In terms of supply, the focus in the Strategy for the Rental Sector is on maintaining existing levels of rental stock and encouraging investment in additional supply. There are shortages in the supply of rental accommodation in key locations, particularly in urban areas. In some of these areas there is also significant demand for transitory short-term accommodation. In this context, easier access to short term rentals at higher prices may be an attractive option for landlords. However, a recent determination by An Bord Pleanála in a particular case has determined that the exclusive use of a residential apartment for short-term holiday lettings is a material change of use requiring planning permission.
The implications of this case have raised a number of regulatory and other related issues, such as tax liability, residential tenancy regulation, support for tourism, and planning. With a view to providing more information on the scale and nature of the issue and full clarity regarding the appropriate regulatory approach to be adopted by relevant statutory authorities in relation to short-term tourism-related lettings, my Department, as provided for in the Strategy for the Rental Sector, is establishing a working group, comprising representatives of relevant stakeholders including local authorities, relevant Departments, public bodies and other interests in the area, to consider the disparate issues involved. The group is expected to report in Quarter 2 of 2017.
