The Issue
The well-documented supply crisis in Ireland’s long-term housing market is an issue of critical concern. Threshold has been campaigning for the regulation of short-term lets since 2018, as it became apparent that their increasing numbers were causing disruption to the Irish long-term housing market.
Threshold campaigned for the introduction of the 2019 regulations and was happy to see them in effect. The regulations introduced in July 2019 require homeowners in Rent Pressure Zones (RPZs) such as Dublin, to apply to their local authority for planning permission to change property use to short-term lettings, where these lettings exceed 90 days in the year.
However, as all of Dublin is defined as an RPZ, it is unlikely that change of property purpose permission would be granted if one were to apply. This is to make sure viable housing is kept on the long-term rental market.
However, we did not see this being well enforced. Multiple cases have been discovered throughout the country where landlords are leasing out appropriate long-term rental properties, such as houses and apartments, as short-term stays for holidaymakers – allowing them to gain a far greater income.
The Solution
In an attempt to further enforce the 2019 regulations and bring the much-needed stock back into the long-term rental market, the new bill, General Scheme of the Registration of Short-Term Tourist Letting Bill 2022, means online platforms will not be able to advertise properties in RPZs that do not have the requisite planning permission. The planning permission registration number must be visible on the listing on the short-term letting website.
While this legislation is not a silver bullet for the supply of homes in the private rented sector, it will help in returning homes back to the longer-term rental market, which is critical right now.
Case Study: Dublin
According to data* from Inside AirBnB, there were 2,144 entire properties available for short-term let in Dublin. 404 properties were operated by hosts advertising five or more properties. Additionally, 225 properties were operated by hosts advertising ten or more properties. This means there are potentially hundreds of homes that could be made available to those looking for a long-term home.
Daft.ie** has only 479 properties to rent in all of Dublin.
The sample of those selected only needs to let out their properties for a few nights a month to collect the equivalent income in the private rental market, rather than rent even some of their properties to a family in the area.
One host advertises 88 properties (as of 7/3/23) in Dublin dotted across Dublin 6, Dublin 8, and city centre. For example, a 2 bed and two-bath property in Rathmines 6 with a 6-night minimum stay will cost you €508 per night. This totals €3050 for six days. By comparison, a two-bed and two baths in Rathmines is advertised on Daft for €2,100 a month.
Case Study: Galway
According to data from Inside AirBnB, 894 listings in Galway City and County are entire properties. 456 are advertised by hosts with more than 2 properties. 228 properties were operated by hosts advertising five or more properties. Additionally, 141 properties were operated by hosts advertising ten or more properties. This means there are potentially over a few hundred homes that could be made available to those looking for a long-term home.
Daft.ie has only 56 properties to rent in all of Galway County.
This is a nearly sixteen-fold difference between the properties available for short-term and long-term let in Galway. Also, there is nearly a three-fold difference in properties operated by hosts advertising ten or more properties than there are advertised for long-term let on Daft.ie in all of Galway.
One host appears to have a portfolio of 33 properties advertised with 26 in near Galway City. A two-bed apartment in the middle of Galway City Centre Lough Atalia rents for €190 a night and has a six-night minimum stay, with the cleaning fee and service charge on top of that. Less than a week in Malcolm’s property comes to €1,373.
Meanwhile, the only other equivalent property that is available on Daft.ie that is under €2000 per month is €400 a week. As with other examples listed here, this host can earn, in less than two weeks, the equivalent income in the private rental market. Regulation is needed so families in Galway can access much-needed housing stock.
Case Study: Cork
According to data from Inside AirBnB, 934 listings in Cork City and County are entire properties. 200 are advertised by hosts with more than 2 properties. 98 properties were operated by hosts advertising five or more properties. Additionally, 44 properties were operated by hosts advertising ten or more properties. This is in addition to the growing number of homes that could be made available to those looking for a long-term home.
Daft.ie has only 64 properties to rent in all of Cork County.
This is a nearly fifteen-fold difference between the properties available for short-term and long-term let in Cork. Also, there are more properties operated by hosts advertising five or more properties than there are advertised for long-term let on Daft.ie in all of Cork.
One host has 8 homes in Cork listed as short-term lets, 4 in Kinsale and 4 in Cork City. In the case of the four short-term let properties in Kinsale ranging from €184 per night to €315 per night. This one proprietor has more properties for short-term let than there are in total in Kinsale advertised for long-term rent on Daft.ie. Both are advertised at €2,000 a month and €2,500 per month.
Case Study: Limerick
As per the Inside AirBnB data, 126 listings in Limerick City and County that are entire properties. 55 are advertised by hosts with more than 2 properties. 9 properties were operated by hosts advertising five or more properties.
Daft.ie has only 17 properties to rent in Limerick County.
This is a seven-fold difference between the properties available for short-term and long-term let in Limerick.
One host has a portfolio of seven properties which includes two apartments in Limerick City Centre available for short-term let. One of these costs €122 per night and a 6-night stay will cost €774. The other costs €93 per night for 5 nights. This will cost €505.
To put this into perspective, on Daft.ie, there are only six properties available on long-term let.
*Data from Inside AirBnB was gathered in September 2022
**Data from Daft.ie was gathered on the 7th of March 2023