Those operating short-term lets for more than seven years may be given a reprieve from having to obtain planning permission, but will have to show tax compliance for the time they have been in business.
The Department of Housing is developing planning rules to bring tighter regulation into the sector as part of a push to force more homes into the private rental sector.
A planning statement which will outline the new terms that such operators must abide by – with the new rules set to come into force from May 20th this year.
The backbone of the new system will be a new register of short-term let properties, with owners obliged to sign up to the register if they are offering accommodation for 21 nights or less.
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Operators will need to be planning compliant in order to get on to the register, which will in turn be a requirement before offering a property on any of the main platforms, such as Airbnb.
However, this has prompted debate over how to treat the many operators who are offering accommodation without the appropriate planning permission in place, a rule which has rarely been enforced to date.
While no final decisions have been made, it is understood that one option being discussed by officials in the Department of Housing is for a two-year “grace period” for those operating without planning permission in places with a population below 20,000, allowing them to continue operating while looking to get their planning affairs in order.
That population threshold – 20,000 people – is key as after the new regime is introduced, the Government says there will be an effective ban on granting planning permission in towns with a population higher than this.
The thinking is that in such towns, there will be no grace period and they will face an effective cliff edge.
Another element is how to address those who have been operating without planning permission for a long time. Independent TDs, including Minister of State for Agriculture Michael Healy-Rae, have been lobbying for a so-called “grandfathering” of these properties on the basis that planning law deems noncompliance to be unenforceable after seven years.
However, being unenforceable does not mean a property is planning compliant – which is the stipulation for signing up to the register of properties.
It is understood that an option under consideration is allowing such properties to register despite being noncompliant, but that they will have to prove tax compliance during the period of their claimed operation in the sector.
[ Four times more short-term lets than private rentals availableOpens in new window ]
If they are unable to do so, they may find themselves unable to continue operating, with Government sources suggesting this could lead to the migration of a significant number of properties out of short-term letting and back into private rental, or being put up for sale on the open market.
Internal Government documents previously obtained by The Irish Times show that nine out of 10 bookings on short-term platforms were for entire properties rather than for renting a room in someone’s home.
Data in a paper drawn up by the Department of Tourism also show that occupancy rates in the short-term letting sector are low, with analysis of 2024 figures suggesting they range from as low as 3 per cent to a high of 36.2 per cent in properties in Dublin during August of that year.
