Haggling over a “grandfathering” clause for long-time Airbnb operators has bogged down efforts to reform the sector.
The Government is working on a two-step approach to bring in a new regime overseeing short-term lets.
The Department of Housing is producing a national planning statement (NPS) to frame how local authorities should deal with planning applications, while the Department of Enterprise is bringing in legislation – the Short Term Letting and Tourism Bill – to introduce a new register for operators.
Within that approach, there has been extensive back-and-forth between the two departments over how to handle operators who do not have planning permission.
RM Block
A two-year grace period has been agreed for those without planning operating in towns with a population of less than 20,000. However, an initial plan on this front was revised and is now being included in the legislation. Also, there is still no final agreement on the treatment of long-term operators who don’t have planning.
A “grandfathering” approach to allow these people – operating for more than seven years – to continue operating on an administrative basis was suggested by the Department of Housing, but their counterparts in Enterprise sought another methodology, which is now being discussed with the Attorney General.
Amid a lengthy back-and-forth, sources in Fianna Fáil and Fine Gael were pointing the finger of blame for the delay at their Coalition partners. On the Department of Housing side, sources suggest the Fine Gael-run Department of Enterprise is shifting the goalposts, while sources in that party say what was initially suggested was not fit for purpose and doesn’t match what was agreed politically.
Longer-term operators without planning permission may still need to get retention permission or show tax compliance to get on the register – without being put on it, they will effectively not be able to rent their properties on the main short-term letting platforms.
[ Airbnb-style operators renting for over seven years may get planning reprieveOpens in new window ]
There is effectively no hope of the system being ready for a deadline of May 20th, with expectations now that the planning statement and legislation will not be ready to give effect to the register until the second half of the year – potentially even after summer.
At Leaders’ Questions in the Dáil on Wednesday, Social Democrats leader Holly Cairns accused the Government of prioritising proposals “that will have renters living in sheds” rather than regulating Airbnbs and bringing potentially thousands of homes back in to the long-term rental market.
The Government announced plans to introduce an Airbnb register four years ago but since then there had been four years of inaction, delay and excuses, she claimed.
There was also another missed deadline this week. “A plan to have the register come into force on May 20th is dead in the water, as is any prospect of homes returning to the long-term rental market any time soon.”
She said the initial plan was to restrict short-term lets to towns of 10,000 or more. “Then, thanks to lobbying by the Healy-Raes, you abandoned that plan, raising the bar to towns with a population of 20,000-plus.
“You shafted renters to keep the Healy-Raes happy, only for them to walk out of Government a few weeks later.”
Cairns said record numbers of people are now homeless, including more than 5,500 children. “Meanwhile, in some areas of the country, there are 25 times more homes on Airbnb than there are to rent.”
The Taoiseach insisted, however, they were “nearly there” in completing the process on the Short Term Letting and Tourism Bill, which “will provide the statutory basis for the introduction of a register for all short-term lettings in Ireland”.
The policy framework will “restrict the approval of new planning commissions for short-term lets in cities and large towns”.
Martin told the Cork South-West TD “there’s been a lot of pushback” from people operating Airbnbs in west Cork and Kerry and along the western seaboard and around southeastern areas.
