Is Self-Catering the Cause Irelands Housing Crisis?

Did AirBnB  cause Ireland’s Housing Crisis?

The ESRI published a report of new research on Profile of Short-Term Lets in Ireland in April 2025. This was funded by the Department of Housing, Local Government and Heritage in order to provide insights into Airbnb usage across Ireland. This study aims to deepen our understanding of the short-term let sector and its interaction with the private rental sector. The report suggested short-term let activity is not the primary cause of falling new rental commencements or the lack of available rental accommodation nationwide. It found that there was a strong link between current Airbnb listings and previously recorded holiday home offerings. 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.

 On  12/6/2025 on @TodaywithClaire with Minister Michael Healy Rae the importance of Self-catering ( STR) to rural areas and tourism towns such as Killarney was discussed.  STR did not cause the housing crisis and is not the solution and this has been confirmed by the ESRI report.

However in the same interview Rory Heane TD, who previously wrote a book on the causes of the housing crisis in Ireland called Gaffs has now stated that STR is to blame for the crisis and  for the following:-

   * He stated that Banú the Irish Language group looking for housing in Gaeltacht areas is against Airbnb.  

Incorrect.  Banú are against lack of clear planning for Gaeilgeorí who cannot get permission to build in the place they were raised.

• People over 18 living with parents is due to lack of housing.

Incorrect.– a lack of apartments in urban areas, at reasonable price is the cause.

• Provide beds for staff of hotels –

Incorrect– make hotels responsible for accommodation for their own staff, let them stay in the many lodges built on hotel grounds.

What is the Self Catering Industry in Ireland in 2025

They are legitimate businesses, mostly run by women aged 45 yrs of age or older and this is their primary income.  It is found mostly in rural areas which depend on them for providing tourism accommodation in areas where hotels are not economically viable.  These SME businesses  have developed over decades, and allow families to run businesses providing a vital part of the rural tourism infrastructure.

They are businesses who pay taxes, refer guests to the local activity providers, pubs, transport companies, restaurants, cafes and shops. In towns such as Clifden and Schull they are the economic driver of the area for many other small businesses.

The economic value of self-catering is greater than hotels and a study has found that for every €25 spent on STR beds, there will be €75 spent per day in the local areas, benefiting many more businesses.

Register for STR

The Self-Catering Tourism Register Lets  (STRL) is the latest Government proposal to manage the SME tourism businesses in Ireland. The register will be managed by Failte Ireland as the national statutory body. The ISCF have been calling for a register since 2017 and welcome clear data on the number of STR units in Ireland. The Register needs to be in place by 5/5/2026, based on the EU Register for STR.

The problem is that the Government in Ireland is adding a pre-requisite planning permission for STR. There are no clear Planning Guidelines for STR, though this has been promised by the Dept of Housing.

The effect of the present proposals will  close down STR again and we have faced legal uncertainty since 2019, with little or no planning permission being granted for new STR businesses.

 At present over 80% of housing in Ireland are in Rent Pressure Zones (RPZ). Planning for new self-catering businesses is not given in these RPZs  or permission to have the now required STR planning is also not given. The STR planning has been issued mostly to group schemes, STR on hotel grounds and not to individual properties. The STR planning can also have unintended consequences for the sale of a property with a decrease in value and in most cases no longer allowed as long-term accommodation, in case of people who want to upgrade such properties.

In the past 2 years there has been a loss of over 3400 self-catering units as they have gone to long-term Government contracts in villages like Waterville and Caherciveen and the previously viable rural tourism economies have now hollowed out.

What Is the Way to Resolve Crisis? 

Stop mixing the EU Register for STR Bill which needs to be in place by 4/2026 with a requirement for planning permission for all existing STR. We need a clear Register for Data on existing businesses, not close them down. The severe restrictions on Self-Catering should be scrapped. 

Provide a Register for STR to provide a baseline for Self-catering and all other Short Term Rental accommodation. Allow existing SME family businesses to continue in businesses and have clear planning guidelines for all new STR to develop, with the same rules for all parts of the country. The regulation in high density urban areas may need to be more restrictive, but development needs to be permitted in a similar way to hotels, aparthotels and hostels. There are few Bed and Breakfast or Guesthouses opening in Ireland these days due to restrictions.

Create a Register for data gathering on all STR – which can give clarity on the number of tourism beds available in all parts of the country at all times. This does not affect rental of beds in primary private residence (PPR) for up to 90 days – this is not the professional tourism offering.

We need clear data, evidence and clear policies to support tourism. Provide a clear positive policy for the tourism industry to retain existing businesses and develop new STR. Provide support for existing and new rural jobs based on tourism.

Use Data and not threats, ‘Housing for All policy’ or lack of constructive housing planning policy to drive constructive decisions. Advising us that an Amsderdam style approach to STR is negative and research shows that it does not work with :-

• Increase in cost of longterm rents by 34%
• Hotel prices have rocketed by 60%
• In New York restrictions since 2023  has failed to improve the housing availability

Respect the role of SME tourism businesses. We are an interdependent ecosystem with the many local businesses from craft shops to cafes and visitor attractions all benefiting from the income. Tourism is the largest indegenous employer in Ireland and needs to be supporter, particularly at a time of international turmoil. Data from CSO in March shows that tourism numbers were lower that previous years, with most people staying with family or hotels. This may be due to St Patricks Day events held mostly in urban areas

Lets build housing, particularly apartments in urban areas. Lets not choose one type of accommodation at the cost of the rural tourism industry

Profiling Short-term Let UsageAcross Ireland

Need More Information?

If you or your guests have any further questions about car hire in Ireland or using the Europcar discount for ISCF, please don’t hesitate to reach out.

Contact us: Send an email to info@iscf.ie, and we’ll be happy to assist you.

ISCF Join Now

Map of Eurpcar Garages in Ireland