The Government has been grappling with the challenge of finding a balance in its short-term letting sector, tasked with weighing the importance of a thriving tourism industry against a pressing housing crisis that has become a significant concern despite multiple attempted interventions. This issue is not confined to Ireland. Many countries are seeking to adjust their approach to this sector, with the belief that from the approximately 30,000 properties listed on various holiday letting services like Airbnb, Booking.com and Expedia, as many as 12,000 could be suitable for longer-term tenancies.
The dilemma is how to make these properties accessible for longer-term rental.
The existing regulations for properties within the expanding range of rent pressure zones are quite stringent. Since 2019, those owning property in any of the 60 designated areas throughout the country and renting them out for periods of up to 14 days, or in the case of their homes, over 90 days annually, must have planning permission.
The Government is now proposing new laws that will introduce a compulsory national digital registration system for all short-term rentals, complimented by stricter planning regulations that all potential short-term landlords must adhere to.
This proposed registration system has received widespread approval across the sector, underpinned by the belief it will offer greater transparency.
However, there is increasing alarm about the possible implications of any new planning regulations, a concern which has been accentuated by the Government’s confidentiality regarding their specifics.
Industry bodies such as Airbnb contend that any new planning regulations must be appropriately tailored to account for the variations between different rural areas without substantial housing pressures, and those which are more bustling — places like Kinsale and Killarney.
New regulations must also recognise the difference between properties that can realistically be included in the long-term rental market, and those (like family holiday homes) that are not suitable for long-term rental but offer valuable accommodation options for tourists.
The government’s strategy of withholding information regarding a policy that is bound to reduce the earnings of some property owners appears bizarre if they’re seeking their acceptance. If the government is confident about the appropriateness of these new regulations, there’s no reason not to make them public and give landlords an opportunity to prepare. If, on the contrary, these proposals are severely flawed, the least they can do is offer a chance for meaningful consultation, which should have been initiated long ago considering that these plans have been in the pipeline for over two years.