Change In Legislation On Short-Term Letting – Impact on Airbnb Property and others
The introduction by Minister for Housing, Planning and Local Government of the new regulations in respect of short-term letting will mean that all existing residential units which are used for the purpose of short-term rental i.e. for 14 days or less at a time, will require the benefit of Planning permission for a change of use to short-term lettings (STL).
The political agenda is that this is an unregulated activity and is not home sharing but a commercial enterprise. In a time of low housing construction to meet demand, and in an environment of increasing onerous residential tenancy reforms, the withdrawal of rental homes from the letting market, will be deemed “unacceptable” (to use the ministers words) particularly in our cities and large towns where rents are high and supply is constrained.
We understand the changes are to regulate for the first time short-term lettings, however, they will impact all existing rentals. Homeowners will be required to register with their local authority as a ‘homesharing’ rental of their primary residence where an annual cap of 90 days will apply.
Commercial rental properties will only be allowed where the use is already permitted to be used for tourism/short-term letting purposes. Otherwise planning permission for a change of use to STL will have to be applied for. The minister’s direction, (and we presume a further circular, advising will be issued) is that in areas of high housing demand, it is unlikely that permission would be granted. It will be up to each local Planning Authority to grant permissions. It is understood that additional resources will be provided within Dublin City Council’s Planning Section to monitor the supply of short-term lettings on the relevant booking sites, oversee the compilation of registers and to monitor enforcement.
It is intended that the new planning changes will come into effect on 1 June 2019, to allow property owners to prepare for and adapt to the new laws. There would seem an opportunity to have existing properties legitimised before the introduction of the regulations.
Contact us if any further explanation of the forthcoming regulation is required.