TENSIONS HAVE EMERGED this week between Tourism Minister Peter Burke and Housing Minister James Browne, along with other ministers, over the short-term let bill, which seeks to regulate the likes of Airbnb properties. 

The Journal reported yesterday that government rowed back on plans that would ensure short-term let planning permissions would be required in towns with populations over 10,000. 

Instead, after what is being dubbed as pressure from the Kerry ministers in government, such as Michael Healy Rae and Norma Foley, the limit was increased to 20,000. 

This means there will be an effective ban on granting planning permission for short-term lets in population centres of more than 20,000 people.

However, it has also resulted in a number of smaller towns falling outside of the rules that aim to bring more properties back into the normal rental sector. 

The housing minister had sought to apply the new rules to towns with populations above 10,000, however it is understood there was significant pushback. 

At the party leaders meeting on Monday night, which included the key ministers, it is believed there were some suggestions that only those in cities would fall under the new legislation.

However, it is believed that Browne argued that larger towns, at least, should be included.

According to sources, it was the Taoiseach’s attitude that he wanted this legislation sorted and done quickly, instructing ministers likewise.

Possible two-year period for Airbnb operators to comply

While the population limit has been agreed and signed off on by government, the ‘grace period’ for which property owners who operate short-term lets have to become planning permission compliant is still up in the air. 

Under the current rules, anyone who wishes to operate a short-term let or Airbnb in an area that falls under a Rent Pressure Zone, must apply for planning permission from the local authority to let out their property as a short-term let. 

However, as reported previously, many are in breach of the law as it currently stands and there is little enforcement by the local authorities. 

Local authorities, such as Dublin City Council, have attempted to clamp down, sending around 300 statutory warning letters this year to property owners engaged in the alleged unauthorised use of short-term rental of their properties to tourists and visitors to the capital.

‘Grace period’

It has now emerged that it has been difficult for ministers to reach agreement on the so-called ‘grace period’ that will be open to short-term let property owners under the new scheme. 

Despite it already being a requirement (since 2019) for property owners to obtain change of use planning permission to let out entire houses and apartments on platforms such as Airbnb when they are located in rent pressure zones, these owners are set to get even longer now to comply. 

Yesterday, Taoiseach Micheál Martin reminded the Dáil of this, stating:

That is just the law as it is.

“We are examining the process of registering so that we would facilitate opportunities for those registering to regularise planning over a particular timeframe. That has to be tied down with a degree of precision. That will happen before the Bill comes to the Dáil. That is all fairly imminent.

“We need to keep calm here and facilitate regularisation, if people have not done that already,” he said. 

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Government sources said that consideration is being given to allowing people without planning permission continue operating for a period of time, to give them time to get their house in order and apply for planning permission.

Currently, a period of two years is under discussion.

Sources state that two years seems to be the plan, so as to give time for property owners to transfer out of the business and perhaps find another income. 

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While they said no final decision has been reached, that is the direction of travel, it is believed. 

However, one senior source said such a time period could be deemed too long.  

It is understood that some are arguing for a shorter timeframe, stating that it should only take around eight weeks for them to comply with the planning regulations when they are put in place. 

One reason being given for such a long ‘grace period’ is to ensure that local authority planners are not bogged down with an influx of applications.

Although it was noted that that this would largely only apply to those looking to operate short-term lets in population areas under 20,000.

Planning applications for short-term lets made in larger towns and cities will operate on a basis where there would be a presumed refusal, with only limited grounds for approval.

The government still aims to have the new legislation in place by 20 May, but again, the two department are at loggerheads over whether a planning statement from the Department of Housing is needed for things to progress. 

Department of Tourism officials state one is needed for the pre-legislative scrutiny report to be signed off on and to give operators of short-term lets time to regularise.

It is argued that one is also needed to provide planning guidance to local authorities that any planning permission should be refused if the property in a town that has a population larger than 20,000.