Housing Data in Ireland 2024

Housing Data in Ireland – for EHHA

Owning a home is the norm in Ireland with people expecting to have their own home to pass on to family members in their will. Social housing ownership was allowed to be bought out rather than continue renting in 1973 with two-thirds of all council houses ever build privately owned in 2022. Housing stock increased by more than 5% to 2,112,121 between April 2016 and April 2022 though the population increased much quicker. There was a significant increase in the number of households with people aged 65 and over renting from a private landlord to almost 17,000 households, up 83% since 2016. The average weekly rent in private rental accommodation increased by 37% between 2016 and 2022. The number of occupied dwellings increased by 8% to 1.85 million while the number of vacant dwellings fell by 11% to 163,43

Figure 7: Seasonally adjusted new dwelling completions by type of dwelling Q1 2016 – Q4 2023

There has been an analysis by academics on the reasons for housing issues in Ireland by academics:

• Temporary accommodation for Refugees is the largest cause of pressure on housing.
• Little or no Social Housing being built and Shortage of Affordable and social housing to recently.
• Purchase of houses and apartments built by future and pension funds as investments.
• Pushing people who used to depend on social housing into rental housing and no security of tenure as rents increase, despite the RTB being developed by the Government to manage long-term housing. This in turn is causing homelessness in urban areas.
• The Government is funding housing by underpinning payment of long-term loans for urban housing stock, as a result of the property crash in 2008.
• The first time home ownership was at 26 yrs of age in 35 yrs of age+ and now that is in early 40s for most families. This in turn puts pressure on the housing rental stock.
• Since Covid many employees are working from home rather than office based, and with quality Wifi many people have returned to family base in rural areas, with many buildings being upgraded for long-term for accommodation by the next generation.

There Tourism Policy needs to reflect the UN Sustainability Goals 2030, and self-catering in all its forms from houses to regenerated old buildings and old village shops or glamping on a greenfield site will all aid in this when associated with sustainable practices. This will allow for more disparate rural employment and economic benefits to areas which have been damaged by recent Government policies such as RPZ sones, lack of clarity on planning guidelines or support for SME and Micro tourism businesses.

Ireland does have a housing crisis caused by a variety of reasons

Building Planning System in Ireland – The Planning systems in Ireland is managed at local level by City and County Councils, with Local Development Plans (LDP) being the main focus. There is little correlation between these and the Tourism Destination Development Plans (DEDP), and the economic value of tourism is not a central focus of many areas. The Planning systems are slow (12months to 3 years), adversarial, expensive and seen to be a negative experience for individual house builders, developers and tourism enterprises. There is also some corruption, causing An Bord Pleanala (the national organization that local planning decisions can be objected to) being re-structured repeatedly by the Minister for Housing in 2022- 24. There was a backlog of over 1,000 decisions outstanding in June 2024

Building Experts – Due to the Economic Crash in building in 2008 most of the expert, younger housing tradespeople moved to other countries, and there is a lack of plumbers, plasterers, electricians, engineers, architecture, and all building tradespeople. This means the build time in Ireland, even for kit houses takes much longer than mainland EU. This infrastructure has to be re-built, with increased trades courses as well as university degrees which have been the Government focus for the past 20 years.

Social Housing – The Government has not built social housing since 2008 when we had a property crash. Social housing building has been devolved to Local area councils, who are the designated housing authorities by the Housing Acts. The Councils had stopped building houses or apartments after the crash until the present Government who I built 11,939 houses in 2023 throughout the country.

Cost of Accommodation – Due to the lack of buildings particularly in urban areas, the restriction of types of accommodation such as bedsits no longer allowed to rental market, the pressure on accommodation in urban areas the price has gone up. As many STR units were removed from the market due to Rent Pressure Zones (RPZ) in Dublin in 2019, and now RPZ areas covering 86%+ of the housing of the country, the cost of hotel rooms have gone up up up. This affects rural festivals, events, sports in the capitol and a wide range of visitor attractions. The situation is such that inbound Tour Agents in the bus tourism sector cannot offer hotel accommodation in Clare, Galway, Donegal, the midlands and southeast of Ireland. Group tourism travel is seriously restricted, and with the removal of many groups of STR in coastal areas to Gov. Contracts the companies have to restrict their sales. The choice of accommodation in hostels, Guesthouses, BnB has been restricted as well. Due to the lack of BNB accommodation in 2024 BnB Ireland the independent industry group who managed the sector has closed down.

Clear Housing Data – The GEO Directory gives clear data on Residential buildings in Ireland, based on postal addresses. The Minister for Housing has repeatedly given data on housing projects started, which does not clearly state the number of units completed. This has
caused a lot of friction at Parliamentary level, which his figures in Housing for All being questioned.

As there is no Register for STR all of which are economic tourism units apart from the Registered tourism accommodation (Hotels, Campsites) are considered unregulated accommodation. The housing stock of 2,151,247 residential dwellings also included STR properties.  Some clear data on Holiday Homes (maybe STR or 2nd Homes) as well as vacant homes.

Once the Register for STR is in place and all existing Self-Catering, Glamping, Shepherds Huts, Cottages and Castles in the Short-Term Rental Sector are clearly calculated we can then see where there is a possibility of development of the sector, with standards and quality assurance. The ISCF has called for all existing STR registered to get a Derogation, and then all new properties to be intruded into the industry to have A TAL (Tourism Accommodation Lets) Designation at planning level. Trying to Close down existing STR in Ireland will have a very negative effect on rural areas of Ireland, already under pressure with so many properties on Government Contracts. Most counties along the Rural Wild Atlantic Way would be affected

 Data Scraping – All data used by the Dept of Tourism to support closing down Self-catering units is based on data scraping by Failte Ireland in 2022 and the same data has been sent to the EU repeatedly to identify possible housing units which could be used as long-term housing. This data has been part of the ‘Housing for All’ narrative to show it can house the population. However most housing is needed in urban centers, and the accommodation is mostly in rural areas. This accommodation is also privately owned and in a survey of members of ISCF most are owned by women over 45 yrs of age, these micro businesses their income/ pensioning 89% are not willing to allow long-term occupancy or houses are not suited to long-term occupancy due to age, quality or site.

(Failte Ireland Data Link, Housing for All, ESRI Data.

The CSO Data for 2022 found that Rental properties accounted for over one in five (33,653) of the vacant dwellings identified in the census. For context, there were over half a million occupied rental properties, suggesting approximately 7% of rental properties were vacant on Census Night. This figure could include short-term lettings and properties that were between lets but may not have been advertised, with no differentiation between 2nd homes and rental properties.

ESRI Housing Data – the Economic and Social Research Institute sees all housing in Ireland as homes and does not factor in economic value of housing units as Self-Catering in any of its data. Details of vacant housing as gathered in the 2022 Census are based on Power use and does not discriminate between 2nd homes (There are many in coastal rural areas) and STR Rental units. There is no clear data as a result.

Population and Economy – Ireland’s population has increased to over 5 Mil people for the first time since the famine in 1845-48. We had constant emigration from then to the late 1990’s.  The Republic of Ireland is a highly developed knowledge economy, focused on services in high-tech, life sciences, financial services and agribusiness, including agri-food. Irelands economic development has brought workers from all over the world to Ireland working in tech companies, Pharma, with services at 84%, industry 11% and agriculture at 5%, Tourism at 13% (as part of services sector).  The population has traditionally been mobile, moving to urban areas for work. The average gross salary is €4002. Since Covid there is a lot more remote working with higher pressure on housing in more remote rural areas, as well as the urban areas.

One off Housing Building – House building for middle class and those who can afford to build their own home on family land has stalled due to a chaotic planning system which has stagnated house building, particularly in rural areas. Children cannot build or renovate on the family farm or business.

Purchase of Apartments Building in Dublin – Houses and Apartments (78%) are mostly being build in Dublin. They are being sold not to individual owners but to Pension funds,
Vulture funds or companies such as Ryanair for housing staff. The rental cost of these properties are therefore very high.

Refugees and Government Contracts – The Irish Government has taken in over 100,000 Ukrainian Refugees and now economic migrants. The Government humanitarian aid has to be lauded, but the  housing for these people has been chaotic with the Dept of Children, Equality, Disability, Integration and Youth policy has been to house people in any available properties, with no communication with Tourism Dept or industry as they take contracts with hotels ( mostly 3 star, but some 4 star), hostels, Guesthouses, BnB, groups of Self-Catering ( Coastal Section 23 Scheme units build in 1908s- 90) to house people. Most of these are in rural areas, rather than urban centres with most 3 star hotels removed from the tourism offering As these hotels have earned  income for the past 2 years, many are now finishing the Government contracts, refurbishing and the people being put into Self-catering and other rural accommodation in the same area. This has put severe  pressure on other tourism providers from Restaurants, cafes, pubs, music venues, activity providers who are closing businesses due to the difficult trading situation and lack of regular tourism.

Data from Failte Ireland in May 2024 stand that 32.4% (25,079) beds are in Failte Ireland registered properties while 67.6%  ( 52,234) beds are in non-registered mostly self-catering units. The fact that any building can be turned into accommodation for Government Contracts, with no planning restrictions. With Gov contracts not being renewed by hotels after 18-24 months there are more and more self-catering units in coastal areas being contracted by the government, with a constriction of the tourism accommodation offering.

Rent Pressure Zones – These were introduced by the Irish Government as a way to control Short Term Rental in Dublin and other urban areas in 2019. They have not spread to over 86% of housing in Ireland, including whole counties such as Dublin, Limerick and Waterford This legislation means that if a self-catering business does not have the correct STR planning designation, which 70% do not due to cost or it being introduced after they s.et up the business. The business cannot get planning permission, no matter how long they have been in business once the RPZ designation is in place. This is true for tourism towns such as Killarney, Kinsale and Westport as much as Dublin City Centre.

The TAL planning proposal should replace the Rent Pressure Zones legislation which has discriminated against micro- businesses in favor of hotels. As can be seen from proposed development for hotels, most are international chains, whose profits will go overseas, as compared to self-catering SME family business who bring the income and economic benefits to their own area. The Belgian Government have been taken to Court under the non-compliance with the European Services Directive, which governs freedom of enterprise. A similar case could be made in Ireland, as SME owners are discriminated against, and funding provided to Co Councils to enforce these regulations.

Social Housing – The Government has not built social housing since 2008 when we had a property crash. Social housing building has been devolved to Local area councils, with little funding. The Councils have stopped building houses or apartments for residents in the past 20 years, in most parts of the country.  Most people in social housing aspired to own their own home. Houses built as social housing should not be included in the STR offering, as they have been built as permanent homes.

Student Accommodation Building –

There are many student accommodation groups which have been given grant funding by the state to develop in the area of university and college campuses with proposals to increase beds by 500 in May 2024. These units should be available as STR rental in summer months, Registered for STR Bill and clearly offering accommodation in urban areas.  This accommodation should complement other Short Term rental accommodation in these areas, and not be the only offering.

Vacant Housing – Dereliction and vacant housing is a serious issue in Ireland, with much of it in rural Ireland. The Government has brought in grant supports to encourage renovation of vacant and derelict houses in Ireland with grants up to €70K. The money is approved by local councils and paid after the work is completed. Those who renovate a property have to borrow the full amount needed to renovate a property, and banks are very risk averse particularly when there is not a viable asset to give a loan against. The number of vacant properties returning to the housing market has been disappointing for Government as a result, the timescale for such development is over 2 years as planning is expensive and takes a lot of time. These houses cannot be used for STR.

Diagram Vacancy by Area 2022

Centralized Housing Development Policy

The Housing control of development in Ireland is nominally local with councilors local development plans in charge under the management of the local Authority Chief Executive. But as can be seen in this video on housing policy local councilors, administrators and citizens are frustrated.  The effect on a rural town of Ballina Co Mayo shows why there is a lack long-term accommodation it is overpriced and having serious affects in rural Ireland. Funding for Social housing has been removed from local agencies and at the same time they are expected to build housing

central government with local administration. This has no relation to Short term accommodation in this issue. At the same time Government Contracts, RPZ’s, lack of development planning guidelines for STR no funding supports during Covid, or since for the sector have all reduced the sector stock. It is time to change this attitude to Self-Catering in all its forms from agritourism, apartments to cabins, castles, glamping pods, farm units, off-grid cabins, shepherd huts, yurts and other short term accommodation contribute to the economy, offer a wide range of accommodation and employment all over Ireland.

(YouTube.com/ watch?v-XQnFrJ8S94M)

Conclusion

ISCF Proposals for Development of Self-Catering in Ireland

The self-catering sector is part of the tourism industry and needs to be treated as such. Clear data on the industry, with entry to the sector accessible from a business and planning perspective clearly stated. The ISCF proposes the following: –

1) Introduction of the Register for STR as soon as possible to meet our EU obligations. This should not be linked to planning requirements outside high density urban areas.  In high Density areas consideration should be given to all businesses who have been trading for 5 year or more, have been registered with the ISCF or Failte Ireland and can prove have been in business.

2) Planning derogation for all who can prove have been in business as STR when Register for STR is introduced with above conditions.

3) Tourism Accommodation Lets (TAL) planning for all STR businesses who wish to open. Link STR as an accommodation option in the Local Development plans in rural and urban areas, making this included in all development plans now, not in 5 years when the next development plan is in place.

4) Support and protect rural family tourism businesses – with funding support for diversification and farm business development.

5) Clear development plans to support Self-catering on the island of Ireland.

6) Identify and value the economic value of Self-catering in Ireland, at ESRI level and in tourism development, which has been very focused on hotels. New hotel development is not viable in Ireland outside the urban areas of Dublin, Cork, Galway and Limerick. Development of STR needs to be included into the development of tourism projects such as Greenways or facilities such as the National Surf Centre in Sligo. The Economic report of Jim Power is the first South of Ireland, and an All-Island report would give a perspective on proposed development. Support for self-catering business development linked to events such as Ryder Cup 2027 or EU Football in 2028 should be encouraged.

The Self-Catering sector is very undervalued and undeveloped in Ireland. We have the land, the entrepreneurship and with clear Guidelines for Planners and owners or developers of STR and clear economic development in both rural and urban areas of Ireland.

Full report available on request

Links to Data and information on Housing in Ireland