Government plans to introduce a register for short-term lets as part of efforts to force more Airbnb-style properties back into the long-term rental sector are facing a delay, The Irish Times has learned.
Despite the plan that the register would come into force on May 20th, legislation underpinning the reforms is still being drafted – with three senior Government sources now saying they expect the deadline will be missed.
It comes amid signs of backbencher unrest over the plan.
The proposed register would make it impossible to access the main platforms like Airbnb without first registering with Fáilte Ireland.
In order to get on to the register, a property must have the appropriate planning permission. However, many operators have been letting properties on a short-term basis without planning in place.
Fianna Fáil backbencher James O’Connor, who chairs the enterprise and tourism committee which is examining the legislation, said there were issues being raised by short-term letters coming before it. “As chair of the enterprise, tourism and employment committee, I am very concerned about this legislation,” he said.
The Cork East TD said people may “find themselves having to go through enormous costs” to become compliant – either by getting planning permission, or if they have been active for more than seven years, retention permission which would allow them to continue operating even if not compliant.
The new regime needs two things to be in place before going live: firstly, a National Planning Statement (NPS) from the Department of Housing and then the Short Term Letting and Tourism Bill, which is being progressed by the Department of Tourism.
The Department of Housing has drafted an NPS, which provides the overall policy approach at national and local level to enable planning authorities to determine applications for short-term lets across the country. The NPS may be agreed by Cabinet as soon as next week.
However, a spokesman for the Department of Enterprise said the drafting of the legislation is “ongoing”.
“The Bill will provide the statutory basis for a national register of STL in Ireland. The STL register will commence following the enactment of the Bill.”
Some letting platforms have begun to brief users that they believe the new system is likely to be introduced later than originally indicated, based on how far progressed legislation underpinning the coalition’s plan is.
Missing the deadline would push the start of the new system out beyond two byelections scheduled for May 22nd. A question would then arise as to whether it would come into place over the summer, the busiest period for tourism.
One source said the initial deadline was always optimistic but said the ambition was still to bring it in as soon as possible, adding notice would have to be given to operators as bookings had been taken.
The new regime will see an effective ban on new planning permissions for short-term lets being granted in towns with a population of greater than 20,000 people. Those currently operating in a town smaller than this will get a two year grace period to come into line with planning.
While previously it had been thought that those operating for more than seven years would be able to continue if they could prove tax compliance, it is now expected that they will have to apply for retention permission as well.
