The Government is planning to introduce restrictions on short-term lettings in towns with populations exceeding 20,000, reports RTE.
A deal in principle was reached following talks between Government party leaders and the Minister for Tourism, Peter Burke, on the matter last night, reports RTE.
Short-term letting is defined as renting accommodation for periods of up to 21 nights.
The proposal had originally been intended to apply to towns with populations of 10,000, but a notable change to that plan is now being considered, reports RTE.
According to the 2022 Census, there are 20 towns nationwide with populations above 20,000. Drogheda in Co Louth was the largest, with 44,135 residents recorded four years ago.
It is understood that Minister Burke stressed the importance of providing certainty for operators, reports RTE.
Speaking to reporters on his way into Cabinet today, Mr Burke welcomed the agreement on limiting short-term lets, saying it was important to “build resilience in our tourism sector”.
“There are many areas in our country where it is not viable at the moment to construct hotels, and we need to work on that across 2026,” he said, reports RTE.
The minister also said it is necessary to ensure there is enough capacity to accommodate additional tourists coming to Ireland.
“Critically, for the five cities, which are going to be the key component in delivering into the housing sector from the short-term sector, this will provide a solid pathway for that,” reports RTE.
Proposed legislation that would require all short-term lets to be compliant with planning regulations will be examined by an Oireachtas committee later this week.
The Department of Housing is also expected to issue a planning statement on the issue, which has often proved contentious, reports RTE.
Sinn Féin housing spokesperson Eoin Ó Broin described the revised proposal as a completely backward step, accusing the Government once again of “shafting” renters.
Labour TD Conor Sheehan has also criticised the decision to increase the population threshold for regulation, saying it was driven by “political reasons”, reports RTE.
Mr Sheehan, his party’s housing spokesperson, questioned whether Minister Burke or Minister of State Michael Healy-Rae was really in charge, noting that Mr Healy-Rae had previously opposed the lower population limit.
“The Government need to seriously clamp down on providers like Airbnb, platforms like them, who are at the moment allowing people to platform their properties, people who would not have registered and would not have been in compliance with the 2019 legislation,” he said, reports RTE.
“We’ve had Threshold report after Threshold report on the effect that this is having on rents in the private rental market,” reports RTE.
The Tánaiste said the City Living initiative is being expanded to “tackle dereliction and vacancy in many of the large towns”.
He said applications will open this summer for people to avail of the scheme, which he believes “will make a real difference in trying to regenerate some of these large towns”, reports RTE.
He added that the initiative will also “get more housing supply back into use during the middle of a housing emergency”.
Still a great deal of uncertainty – Irish Tourism Industry Confederation, reports RTE.
Irish Tourism Industry Confederation CEO Eoghan O’Mara Walsh said there remains significant uncertainty across the sector regarding short-term letting properties.
Speaking on RTÉ’s News At One, he said the Government’s intention to restrict short-term lets in towns with populations above 20,000 is a move in the right direction, but added that clearer guidance is needed, reports RTE.
He questioned whether a full ban on short-term and self-catering properties was being considered, warning this could seriously harm the tourism economy in larger towns. He said a pragmatic approach is required when it comes to planning rules and population thresholds.
He also highlighted major uncertainty around the planning permissions that would be needed to continue operating as a short-term let, noting the sector has so far been unregulated, which he described as “problematic”, reports RTE.
He explained that the vast majority of self-catering and short-term rental properties do not currently have planning permission, and said the lack of guidance from the Department of Housing is “hugely frustrating”.
He said a grace period of around nine months may be needed to allow properties to become planning compliant, reports RTE.
He added that while urban centres need to see properties return to the housing market, many regional and rural areas lack sufficient hotel accommodation, meaning short-term rentals and holiday homes must be protected there.
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