Calls for tourism rental moratorium as government shifts population threshold but NOT threat to sector

The Irish Government has confirmed a significant revision to its short-term letting regulations, raising the population threshold for towns requiring planning permissions for such accommodations from 10,000 to 20,000 residents, 

Although the change affects just 26 towns a significant decision has been made to allow a grandfather rule for properties that are in use for more than seven years. Meanwhile an exceptions register of 900 properties, mainly heritage billings, has been drawn up by Irish Self Catering Federation.

Tourism Minister Peter Burke announced the Cabinet-approved change, aimed at safeguarding rural tourism, claiming this addresses the need to strike a balance between maintaining tourism capacity in areas where new hotel developments are economically unfeasible.

Under the proposals:

• From May 2026, all short-term rentals must be registered with Fáilte Ireland.
• In Rent Pressure Zones (RPZs), renting out an entire primary residence is capped at 90 days per year; exceeding this requires planning permission.
• The new law requires registration for any short-term letting of 21 nights or less.
• Stricter rules apply to non-primary residences, which require planning permission for short-term letting.
• Online platforms (Airbnb, Booking.com) face fines of up to 2% of turnover for listing unregistered properties.

The Irish Self-Catering Federation, which has long criticised the original proposals as ‘wrong and unfair’ for scapegoating the sector and threatening rural jobs and the 40 pc of tourism beds provided by self-catering units. Few of the ISCF members have planning permission as it is not required under current legislation, and it is unclear if they can take bookings after the threshold date. 

ISCF CEO Máire ní Mhurchú highlighted the unachievability of prior plans due to planning delays and staff shortages in local councils, warning of a potential 6pc drop in tourism revenue if the restirictions go ahead as planned. 

The updated rules, set to take effect from May 2026, will mandate that property owners in towns exceeding 20,000 inhabitants obtain change-of-use planning permission if they intend to rent out entire homes for more than 90 days annually or for stays of 21 nights or fewer without proper registration through Fáilte Ireland. 

Platforms such as Airbnb will be required to provide monthly reports on host details and letting activities in these regulated zones, with potential fines reaching into the tens of thousands of euros for non-compliance. 

This adjustment follows months of debate, including pushback from rural politicians concerned about the impact on local economies, and comes after an initial proposal last year that targeted smaller towns amid Ireland’s ongoing housing crisis. 

For Airbnb and the broader short-term letting sector, the higher threshold means fewer properties will fall under the stricter regime, potentially allowing thousands of listings in mid-sized towns to continue operating without additional bureaucratic hurdles, thereby preserving revenue streams estimated at over €500m annually from tourism spending. 

In the five major cities where over half of Ireland’s short-term lets are concentrated, the regulations are expected 

The Irish Tourism Industry Confederation welcomed it as progress but called for greater clarity to reduce ongoing uncertainty in the sector. ITIC is asking for a planning maratorium of nine months for tourism rental properties in rural areas to get through the summer.

The move is conceived on the premise that banning short term tourism lets will free up properties for long-term rentals in larger population centres.

Lobbyists claim that curtailing tourism will push a substantial number, potentially up to 12,000 units, back into the long-term rental market but international evidence suggests this figure is optimistic and  cities like Valenica and Almeria have rowed back on their effort to push tourism rentals into the long term market after a dramatic fall in tourism beds without any impact on long term rentals.  

Opposition parties have taken a hard line stance against tourism rentals, have lambasted the decision as a capitulation to lobbying interests, with Labour’s Conor Sheehan describing it as a ‘rowing back’ on already insufficient protections for renters, driven by political expediency rather than housing needs. 

Social Democrats Senator Patricia Stephenson echoed this sentiment, calling the change a ‘disaster’ that guts the legislation and favours figures like the Healy-Raes over those struggling to find affordable homes. 

Sinn Féin’s Eoin Ó Broin labelled it a ‘retrograde step’ that further disadvantages renters.

As the May implementation date approaches there is still no provision for resources to allow owners to regularise their status, stakeholders are hopeful of further consultations or even a task force to oversee the process. Daft.ie and my home.ie are considering pulling out of the short term rental market. AirBnB Ireland has stated it is to consider not taking bookings of less than 22 days unless there are changes to the legislation.

Irish Self-Catering Federation shared: The Irish Self-Catering Federation welcomes the government’s agreement to raise the threshold for self-catering properties in towns with populations of 20,000 and above for tourism lets up to 21 nights. However, this excludes key tourism towns like Kilkenny, Tralee, Ennis, Sligo, Letterkenny, and Mullingar from permitting self-catering. Uncertainty persists regarding the town boundary system and the lack of reliable data on impacted properties due to the absence of a Register for Short-Term Rentals. The federation argues that a blanket restriction based on population size may violate EU law, as it lacks evidence linking short-term rentals to housing pressures.

Referencing the Cali Apartments case, the federation notes that EU regulations require evidence-based, proportionate measures. The Irish approach is criticised for being overly broad without municipality-level data or proof of rent inflation caused by short-term rentals. Additionally, a recent Advocate General opinion in the Smartflats case confirms that short-term rental regulations fall under the EU Services Directive, demanding proportionality, necessity, and transparency. This is relevant to Ireland’s planning permission requirements for continuing short-term rental activities.

There is ongoing confusion about planning for existing self-catering businesses, with the Register for Short-Term Rentals deadline set for May 2026. Fáilte Ireland manages the register, but details on requirements remain unavailable to owners. The Department of Housing has not delivered promised legislation to separate short-term rentals from long-term ones or a National Planning Statement for new developments. This includes provisions for replacing lost self-catering properties and supporting rural glamping.

The federation calls for appearance before the Joint Oireachtas Enterprise, Tourism and Employment Committee, clarity on the register details, and a working group to address planning for existing and new short-term rentals in rural areas. It commits to collaborating with stakeholders to ensure the sector’s sustainability. By fostering clarity and growth, the federation aims to protect rural tourism, owners, guests, and communities.

The change affects just 26 towns