I propose to take Questions Nos. 650 and 711 together.
On 7 December 2022, the Government approved the publication of the General Scheme of the Registration of Short-Term Tourist Letting Bill (STTL Bill) and the priority drafting of the Bill providing for the establishment of a new registration system for short-term lettings to be operated by Fáilte Ireland in line with the commitment in this regard under Housing for All - A New Housing Plan for Ireland. The work on the Bill is being led by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media (DTCAGSM).
The proposed STTL Bill remains the subject of ongoing engagement with the EU Commission in accordance with the requirements of EU Directive 2015/1535 on the Technical Regulation of Information Society services (the TRIS Directive)
As part of this engagement, officials from DTCAGSM and Fáilte Ireland met with representatives of the Commission in Brussels on 11 December 2023 and subsequently, on 15 December, provided a formal response to the Commission’s previous communication of 22 March 2023 on the STTL Bill setting out Ireland’s proposed approach to achieve alignment between the STTL Bill and EU law, in particular the recently adopted EU Regulation on Short Term accommodation Rental services (the EU STR).
On 9 February 2024, the Commission responded positively regarding the principles outlined in Ireland’s formal response on the STTL Bill and suggested that further consideration was required to ensure complete alignment with the EU STR. DTCAGSM officials met again with the Commission on 21 February and provided further clarifications on the proposed approach. This was a positive engagement and the officials have provided a further written response to the Commission via the TRIS Directive notification process.
It is expected that the TRIS process will conclude shortly and that the STTL Bill will be published in the period thereafter with a view to progression to enactment in the Oireachtas.
Under the Planning and Development Act 2000, as amended (the Act), all development, unless specifically exempted under the Act or associated Regulations, requires planning permission. This includes a material change of use of a property such as for short term letting. Where a person owns a second property which is not their principal private residence and lets it, or intends to let it, for short-term letting purposes, they will require the appropriate planning permission to do so unless the property concerned already has planning permission to be used for tourism or short-term letting purposes, or is otherwise exempted under legislation.
My Department is currently developing Planning Guidelines for the Short-Term Letting sector to supplement the introduction of the STTL Bill. This guidance will provide clarity and certainty on the planning permission requirements in respect of short-term letting properties. It is intended that a draft of the guidelines will be published simultaneously with the publication of the STTL Bill by DTCAGSM in order that property owners can have a greater understanding of the planning requirements well in advance of the final enactment of the STTL Bill. It is not proposed to establish a new category of planning permission in respect of short-term letting properties.
Under the STTL Bill, it is proposed that property owners operating within the sector will be allowed a period of six months from the establishment of the proposed STTL register to check the planning status of their property and/or apply for change of use planning permission. During this period, they can continue to offer their accommodation as tourist accommodation while their planning permission status is being clarified.
Section 24A of the Residential Tenancies Act 2004, as amended (the RTA), provides that the Housing Agency, in consultation with housing authorities, may make a proposal to me, as Minister, that an area be considered for designation as a Rent Pressure Zone (RPZ). Following receipt of such a proposal, I, as Minister, request the Director of the Residential Tenancies Board (RTB) to conduct an assessment of the area to establish whether or not it meets the criteria for designation and to report to me on whether the area should be designated as a RPZ.
The criteria to be satisfied by an area under section 24A(4) of the RTA for designation as an RPZ are that the information relating to the area, as determined by reference to the information used to compile each RTB Rent Index quarterly report, shows that the annual rate of increase in the average amount of rent for that area is more than 7% in each of at least 4 of the 6 quarters preceding the period immediately prior to the date of the Housing Agency's proposal, with further specific requirements applying in relation to the last quarter before designation.
Each RTB quarterly Rent Index Report includes a table of the data used to establish whether each the area fulfils the criteria for designation as a RPZ. The Housing Agency and the Residential Tenancies Board (RTB) continually monitor rents across the country and if any area meets the Rent Pressure Zone designation criteria under the RTA, it will be designated as a RPZ.
To date, 62 Local Electoral Areas throughout the country have been designated as RPZs under the RTA, including Waterford, Limerick and Kilkenny.
