Clear Data to Explain Housing Issues in Ireland

Self-Catering in Tipperary

 Data on Planning and Housing Development in Ireland

 

Irish Self-Catering Federation  Submission to EU Commissioner on Housing May 2025

 

Introduction

The Short Term Rental (STR) did not cause the housing crisis in Ireland and is not the solution according to ESRI Profiling Short-Term Let Usage across Ireland.

The Irish Minister for Housing James Browne refused to issue data on Social and Affordable Housing completed, as it would be cumbersome to collate and commercially sensitive. He could not provide the Dáil with any clear data in May 2025. The reality is that there is a lack of housing completed, as in the case of Co Mayo, who built 5 social housing units in the past 5 years. Focusing on self-catering and holiday homes distracts from deeper housing issues, stated Kate English Economist.

 

The ESRI Report Profiling Short- Term Lets in Ireland ( April 2025) found:-

  • The majority of Airbnb hosts have just one listing (85 per cent).
  • The highest STR: PRS ratios are found in key coastal tourist locations with typically small rental sectors, as well as in some larger coastal towns.
  • There is no correlation between increases in Airbnb activity and falls in new tenancies between 2019-2023 at the LEA level,  does not appear to be the root cause of the observed falls in available PRS accommodation nationwide.

Clear data on existing STR is essential in Ireland is needed with a Register for STR as a baseline and separated from Planning for existing stock. Due to Irish Tourism and Traffic Act 1939 only Hotels Guesthouses and Campsites are considered statutory accommodation, with STR not being formally registered. There was a register system run by Failte Ireland up to 2008, but as STR was not considered important it was discontinued.

 

Most self-catering are rurally based businesses managed by females +45 yrs,  and need an exemption from STR planning, as previously group schemes or hotels schemes applied for planning. Previous Government research in 2022  on STR properties was based on data scraping. Most of the accommodation is needed in urban high density areas, not in the rural areas of Ireland where most STR is to be found in Ireland with an economic value of €256.8 mil per annum.  

Why A Housing Crisis in Ireand 

The Economic Crash in Ireland in 2008 ended the era of the Celtic Tiger, where there were a lot of non-performing loans on housing. There were also Cuckoo funds who bought a lot of housing stock with the aim of renting them out, rather than sell on open market. Due to the  Economic Crash, when the IMF has to rescue Ireland took place in 2008, and many skilled workers in housing industry left Ireland for good. This has lead to a generation of young people unable to get on the housing ladder, due to Government policy. Now the housing industry is not delivering enough housing units, according to Chief Economist Deloitte Ireland  Kate English. Government spokesman could not confir if housing targets for this year would be missed again.

Data on Housing Ireland
Data on Irelands Population and Housing 1991-2022

The population of Ireland has 5 times the rate of growth for the EU , even though it has slowed since 2023. Birth Rate is one of highest in EU in Ireland (10.3), welcoming people from many counties wtih 18,265 granted Citizenship in 2023

There have been high levels of immigration due to economic prosperity providing  jobs, as shown in EU Spring Economic Growth show GDP Growth very strong and above >3% Growth.

Most housing accommodation is needed in from urban areas and the largest need is for Social Housing, which has been under-funded since 2008  with  apartments and  family groups most in need, in areas close to services, amenities and due to income have no private transport.

One of largest Ukranian Refugee populations in EU based on population of 111,770 people housed in hotels, hostels and self-catering by the Government.

Increase in number of IPAS (International Protection Accommodation Service) migrants to be housed as they found Ireland the easiest way to enter the EU from the UK. No clear data on the number of people in IPAS system in Ireland, now managed by the Department of Children, Equality, Disability, Integration and Youth (DCEDIY)

 

Any Empty Government Properties in Ireland?

 

Planning Issues in Ireland 

  • Lack of Clarity on Planning for STR – Promised Guidelines on Planning for STR need to be published and agreed, and separately Glamping Guidelines to allow new STR tourism stock replacement and development.
  • New Planning Requirement for all STR – Many STR cannot apply for Planning at present as in areas of Country marked RPZ such as Kinsale Co. Cork and would not get planning, no matter how long in businesses. Government proposals to require all existing Self-Catering  to apply for Planning in Ireland will be costly, block up the Planning offices and there is an expected loss of stock as a result. The ISCF expects many properties to go into the black market as a result, and a serious loss of tourism income in 2026.
  • Short Term Rental is the second largest provider of tourism accommodation in Ireland according to Failte Ireland data, due to lack of viability of hotels in rural area.  There has been a loss  of beds in hotels, hostels, BnB , Guesthouses and STR ( 3400+ Units according to Minister) due to long-term Government contracts.  Post -Covid there has been closure or STR due to pressure or Rent Pressure Zone legislation or family remote working. This stock needs to be replaced linked to LEA Development Plans and Tourism Development Plans. Many Greenways are being developed with no planning for accommodation of the cyclists.
  • Lack of Planning staff- There are up to 50% staff shortage in Local Authority Planning Services across Ireland, according to Galin Lawlor ( CHair IPA). Planning regulations  is controlled centrally for any scheme over 14 units, making the system is very slow, with all developments of over 14 units needing a 4 step planning which can take years. The plannig application has been stalled in in many cases for developemnt due to Judicial reviews centrally,  paralysising the system according to Government debate, and central Government is now extine planning permisson by 3 years to allow for this issue on 27/5/2025. Fines for delayed development would not work in Ireland according to experts.  Lets build housing, particularly apartments in urban areas.
  • There should not be an Amsterdam style regulation, which has been shown not to reduce the cost of housing  at the cost of the rural tourism industry.
  • For developers planning is presently impossible with most builds being turned down for housing development. At present many developers are being turned down for housing development due to lack of utilites.
  • The Junior Minister for Housing stated in the Dail on 14/5/2025 that under the ‘Housing for All’ government plan will have a new Housing Plan for Ireland and developed a solid platform to ‘scale-up’ delivery of housing in the short term. The planned implementation of the Planning and Development Act 2024, the Ministerial Action Plan on Planning Resources and a Revised National Planning Framework  with a reform of the planning system in progress. There was a lot of debate in the Dáíl on housing, planning and infrastructure issues. But where are the Guidelines for STR PLanning as promised by Minister Browne in April Guidelines for Glamping Development, for Farm Diversification and Rural Development

 

Other Issue’s in Relation to Housing

  • Proposed Population Cap for STR – Paul Kelly CEO of Failte Ireland stated  the Short Term Letting and Tourism Bill was published by the Department of Enterprise, Tourism and Employment (DETE). This bill will provide the statutory basis for the establishment of a register for short term lets and for the implementation of the EU Short Term Rental (STR) Regulation.  Eoghan o Mara Walsh CEO of ITIC stated that the  short term letting bill which means that from this time next year anywhere with a population of over 10,000 may have no self catering properties or Airbnb’s. In relation to the latter there is a way to go on this and the tourism industry will be pushing hard to make sure regional and coastal Ireland is not denuded of critical tourism accommodation stock. This is particularly the case when many group schemes of accommodation are already gone to Government Refugee Contracts.
  • Rural Development – Since 2023 there has been a lack of Government Guidelines for development of Rural Housing, allowing people to build on a family farm or rural area. Due to lack of Clarity on Planning few developments of family homes have been allowed, causing those working the farms to move to urban areas and commute to the farm, which is not the traditional way of life in Ireland. Guidelines for Rural Farm Diversification to allow conversion of buildings and development of STR on farms to support sustainable tourism development.
  • Ghost STR Existing Planning -Remove Properties with Ghost STR Planning, these properties may be long-term lived in, permanent homes, 2nd homes, on Government contract long-term and no longer in STR market. Government contracts account for 47,825 people staying in Guesthouses, Self-Catering and Bed and Breakfast Accommodation in November 2024 while only 17,632 are accommodated in hotels on same date. Each LEA needs to do this. At present this option has only  given to hotels who may also choose not to re-open for tourism and move to an IPAS System removing any existing tourism beds from a town or village longterm.
  • Proposed Planning Restrictions – The Irish Government propose restricting planning in areas with a population of a high density – above 10,000 and bring in an Amsterdam style solution. Amsterdam’s urban population 2,457,018 in June 2024, with these punitive restrictions found not to have worked. Discussion at Parliamentary level on what should be considered  high density areas in Ireland city’s should be much higher than towns with a population of 10,000. Killarney Irelands Tourism Capitol has a population of 15,500 people and is dependent on tourism income.
  • In Gaeltacht ( Irish Speaking Areas) due to this lack of clarity and infrastructure development in rural areas of the west Coast Irish Speakers cannot buy homes and are being priced out of the market by 2nd home buyers for existing stock. This is leading to loss of core Irish language families in Gaeltacht, and many areas do not allow Short Term Rental due to RPZ regulations. A Register would give clarity on the STR Housing Stock in these areas.
  • Older Home Owners – The Government has suggested older people who have raised their children to downsize, allowing families to live in those homes. This does not allow for the fact that there is little supported older accommodation in Ireland for older people to move to. There is no inventive to move and support for older people who have paid a mortgage and may be expected to take on quite a large mortgage for a much smaller unit.

 

 

Reasons to be Positive

The SME Business offering Short Term Rental accommodation are the backbone of the tourism offering in rural Ireland. With the Ryder Cup coming to Adare in 2027 some are re-roofing the thatch cottage which complement the nearby Adare Manor where the event will be held. There needs to be a Registration system for STR, not linked to planning for existing stock. The false deadline on Planning for STR which the Government is linking to a Register is like using a hammer to crack an nut ( or group of SME women in business)

 

Tourism development was seen as one of main drivers of rural economy by Enda Kenny Minister for Tourism (1994-97) with a lot of investment, particularly in Self-catering. The Wild Atlantic Way route along Irelands west Coast is 11 years old, and has been very positive in bringing tourists to the more remote regions of Ireland.   The majority of listings on Airbnb are for entire homes with a high concentration in tourism hotspots along the Wild Atlantic Way, inner city Dublin and Galway. Politicians in Kerry, one  of the Wild Atlantic Way countys , where tourism is the main source of income have strongly voiced opinions on the importance of a balanced approach to short term lets legislation.

 

There needs incentives to develop new sustainable tourism offerings in rural Ireland as well as clear and positive planning guidelines for new business, linked to tourism  infrastructure development. There needs to be a balance between tourism and permanent accommodation needs, not blaming the STR sector for Planning Issues, the economic crash in 2008 and the lack of skilled labor force to develop permanent housing. The Government needs to quickly refurbish all social housing stock, supporting Local Authorities to do so.

 

Compiled by: Máíre Ní Mhurchú, CEO Irish Self-Catering Federation 24/5/ 2025

 

Profiling Short-term Let UsageAcross Ireland

Report
Profiling Short-Term Let Usage Across Ireland – ESRI -4/2025

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