David Murray of the housing department told the annual conference of the Irish Self Catering Federation that more transparency was needed in the short-term rental market in Ireland, and said challenges arose from inadequate data that hinder local authorities’ assessment of planning applications.
Mr Murray said self catering properties operating outside of the planning permission, some for many years are not going to receive an exemption from new restrictions.
Moderator Eoghan Corry raised concerns about the grandfathering of existing properties during a discussion on the revision of short-term rental legislation, highlighting issues with the previous rent pressure zones approach. A subsequent discussion involved Charlie Reith (Expedia)), Derek Nolan (AirBnb Public Policy) and Derek Keogh of the ISCF.
Mr Murray confirmed that a new planning bill was adopted in October, representing the first major update in 20 years, which continues the rent pressure zone provisions from the 2000 legislation through to 2024.
Murray clarified that there is no intention to provide amnesty for existing residential properties used as short-term rentals, provided they have the necessary planning permissions.
He emphasised that individuals without planning permission must take steps to obtain it, reiterating the importance of compliance within the evolving regulatory landscape for short-term rentals.
Mr Murray emphasized the importance of tailored policy responses to address the housing needs in both urban and rural areas, encouraging engagement with local communities for effective housing provision strategies.
The introduction of new legislation aims to enhance data availability, allowing local authorities to make informed decisions and aligning with the “Housing for All” initiative to accurately track short-term tourism lettings across the country.
Future planning guidelines, set for public consultation, will involve feedback from stakeholders, including organizations like the ISCF, to create a balanced approach towards integrating short-term rentals while sustaining vibrant communities and addressing housing demands.
David Murray, told the conference: the rapid growth of this market has brought certain challenges. One of the overarching challenges specifically here in Ireland is the lack of transparency due to the limited data on this market and locational data, which impedes local authorities’ abilities to assess planning applications consistently. It also affects the Department of Housing and the Department of Tourism in effectively developing policy responses to the issue.
A key aspect of the new legislation will be to improve data availability so that policy responses can be more targeted at both the national and local levels. Local authorities and county councils will be better equipped to make decisions based on informed responses that are used for planning purposes. One reason for implementing the register is the commitment in “Housing for All” to provide local authorities with an accurate register of all short-term tourism letting stock across the country. This will give the full picture of this stock and substantially assist all parties in developing tourism policy for a more sustainable short-term rental sector and a balanced tourism ecosystem.
From my experience this morning and hearing the presentations made, it’s clear how important short-term rentals are to these economies. However, it’s also important to recognize the significant housing need that exists throughout the state, not just in urban areas but also in rural areas. Within the Department of Housing, we focus on housing provision in rural and urban settings, including suburban areas. Policy responses are developed by engaging with local communities on specific issues, particularly housing needs. We have released guidelines to address sustainable compact settlements, which emphasize smaller, more compact housing in urban areas suitable for key workers and different types of uses.
It’s not a one-size-fits-all policy approach, and that’s why the data that the register will provide is a very important aspect of this process. In terms of planning comments, it’s been consistently communicated by my predecessor, Terry Sheran, who worked with the ISCF on this. We are developing planning guidelines that will be published as a draft document around the same time as the STL bill. This will be open to a public consultation process, allowing organizations like yours in the ISCF, or any interested parties, to make submissions. We would then take these submissions into account—submissions could be from Booking.com or any other interested party wishing to comment on the draft guidelines.
Communication and dialogue are very important for the development of the draft guidelines and the adoption of any final guidelines. We have been engaging so far through meetings with the Minister of State for Local Government and the Minister for Housing. I know we have also engaged with the Department of Tourism and the ISF to ensure a consistent ongoing process, which is not yet complete. The draft guidelines will allow for further opportunities for people to make submissions and communicate their views, and we will take these comments into consideration.
Regarding other planning aspects that interact with the need for a register, earlier comments highlighted that the original intention for the register was to address the inability of key workers to find accommodation in urban areas. However, key workers also need accommodation in rural areas, too. With those key workers come families—husbands, wives, and children—and it’s about providing housing to accommodate these needs so that people can actively participate in their communities and lives. It’s not solely about economic drivers; it’s about creating and sustaining vibrant communities in both urban and rural areas.
For example, looking at what types of buildings are suitable for long-term rental is part of our open discussions, such as with the Dún Laoghaire-Rathdown County Council, which is doing interesting work on noise identification in the city center. From a planning perspective, we must consider whether noisy areas in the city center are appropriate for long-term residential use. In some instances, short-term rentals may be more suitable due to the reduced amenity provision. We need to balance these considerations, allowing local authorities the flexibility to develop their policy responses.
This is part of an international dialogue at the EU level, particularly related to Agenda 21 and the Aarhus Convention, which sets out that decisions affecting communities must be made with transparency and public participation.
Communication should be made at the community level, which is the local authority. This is where elected members come in; they represent the community’s views and make the development plans used to assess planning applications. The role of the Department’s policy responses is to provide information and direction for local authorities when they are making planning decisions and developing policy responses to issues, such as short-term rentals and their impact on local communities.
In rural areas, for example, we must consider the visual capacity for additional development. Is the use of existing housing for short-term rentals driving up the demand for new housing? Can the area accommodate that? Will it have a visual impact? Are there issues related to traffic hazards or environmental carrying capacity? All these matters will be considered individually, and they will be flagged as part of the guidelines.
Overarching all of this is the acknowledgment that short-term rentals play an important role in providing for a diversified economy, especially in rural areas, to help augment farm incomes where necessary. However, local policy responses are best addressed by the elected members of local authorities, and planners are well-positioned to respond by taking direction from their development plans and national guidance.
Moderator Eoghan Corry: One issue that keeps arising is the grandfathering of existing properties. The experience with rent pressure zones was that it was a very blunt process. What is the current status of this in the ongoing revision of legislation? Is it being acknowledged, or is there any indication of it throughout the process at the moment?
David Murray: Recently, a new planning bill was adopted into law in October of this year, marking a significant update— the first in 20 years. This process has carried on the rent pressure zone provisions from the act of 2000 into the act of 2024. As such, these provisions remain in place. There is no legislative intention to change the law to reflect a desire for an amnesty for existing residential properties that might be used for short-term rentals if they have their planning permissions in place. If they do not have planning permission, it is a different issue; people without planning permission should seek to obtain it.
Eoghan Corry: Derek, what are your thoughts on that? We’re not going to blame the messenger;
Derek Keogh ISCF: I understand that there may be different perspectives on this issue. It goes back to the scenario after the 1950s, where rural areas were taking in traveling salesmen and others who used a couple of their bedrooms to supplement their family income. This was a way to bring more money to the table, and at that time, the government needed to address this situation. The solution they implemented was a planning solution, allowing homeowners with principal residences and additional bedrooms to use them for short-term rentals, like bed and breakfast establishments. This was a proactive government response to the issue, handled locally.
If I understand what David is saying, there is a process by which submissions can be made, and then a draft of the legislation can be published for further consultation. It’s important to clarify that these are draft guidelines issued by the minister, which carry legal standing. Local authorities must take these guidelines into account when making their development plans or planning decisions. They sit beneath the actual legislation, which sets out the law. The minister can make policy decisions based on these guidelines, and that will be part of the draft.
Eoghan Corry: Is there a timeline for this, or is it affected by political events?
David Murray: The commitment has always been to publish these guidelines simultaneously with the draft HDL bill. As for the main point here, the consultation process is ongoing. Even though the guidelines have legal status, they are not yet finalized; they are in draft form rather than officially enacted. Local authorities are currently engaged in the process of drafting these guidelines. For example, Jim P’s recent report, which Mora has sent on, includes information we will consider.
The process involves interaction with stakeholders, which has been ongoing and will continue even after the guidelines are published due to the public consultation process. There will be further opportunities for engagement at that time. There are certain aspects I can’t discuss here, as changing legislation isn’t within my purview. However, the guidelines from the ministry can provide direction to planning authorities regarding how to assess planning applications and what factors they need to consider, such as the diversification of the rural economy and whether particular buildings are appropriate for long-term rental accommodations in the first place.
Matters that might be more local to the area could indicate that a short-term rental is the most appropriate use for a particular building. We will address all of these considerations.
Eoghan Corry: I want to bring in Charlie from Vero and Derek from Airbnb to join the discussion because I’m sure they have strong opinions. Much of the public commentary, as well as my own profession as a journalist, often highlights Airbnb in discussions. Charlie, you’ve observed this happening in different legislatures. Do you see any patterns, and do you anticipate any changes in those patterns? It seems that a fairly blunt instrument has been used to target short-term rentals.
Charlie Reith: Thanks very much. I work for Expedia Group, which includes Vrbo. In my role in government affairs, I cover a wide range of policy areas that affect tourism, and I’m lobbying in Westminster. I am based in London, but my remit includes the UK, Ireland, the Nordics, and Brussels as well. Of all the issues I cover, short-term rentals take up about 80% of my time because it’s such an active political area. This has become a political issue in many markets.
In Ireland, it is also a politicized issue, especially now that we’re in election mode. There are some hopeful signs, though. We support the EU’s efforts to harmonize the various regulations among member states. It’s important not to underestimate the value of having some consistency among requirements in different locations. For a global business like ours, that consistency is incredibly useful, and I know it’s beneficial for our partners as well. So, I would say there is some optimism, but the housing crisis in Ireland and the specific issues it presents cannot be overlooked.
Eoghan Corry: Derek, you’ve experienced this from both sides—being in the Dáil and lobbying. You’ve noticed that Airbnb is mentioned in nearly every media report on this issue. What are your thoughts?
Derek Nolan: First of all, I think it’s great that David was able to be here today, and I want to thank him for coming along. David has significant expertise and will be a crucial part of solving this problem. There’s a broad range of constituents we need to address when discussing this matter. Planning is one aspect, tourism is another, and we often hear about planning primarily through the lens of housing, rather than balancing the tourism element.
The political system recognizes there’s a problem, but they are unsure how to address it. In some ways, they are trying to design a new industry while navigating this complex landscape.
When there’s an existing industry already in place, determining how to deal with both the current system and the new one they want to implement through planning is proving to be quite challenging. I believe this is why we haven’t seen much progress in recent times. There are really difficult issues to solve—it’s fair to say that.
There are a few things to consider: first, we have large urban areas where the policy outcome is very restrictive. Then, in rural areas, there’s a push for more flexibility. You’ll find major pinch points in tourist towns like Westport, Canal, and Kilkenny. The question is, what do we do there? There will be winners and losers, and that’s where it becomes particularly tricky.
For example, if we assume there are 200 short-term rentals in Westport, how many do we want to allow? If we decide on a figure—let’s say 100—then we face the hard question of which 100 will be shut down. Who wins, and who loses? These are really complicated questions, and we’re going to have to face that reality.
Moreover, when discussing the planning system, it’s important to note that if someone receives planning permission for a short-term rental, that permission doesn’t just last for 5 or 10 years; it’s attached to the property forever. If that property can facilitate short-term rentals, it may have increased by 40% in value. This situation creates a lot of complications, as the property can then be sold to someone else who can also continue to operate it as a short-term rental.
As I’ve mentioned to various ministers and at the Oireachtas meetings, we really need to sit down and discuss what type of short-term rental system and structure we actually want. There’s been a lot of discussion about what we don’t want, but we need a clear vision for moving forward. Everyone involved should be present to hash out these thorny issues. I don’t think that, despite the external pressures, David alone can fix this. He is one important part of a much larger system that needs to address this complicated, potentially dangerous issue.
There’s a significant amount of work to be done, and all sides need to acknowledge this. Unfortunately, the political system has not been forthcoming with this acknowledgment. We keep hearing that the planning guidelines are coming and that it will be easy, but it won’t be easy.
Eoghan Corry: You’ve participated in the Oireachtas committee and made good representations there. I imagine you agree that politicians are likely to shy away from this issue. Who is going to step in to provide a solution? Who will define the rental properties that need special status within the planning process? It feels like there needs to be some sort of exemption to ensure they are not subject to the same regulations that apply to, say, someone building an extension on their house. Who will take the lead in this endeavour?
To figure out what to do in Ireland, will it involve handing over the responsibility to an external agency or a super infrastructure supervisor? What solutions do you see from your perspective, given that you’ve been dealing with this issue for a long time?
Derek Nolan: I think there are two potential paths for this situation. One is that it could end in a crash, which would be undesirable. Let me rephrase that: if we don’t do the hard work necessary to establish how this is going to work here—conducting case studies, understanding the impacts, and engaging with stakeholders—then we will face significant problems. We should do that work in advance in a calm and steady manner, where we get into a room, have discussions, and engage without disruptions from the political system.
I believe there is a strong need for more data. I found Jim Power’s report to be really useful. We’ve produced reports from Oxford Economics over the past year to highlight the industry’s current status and the jobs at risk. We also have another report coming out EU-wide with a chapter focused on Ireland, which should contribute to the debate. I believe this issue is solvable, but it can’t be done without involving politicians because it is inherently political.
The difficulty arises every time you make a statement; it often ends up as front-page news. The media plays a significant role in this. Since I started working in this space, I’ve never made the front page of the Irish Independent, but the scrutiny makes it difficult to have a constructive conversation. The political system needs to find a way to manage this.
Eoghan Corry: Now, do you want to come in on this?
David Murray: One of the solutions we proposed is called TANs, which stands for Tourist Accommodation Networks. What we’re suggesting is that there should be a clear distinction between genuine tourist operators and latecomers to the market who may be undermining the hospitality industry.
One way to approach this is to leverage existing quality assurance schemes in Ireland and our own Patron scheme. We want to ensure that long-standing operators who have been in business for 25 or 30 years but may not have the proper planning permissions are not unfairly shut down if the legislation passes without clear guidelines. Otherwise, everyone could be adversely affected, and that has happened before.
The grandfathering process, specifically the seven-year rule, is a term used in existing planning legislation. One important point I want to clarify is that the introduction of what is contained within the STL Bill will not change planning legislation; it doesn’t modify existing planning laws. The planning legislation that is now part of the new 2024 Act will remain intact.
The seven-year rule essentially means that a local authority is precluded from taking enforcement action against someone who does not have planning permission, provided their use or building has been in operation for seven years or more. However, this does not mean that their situation is authorized or has been granted de facto approved status. It simply means that the local authority cannot initiate enforcement actions through the courts against that individual for the period they have been operating without permission.
Eoghan Corry: This situation often surfaces during property sales.
Derek Nolan: There are many ways to interact with this rule, but the key point is that the seven-year rule remains a fundamental aspect of planning law. Regarding how planning legislation is structured, an inspector prepares a report for consideration by the board members in An Bord Pleanála. While they make the final planning decision, they may choose to consider additional information or factors that the planning inspector did not take into account, allowing them to make a decision contrary to the inspector’s findings and provide reasons for their decision.
Speaker: I apologize if I’m not being clear. In our case, for instance, we can prove that we have been operating for the seven-year period. I think our council is forming strategies regarding continuous short-term rentals.
David Murray: In terms of planning legislation, I won’t comment on any specific cases, especially those currently before the board. However, I will say that the planning legislation remains the same. If you are in a rent pressure zone (RPZ) and operating a short-term rental without it being your principal private residence, you need planning permission, unless you are benefiting from some kind of exemption. That remains a fundamental aspect of it.
The guidelines aim to provide clarity on what is happening in rural areas and how to handle upcoming planning permissions and Section 5 queries. This area of legislation has evolved, but when a planning authority questions whether planning permission is required, the guidelines will help determine what needs to be considered and if a planning application is necessary.
These guidelines won’t delve into specifics but will instead provide an overarching set of principles for local authorities to apply in relation to local matters. For example, in the Kerry Peninsula, the authority might feel there isn’t a strong housing need, or they may decide a particular building is appropriate for short-term rental. Local authorities are the best arbiters because they are knowledgeable about planning matters in their region. Local councillors create development plans that allow the council to make decisions based on the guidelines.
Eoghan Corry: It may seem like there’s a lot of bureaucracy involved, but the essence of this is that planning decisions must be made at the local level to affect the people involved.
David Murray: Granting permission for someone to operate a business on their land is a significant decision, and if permission is denied, there must be valid reasons for it. These decisions are important and should be made at the level closest to the applicants.
Eoghan Corry: Thank you very much, David.
Derek Nolan: Regarding the question of an amnesty, it doesn’t appear to be a feasible option in the current environment. I understand you are working within the legislation that is moving through, but it doesn’t seem likely to happen. If it were to occur, it would have to come from a political decision at a higher level. Something that David cannot offer.
Eoghan Corry: that’s acknowledged.
Derek Nolan: Yes, absolutely. Okay, on that happy note—or perhaps unhappy note—thank you very much to our speakers. Is there anyone else who would like to comment? I see someone down there who wants to speak. You can probably be heard.
Speaker: Yes, I have a hypothetical situation regarding planning. If I have a property operating as self-catering accommodation and I’ve been doing so for more than seven years, but I’m required to have planning permission in that particular area, if I apply for planning permission, I take it I can be refused. If I don’t apply, then the council cannot shut me down?
Eoghan Corry: That’s very interesting; it definitely draws attention. I can take another question because we have a couple of people to finish with. I’m really conscious that David is here—it’s wonderful that you’re here, and that seat must be quite hot!
Speaker: So far, everyone in this room has engaged in this conversation. I don’t want to spend too long on this, but since I’ve been involved in rural development and diversification with community individuals since the mid-90s, my concern is the consequences here. Many of these people diversified for very good reasons and were supported. Many of them approached their planning authorities while converting buildings and were told at the time there was no category for accommodation. They have always been registered within this framework.
If some of these places are closed down, that housing stock is not going to become available to the public. A lot of these properties have family connections. What will probably happen is that they may go to a family member, who might use it as a holiday home occasionally. They may end up being left semi-derelict, or they may just go into the black market. In many cases, this will not, from a rural perspective—no offense to my city colleagues—add to the local housing stock.
People are looking to make more money, but they also want to retain more control over the challenges they face with their properties.
Eoghan Corry: Derek, as someone who knows your way through the planning system and has engaged in this domain, what’s your feeling on the state of planning and the ability of politicians to move forward on these issues?
Derek Nolan: I mean, that’s not an easy question. What I would say is that I don’t think we have fully addressed some of the thorny issues we need to work through. One of the big ones draws attention to yourself—why apply? But there are two separate things happening here, even though they are interconnected.
Firstly, there’s the registration system. This system is distinct from planning; it’s essentially about who you are, where you are, and what you’re doing—essentially, it’s a registration process. It has nothing to do with planning. The second aspect is that the planning guidelines should determine who can and cannot be on that register.
The first point is something the political system is somewhat aware of, but they lack detailed knowledge because they haven’t seen the legislation related to it yet. The legislation is under the purview of the Tourism Committee. The second part, which relates to planning, hasn’t been published yet and remains pending until the legislation is finalized. Therefore, we are in a sort of limbo, waiting for this mysterious new piece of information that none of us have seen. This is why the political system doesn’t have much clarity about these issues and is asking us to wait. Many of these matters won’t be fully explored until we reach that point.
We have a choice: do we address this in a slow, methodical, and comprehensive way, so we understand the implications? There will be things that people in the room and within the industry will want, which may fall outside of the planning system. For example, if people wish to pursue a grandfather clause, that would require new legislation or some other form of instrument to implement it.
So, we face a decision: do we proceed comprehensively and deliberately, or do we rush through this process, which could lead to significant problems? I think there is goodwill within the political system, and I must commend the organization for their efforts in communicating these concerns. The concerns have been raised, but what is still missing is a clear understanding of possible solutions. Until we see the planning guidelines and the conversation starts to sharpen, we won’t know where this is headed.
I personally believe there is a way to resolve this that would benefit everyone. The public perceives this situation as an uncontrolled industry where anyone can come in, do as they please, and take properties off the market. The public won’t support that kind of industry, nor should they. We need a regulated industry, but we must find regulations that work without throwing the baby out with the bathwater.
Ireland simply cannot afford to lose the bed capacity that exists in the short-term rental market right now. We’re already at a significant disadvantage, and as you all know, the market has changed. People want short-term rentals, and it’s important that we address this properly.
They’re looking for accommodations that function like a hotel or short-term rental. Families want rooms for their kids, kitchen facilities, and space for grandparents to holiday together. Family time is essential; it’s not just about everyone staying in hotels. If they don’t find what they need here, they will go elsewhere, like Fiona in Scotland or Northern England, according to our data. People who were initially planning to visit Scotland may end up in Northern England if the available accommodations meet their family needs. Thus, it’s crucial that we address this effectively; we have to ensure that we don’t throw the baby out with the bathwater.
Charlie Reith: I completely agree. I want to build on Derek’s point. The critical element is the drafting of the guidelines, and I’m pleased to hear that there will be a consultation process for addressing these issues. The registration scheme is fundamental because it allows us to “stand up and be counted.” However, if the registration scheme becomes a tool that restricts the sector, that wouldn’t make sense. We need to gather evidence first, and on that basis, we can implement policies to manage issues where they exist. We all know we have to balance different considerations. No one in this room is unaware that action may need to be taken in certain areas, but the key is to approach this in a methodical and evidence-based way while bringing the whole industry along with us. I believe there is an appetite for this in the sector.
Eoghan Corry: David, do you have any advice on engaging with this process and addressing the concerns shared here?
David: Murray: I would say that we have been actively meeting with the Department of Housing, the Department of Tourism, and various representative bodies on these issues. There has been engagement, and as I mentioned earlier, we are open to continuing that dialogue. We will analyse the information in the reports, and once the guidelines are published in draft form, there will be a further public consultation period. It’s important to take advantage of that opportunity.
Eoghan Corry: Thank you all for the great discussion, and thanks to the audience for your involvement.
