‘No rift over tourism rentals’ – Coalition plays down reports of disagreement on controversial legislation

Fine Gael and Fianna Fáil have clashed over the details of short term letting rules within the coalition.
The government increased the population threshold for restrictions from 10,000 to 20,000 residents.
This change reduced the number of affected towns to around 39.
Operators will have up to two years to secure planning permission in regulated areas.
New registration requirements with Fáilte Ireland will start from 20 May 2026 for short stays of 21 nights or less.

Fine Gael and Fianna Fáil have expressed disagreement over aspects of the proposed short term letting legislation that aims to regulate tourism rentals in Ireland.

New rules are scheduled apply from 20 May 2026 and hosts offering accommodation for 21 nights or less must register with Fáilte Ireland.

The coalition partners have clashed on the details of planning requirements and the population threshold for towns where new short term lets would face restrictions. Fine Gael has pushed for measures that protect tourism in certain areas while Fianna Fáil has raised concerns about impacts on local economies and existing operators.

The government raised the population threshold for the application of stricter rules from 10,000 to 20,000 residents which reduced the number of affected towns from over 60 to around 39. Operators in qualifying areas will have up to two years to obtain planning permission and those active for seven years or more may qualify for grandfather regularisation.

The Short Term Letting and Tourism Bill has faced delays in its progress through the Oireachtas as the two parties have negotiated adjustments to balance housing supply goals with tourism needs. Existing short term rental operators in smaller towns and rural areas continue to operate without the new planning restrictions under the revised approach.

A government spokesperson shared “there is no row as the parties work through coalition negotiations on housing policy”.

Peter Burke shared “the housing crisis is concentrated in areas with populations above 20,000 and applying restrictions to smaller towns could harm local economies”.