We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
APARTMENTS SITUATED IN rent pressure zones may not be appropriate for Airbnb use, according to new guidelines from the Department of Housing.
In a circular notice issued to local authorities, the department recommends that apartments will require commercial planning permission to be used as short-term lets, which is restricted for up to 60 nights a year.
The letter also states that owners should not be allowed to rent their properties for more than five nights in a row.
The document, which is published on the department’s website, highlights the current planning laws, which states that the change of use of a property, such as for short-term lets through platforms like Airbnb, requires planning permission.
A maximum of two rooms per apartment can be occupied per night with no more than four guests.
No more than 20% of the apartments accessible on any floor from any access stairwell or lift core can be approved for short-term letting.
In a statement, Airbnb said:
This guidance is a step in the wrong direction towards one of the most restrictive regimes in Europe on how regular people can use their homes. It is complex and confusing, and will increase costs, red tape and bureaucracy for everyone.
We want to work with the government to clearly distinguish between regular people sharing their homes and professional operators running a business, and make it easier – not harder – for families to follow the rules and share their homes.
The company said the criteria makes Ireland “one of the most excessively restrictive regimes in Europe”.
It added that the new criteria will only “boost red tape and bureaucracy” and will make Ireland an unaffordable destination.
The letter issued this week goes further than the letter sent by the previous Housing Minister Simon Coveney to councils last year, as it sets down clear criteria for local authorities about when and under what circumstances planning permission should be granted.
‘Negative impact’ on market
The department notes that the issue of potentially significant numbers of properties being withdrawn from the long-term rental market for use for short-term lettings could be having a “negative impact” on supply and availability of residential rental accommodation.
“The growing use of online platforms may, if not adequately regulated, facilitate and encourage this trend,” it states.
It added that there are significant concerns that the use of online platforms may encourage landlords, who normally provide normal rental accommodation, to seek to obtain higher returns by moving to short-term letting, tapping in on tourist and business customers.
Short-term lets
The issue of investors buying up properties for the sole purpose of short-term letting is also concerning, said the department.
In addition to loss of accommodation from the long-term rental market, the department said there are further adverse impacts on local communities related to high concentrations of short-term lettings in apartment blocks.
“The transient nature of short-term letting can have a disruptive effect on the daily lives and the cohesion of the owner occupier community in a multi-unit development,” the circular stated.
This issue has been highlighted previously by Labour Senator Kevin Humphries, who said that a number of Dublin apartment owners have complained about the noise levels of hen and stag parties staying in apartment blocks.
However, Airbnb deny this is the case, telling an Oireachtas committee on Housing in June that their service is not exacerbating Dublin’s housing crisis as only small numbers of bookings are used for long-term lets.
Airbnb’s director of public policy Patrick Robinson outlined a series of stats on Airbnb hosts to committee members, claiming that the vast majority of hosters were people offering up space in their own homes to earn a bit of extra money.
However, committee members criticised the company for having an “adverse” affect on the capital’s rental market.
Housing Minister Eoghan Murphy told reporters today that the guidelines issued to local authorities essentially states the current position under the current planning laws.
He said it was the criteria is “straightforward” and he expects the local councils to implement his orders.
Home-sharing
“When we talk about home-sharing – I am all in favour of it – but it has to mean home- sharing and that is what we are trying to achieve,” said the minister.
Murphy said he understood that some people are letting their homes out to get a bit more income.
“We have to find the balance to ensure that this can continue as part of a new shared economy, but also making sure that it is not taking away houses from the long-term market that should have been there and also that it is not in breach current planning laws.”
He said the departmental working group, tasked with reviewing if new regulations should be introduced for lettings website such as Airbnb, has more work to do to better understand how Ireland should deal with it.
“We are looking at international best practice, what other cities have done, where we have high demand areas, but also areas which are tourist destinations, to make sure we are not losing a significant amount of supply of housing out of the normal market for short-term lettings,” said Murphy.
When we talk about home sharing – I am all in favour of it – but it has to mean home-sharing and that is what we are trying to achieve.
To embed this post, copy the code below on your site
Will they ever stop skirting around the issue and get on with building houses on council land
@Tim: How about opening up some of those council houses that are boarded up????
Instead of blaming private landlords, OAPs, people with holidays homes, AirBnB, … did I miss anyone?
@Tim: airbnb are a good scapegoat
@B9xiRspG: The number of boarded up houses is a drop in the ocean compared to what is needed in terms of house supply.
@Ne:
To be fair to Mr Barrett the number of boarded up homes is far greater than the number of Airbnb’s, the difference is Airbnb tend to be where shortage is greater than the boarded up houses.
@B9xiRspG: Why because many are unsafe and would cost too much to renovate. Cost also dictates that there isn’t enough money to open every boarded up house, we’re they indeed safe. So on the one hand your comment blames the council but you want them to do more. Another person who publicly shares an opinion on what they don’t know about.
@Ne: Housing Minister recently reports 134000 boarded up / unused housing units nationwide. They are currently planning on building 3000 new ones. Airbnb is just a deflection.
@Tim: you mean do something. lol. they will never do anything
Ridiculous!
“to seek to obtain higher returns by moving to short-term letting, tapping in on tourist and business customers”
God forbid someone tries to make the most money that they can from an investment property! People should be free to do with their homes what they wish, as long as they are not causing harm to others.
@Pheilum Shannon:
You say people should be allowed to do what they want with the ‘homes’, that is not the problem. The problem is the ‘investment properties’ and turning potentially long term rental properties into hoses operating like a hotel
@Nick Allen: What’s the problem with that? It’s the person private property. What they do with it is up to them.
It is not the responsibility of the private sector to fix the housing crisis, people are quick to blame landlords for high rents yet we want people to rent their property.
Let the councils and government solve the problem and the first thing they can do is open up all the boarded up houses belonging to NAMA and the councils.
@B9xiRspG: they are operating in the hotel market without planning permission for change of use, commercial rates, water charges etc.
That’s what is wrong with it.
@Pheilum Shannon: worked so well in Spain that air b&b malark. forcing locals out of their homes. Airbnb, more than 6,729 properties in ireland, Airbnb is having an impact on the housing market and there’s no doubt about it. We have this extraordinary situation where there are Dublin residents who are having to live in hotels and tourists who are staying in apartments.”Last year, there were reports of an estate agent boasting that a two-bedroom unit they were selling could command €79,000 per annum through Airbnb.so it won’t be long before we are all in hotels pheilum.
@Cicero: don’t forget liability insurance & fire certs,
@Cicero: Are hotels restricted for up to 60 nights a year? They are trying to force people out of AirBnB and possibly back to rental market. Chances are people will just not bother with the rental market as believe it or not it’s way too much hassle for them.
@Andrew Mockler: Andrew here is an idea – if you want a house – work and buy one yourself, if you can’t afford it and are waiting on social housing don’t blame the private sector for that.
Open up all the boarded up houses that belong to NAMA and local councils.
Every week or so we get an article like this – blaming either AirBnB, landlords, OAPs etc. for the housing crisis and people like you fall for it each time.
The fault is with the government and their policies no one else. The solution is also with them and it shouldn’t require private sector to resolve it.
Ahhh so it’s AirB&B’s fault that the property market in Dublin is out of control. Unfortunately, the issue is far more complex than that.
@Markonline: it is – but this is a fine start. There is no single solution so let’s move forward on all of them at the same time
@Cicero: indeed, other low lying fruits include the 8000 people on the decentralisation waiting list which could free up a lot more “arguably” affordable accommodation in Dublin.
@Markonline: hotels are not happy with airb&b as they lose money …. people forget politicians/business men own these hotels. But sure blame it on housing crisis on airb&b it was never the government fault
@Paul O Meara:
I don’t own a hotel but if you are running a commercial business, be it Airbnb or changing tyres, you should be subject to the same rules, regulations and benefits that the B&B, hotel or indeed tyre fitter down the road.
@P.J. Nolan: I see your point of view … how about landlords should they change use of premises to commercial use also….
@Paul O Meara:
To one extent they already have, if you buy a buy-to-let now you pay commercial stamp duty, 7% instead of 1%.
None the less if a property is rented out in the normal way it’s still being used as it was intended, and has planning permission for, a home.
@P.J. Nolan: it is the treated as commercial yet the full amount of mortgage interest isn’t allowable against tax as a business expense, nor is property tax and you can’t leave the property to your offspring in the same manner that a farmer or businessman could without incurring extreme taxation.
@Sean:
all true.
great news
@Andrew Mockler: Great news for politician/property owners, who are making sure no one will ever be allowed build on the hundreds of acres of fields around the M50. Should keep their profits up for awhile.
Fantastic news.
I was booted out of the last place I lived by the landlord, who had it up on AirBnB within a month.
I have no legal standing as he told us he was “either gonna sell or put it on AirBnB” and was quite honest with us that he wasn’t making enough money off the house by renting it to us and as he had a baby on the way, he had to make more money. He even told us we were perfect tenants and he loved all the improvements we had made to the place!
I can see it from both sides, as any of us could – but it’s pretty fcuking horrible looking for somewhere else to live in this market, knowing the reason you were kicked out of your home was just so the landlord could make more dosh. Just no human element to it at all – just money, money, money.
@Rachel: Hah. What No. Call the PTRB if you found it on airbnb. You can get your money back.
@Rachel: but that’s the Irish way. May a quick buck off the backs of others.
@Rachel: unfortunately there is a human element to landlords too. Those who had to move home but couldn’t sell and rented instead. Renting to tenants you pay upto 55% tax and in most cases this doesn’t cover the mortgage so the landlord is out of pocket on rent never mind damage or non payment of rent by a tenant. . Tax is also paid on all income from airbnb upto 55%. The difference is the mortgage costs can be covered in full this way. Can’t blame landlords not nice for renters. But the government sit on their hands in relation to social housing and blame the landlords and oaps.
@KingBen: How would you end up paying 55% on rental profits?
Just wait for the Irish Property Owners Assocn to take a Supreme Court case…at least we will be able to watch it live on RTE….as usual they will overturn the legislation due to the constitutional edict on property rights….
I don’t really get this you can’t on the one hand create free market conditions and then be selective when the inevitable doesn’t suit. Private landlords are not a substitute for social or affordable housing. This is total chaos
Pretty sure the right to ownership and the right to earn a living will pop up somewhere soon.
Pleased to see this happen
@Nick Allen:
Agreed. There was little wrong with the original idea of Airbnb, that of a householder been able to rent out a room or two for an extra few euros but where there is large scale commercial like use it should be subject to the same rules as any other competing operation.
@P.J. Nolan:
Completely agree. Noting wrong with someone making a few quid but professional AirBnB houses are bad for the local area and for the housing market
@Nick Allen: technically it is home sharing. It is a home and it is being shared.
@Sean:
sorry can’t agree there, a full time non owner occupied property on Airbnb is not or certainly shouldn’t be, a home share.
How is it Airbnb’s fault that there are not enough houses to rent at affordable prices?!?? Iv used it several times in many countries!! I thinks it’s really good!! But that’s just my opinion!!
@Niall Burke: it’s not just Airbnb’s fault but it is contributing to the problem of homelessness/rising rents. I’m aware of a number of properties that for decades were flats and bedsits – the lower end of the rental market – that are now operating as Airbnbs. With this replicated around the city and beyond it adds up to a huge number of low cost rentals taken out of the system. The only options for many former residents is either the street or a hostel.
Many cities around the world are tackling the problem. Amsterdam, Barcelona, Berlin, New York and others have/are introducing taxes and rules around short term rentals.
If someone is changing use of their property from long to short term rental then surely they need permission to do so and should be paying an appropriate tax?
There is a housing crisis. There is a homeless crisis. The residential property market is under supplied in the social, affordable, private rented and owner occupied sectors. Especially in Dublin residential accommodation is in scarce supply.
On a temporary and emergency basis, it makes sense whilst the shortage exists, to restrict residential accommodation being taken out of longer term rental availability and moving it to accommodate temporary tourist visitors.
Homes before short term tourist lets.
It’s sounds like you will need planning permission to even home share? Is that right?
@Captain kirk: no.
The government is very quick to say the free market will sort itself out and they can’t intervene. The truth is they won’t intervene while they profit, but are ready to jump in when it’s not in their benefit.
What a joke
That’s right herd the tourists into overpriced hotels they don’t want to be in. Great Cead Mile Failte. If I couldn’t get a decent Airbnb I either wouldn’t visit a country or would stay for far less time. Government needs to start taking responsibility for the fact we cannot plan and for the fact we are the only capital city in the industrialized world that doesn’t do highrise and the only capital city where the bus and public transport system grinds to a halt in rain. None of these are Airbnbs fault.
Poxy communist state dictating to property owners what they can do with their property.
Only in Ireland
Why just airbnb? why not all the other short term letting agents, so mamy out there buying apartmwnts and blocks of apartments for sole purpose if short term letting, but all we ever hear about is airbnb.
Will they also go after traditional b&bs (basically same thing) budget accomodation like roomtolet.ie also. councils only going after ordinary people ignoring these businesses.
There losing money what a shame… councils are useless.. no one takes responsibility… pass the book
Whatever happened to private property?
Its always been government policy that ordinary people cannot create wealth for themselves. The only people allowed to make money out of our housing crisis are their buddies in Vulture funds and the Banks.
have your say