Airbnb faces calls for tougher enforcement of rental rules in Ireland

View of the Ha’penny Bridge on a bright sunny day in Dublin, Ireland.

Stricter enforcement of Airbnb and short-term rentals in the Republic of Ireland is needed to protect the housing and rental market.

That’s according to housing campaigners and opposition politicians who believe regulations introduced last year need to be tightened up ahead of tough months and years ahead for the economy.

Last July, regulations on short-term rentals came into force with a “one guest, one home” model enforced by local planning authorities.

Eoin O’Broin, MP and housing spokesman for Sinn Féin, the main opposition party, told CNBC that the regulations are strong but are falling apart on enforcement as the planning system is a “very slow and laborious process”.

For Airbnb hosts renting a room in the home they live in themselves, there has been little change.

However, for people renting second homes, holiday homes and other properties which are not their primary residence, they are required to obtain a “change of use” planning permission from their local authority. The regulations were introduced to encourage more properties to return to the market over the long term. Rising rents in cities like Dublin have been a difficult political issue, as the average rent in the capital rose to 1,709 euros ($2,010), from 1,252 euros in the same quarter five years ago.

However there is been a small number short-term rental planning applications filed with authorities despite the number of listings remaining high, as hosts avoid the lengthy application process.

“We always knew that regulations, however good they were, would fall into weak enforcement if left to local authorities. This is not a criticism of the advice, it is just the nature of the ‘planning application,’ O’Broin said.

Ireland’s Department of Housing, Planning and Local Government said in a statement that there was a commitment in the program for the government to “strengthen regulatory and enforcement mechanisms”.

“Around 2.5 million (euro) has been allocated to local authorities for the enforcement of short-term rental provisions until the end of 2021. Targeted enforcement regimes are expected to be strengthened as dedicated resources continue to increase at the national level,” the ministry said.

Fines

O’Broin is in favor of fines platforms and real estate agents for allowing non-compliant property listings rather than prosecuting individual hosts. Under these rules, a platform or real estate agent would be required to see proof from users that they have the necessary approval to list their property.

Otherwise, a platform would be “fined every day it advertises a non-compliant property,” O’Broin proposed.

“Airbnb has worked with hundreds of governments and organizations around the world to help hosts share their home, follow the rules and pay taxes, and we want to be equally good partners in Ireland. We’ve always sought to work collaboratively with Ireland to make its home-sharing rules work,” an Airbnb spokesperson said in a statement.

“Since the regulations were announced, we have been promoting the rules to hosts and have sought to work with all levels of government to build awareness and compliance. We look forward to contributing innovative ideas for the future of home sharing in Ireland and suggestions for reviving tourism with our industry colleagues.”

John-Mark McCafferty, chief executive of housing charity Threshold, agrees there is still a long way to go when it comes to enforcement.

He thinks that while some properties that are typically listed on short-term platforms have come back to the long-term market, that hasn’t happened in any substantial way.

“(In) Dublin there are some changes but it’s not very big. It’s still a very tough rental market for private tenants. Rents are still high, it’s not like they’re going down. ‘were collapsed or even drastically reduced.”

Accommodation

Housing, rent increases and homelessness have been burning issues in Irish politics for some time.

In August, figures from the Department of Housing, Planning and Local Government showed there were just over 8,700 people in emergency accommodation. This marks a slight downward trend from previous months as measures against evictions and rent increases were introduced during the coronavirus lockdowns.

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As the government’s budget approaches in October, charities and housing campaigners are calling for more support to cut the numbers as the country faces an economic downturn.

Threshold, in its pre-budget submission to the government, called for several measures. He is seeking a 20 million euro ($23.4 million) rent arrears fund to help people facing financial hardship resulting from the pandemic, more resources for local authorities to build homes and the reintroduction of a moratorium on evictions and rent increases, which had expired in August.

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