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Rental Sector

Dáil Éireann Debate, Wednesday - 14 November 2018

Wednesday, 14 November 2018

Questions (104, 116)

Eoin Ó Broin

Question:

104. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the status of his plans to regulate the short-term letting sector; and if short-term letting providers will be liable for commercial rates and-or water charges post successful application for planning permission for the purpose of short-term letting. [47151/18]

View answer

Mick Barry

Question:

116. Deputy Mick Barry asked the Minister for Housing, Planning and Local Government if he will report on the implementation of regulation on short-term letting; and if he will make a statement on the matter. [47158/18]

View answer

Written answers

I propose to take Questions Nos. 104 and 116 together.

Under Action 18 of the Strategy for the Rental Sector, a Working Group was established, involving representatives of all major public stakeholders with a policy interest in short-term lettings, to develop guidance in relation to planning applications, changes of use relating to short-term lettings and to examine the need for new regulatory arrangements, including having regard to regulations in place in other jurisdictions. Proposals considered by the Working Group have been aimed at facilitating short-term letting of accommodation within permanent residences, known as homesharing, while protecting the existing stock of residential property in areas of high demand.

Having considered the Group's report as well as the recommendations in the Oireachtas Committee's report on short-term lettings, I recently announced plans to introduce a “one host, one home” model in areas where there is high housing demand.

Homesharing will continue to be permissible for a person’s primary residence, and such home-sharers will have to register with their local authority. An annual cap of 90 days will apply for the renting out, on a short-term basis, i.e. for 14 days or less at a time, of a person’s entire home where it is their primary residence.

Where a person owns a second property and intends to let it as a Short Term Letting (STL), they will require planning permission to do so unless the property is already permitted to be used for tourism / short-term letting purposes. Planning permission for a change of use to STL can be sought and it will be up to each local Planning Authority to consider applications, based on guidance that will issue from my Department, taking account of housing demand pressures and other relevant factors such as cumulative impacts.

These proposed changes will not affect the operation of holiday homes as typically understood, or longer-term flexible lettings which are provided for those coming to Ireland under employment contracts.

It is intended that the new planning changes will come into effect on 1 June 2019, to allow property owners time to prepare for and adapt to the new arrangements. In addition to revised draft exempted development planning regulations which have been prepared, amendments to primary legislation will also be introduced to underpin and strengthen the new proposals and the drafting of these amendments is currently underway.

Any unauthorised development, including breaches of the proposed exemptions, may be the subject of planning enforcement by the relevant planning authority.

With regard to commercial rates, the general premise under valuation legislation (section 15 and Schedule 3 of the Valuation Act 2001, as amended) is that all buildings and lands used or developed for any purpose are rateable unless expressly exempted under Schedule 4 of the Act. Lettings of private residences for residential purposes (whether houses or apartments) on either a short or longer term basis are not generally rateable by virtue of Schedule 4, paragraph 6.

Water customers are classified as domestic and non-domestic customers. Water charges no longer apply to domestic customers with the exception of legal provision for charges in respect of excessive use. Irish Water applies charges to non-domestic customers in accordance with a Water Charges Plan that is approved by the Commission for Regulation of Utilities. The current definition in the Water Charges Plan is that a Non-Domestic Premises “means a Premises in which Water Services are used for Non-Domestic Purposes, defined in the Water Services Act 2007 as (a) agriculture or horticulture, (b) any trade, industry or business, (c) any purpose incidental to a household or private garden if the water is drawn otherwise than from a tap inside the household or if a hosepipe or other similar apparatus is used, (d) central heating other than the central heating of a household; (e) apparatus depending while in use upon a supply of continuously running water, not being an apparatus used solely for heating water.” In accordance with current policy applied by Irish Water, all water in relation to the provision of short term accommodation in B&Bs, hotels and self-catering accommodation may be subject to a charge.

These matters will be addressed further once the draft regulations are finalised.

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