Mr O’Brien and Tourism Minister Catherine Martin will correspond with the commission through what’s known as the TRIS notification process to update them on the bill’s progress. Additionally, ministers will get the opportunity this week to give their comments on the plan as part of the upcoming Cabinet memo.
Sources confirmed that the new bill had to be compatible with a new EU Short Term Rental Regulation law, which is reportedly 95 per cent complete.
The scheme to restrict short-term rentals would mean homeowners couldn’t list a property on such platforms without a registration number. It is intended that this regulation could potentially shift as many as 12,000 properties from the short-term rental sector to long-term rentals.
As part of the scheme, homeowners providing accommodation for periods of up to and including 21 nights should be registered with Fáilte Ireland. The tourism agency will keep a check on online platforms to ensure properties advertised are registered properly.
Fáilte Ireland will employ 10 individuals to ensure that websites are adhering to registration regulations. Property owners who fail to advertise their property with a valid registration number may be penalised with a €300 fee. Should property owners or online platforms violate the newly implemented short-term letting regulations, they could incur fines up to €5,000.
Previously, there has been growing worry over the quantity of properties being rented to tourists. Some homeowners utilise this as a means to earn additional income by renting out spare rooms, whereas others rent out entire properties, which often generates more profit than traditional long-term rentals.
A “clarification period” of six months will be initiated, providing property owners with the time to apply for change-of-use planning permission. This will mean they can continue to rent their properties to tourists whilst their application is under consideration. Local authorities will also receive planning guidelines to coincide with the new legislation’s implementation.
The European Commission expressed concerns in a letter to the Irish Government in February. It stated that sections of the 2022 draft Short-Term Tourist Letting Bill may infringe upon EU laws, which safeguard the ability to offer online services throughout the European Single Market. Last week, Ministers were updated at a Cabinet committee meeting on recent efforts to align Irish laws with European legislation. It was reported that the EU Commission has responded favourably to the progress made.