Rural properties will not require planning permission for holiday home rentals after all, under revised legislation published by the government.
The EU Commission had initially expressed concerns about the Irish Government’s regulation of short terms rentals which required planning permission for all rental homes, including pre-existing holiday homes and properties let by Airbnb and Vrbo, questioning their compatibility the internal market.
In response, the Government revised its proposals, so only urban properties need apply for planning permission for short term rentals.
Planning permission is already required by holiday rentals in rent pressure zones. The position of long standing holiday home rentals in urban areas remains unclear.
Holiday home rental associates have lobbied that the sector is being scapegoated for failures in other areas and curtailing short term holiday rentals does not help solve problems in housing supply. In cities such as Dublin, curtailing short term rentals puts pressure back on hotel supply.
The new regulations will require all short-term rentals to register on a new platform overseen by Fáilte Ireland, allowing local authorities to monitor compliance with planning permission requirements.
Currently 6,000 short term rental properties are registered. The number could expand to over 35,000 under the new legislation. Fáilte Ireland says it is ready to go with the new register and is awaiting legislation.
This delay caused the implementation of the restrictions to be pushed back, and it is now expected to be in place by next summer rather than the earlier target of the first quarter of the year.
The Government hopes that this will be the final delay, as a provisional agreement has been reached between the European Parliament and European Council.
The EU Commission is anticipated to formally approve the revised proposals in the coming weeks, removing the standstill on the Government’s plans.
Additionally, the softening of rules for rural properties is part of broader planning guidelines to be published by the end of the year or early next year, aiming to reintroduce 12,000 properties into the long-term rental market. Officials believe that holiday homes in rural areas do not significantly impact rent prices and are not suitable for long-term renting.
Viktorija Molnar of the European Holiday Home Association told last week’s conference of the Irish Self Catering Federation that the tool was an EU initiative aimed at preventing barriers in the single market before they arise. Ireland proposed a draft law to establish a register as part of this tool.
“The European Commission received the proposed act and assessed its compliance with existing EU laws. They found some issues that didn’t align with EU regulations.
The notification procedure for the Irish law was halted because a regulation on short rental data collection and sharing is expected to be adopted in December. Member states will need to create registration schemes complying with the criteria outlined in this regulation.
The idea behind the regulation is to harmonise data collection practices across member states, ensuring transparency and preventing discrimination. It is hoped that once member states have access to the data, they can create proportionate, justified, and non-discriminatory laws at the national level. However, there are concerns about the handling and flow of data.”
