What’s happening to Airbnb and holiday lets?

There are 30,000 properties in Ireland on offer online to holidaymakers, according to the Government. Airbnb accounts for about half of such bookings globally in properties ranging from a room in a family home to granny flats, glamping, converted barns and entire homes.

Rules in place for five years already require homeowners in rent pressure zones – of which there are 60 covering most urban and some other areas – to seek planning permission if renting out their family home for more than 90 days a year, or a second home for any period of time to short-term tenants

In its ongoing efforts to address the housing crisis, the Government thinks more could be done to bring as many as 12,000 of the 30,000 short-term lets into the long-term residential market.

[ Airbnb urges State not to drag all short-term holiday lets into planning systemOpens in new window ]

So, what is the Government doing?

The Government has a two-pronged plan under proposed new legislation. First, all short-term accommodation will have to be registered with Fáilte Ireland. Failure to do so will mean fines for the property owner and the online platform – ranging from €300 to as much as €5,000. Pretty much everyone in the industry appears to support this move.

In addition, there will be new, tighter planning restrictions.

What new planning restrictions?

That’s the thing. No one knows, which is doing nothing to soothe worried folk up and down the State who augment their family income with holiday lets. People traditionally book this accommodation well ahead of time and Airbnb and others say landlords signing up guests now are in the dark as to whether they will actually be able to host them. The uncertainty has been going on for two years with legislation initially due to be in place back in September 2022.

Why the delay if the housing crisis is so urgent?

The Government ran into trouble with the European Commission which felt some of its proposals ran counter to EU law. The Government is happy these issues are now resolved, though further correspondence will take place through a system known as the TRIS notification process as the Bill progresses.

Why the secrecy on the planning rules?

That’s a mystery. For sure, the tourism industry, no doubt including Airbnb, has and will lobby hard against restrictions on providing tourist accommodation but it is unusual not to consult stakeholders when drawing up legislation, especially where it could prove contentious.

[ In the dark on plans for short-term lettingOpens in new window ]

Has this worked elsewhere?

There is a lot of focus on tighter regulation of short-term lets worldwide. Barcelona last month announced a ban from 2028. New York and Scotland are among other locations that have recently tightened rules. In New York, it has led to a rise in hotel rates and Airbnb says the same is now happening in Scotland.