MEP Calls for Short Term Letting Bill to be Reviewed

MEP Calls for Review in STR Bill to Protect Rural Ireland

The ISCF supports the introduction of a Register for STR, which will collect data across all EU countries and was approved at EU level on 19/04/2024 and  to be introduced by April 2026. The issue in Ireland is in relation to planning for existing Self-catering businesses. The ISCF has called for a Derogation for all existing STR businesses, allowing them to Register without fear.  Consultation with self-catering business owners needs to take place to have a workable solution, as is being done with the farming lobby.

On RTE Radio 1 Drivetime  on 29th July an interview took place with Cynthia ni Mhurchu MEP Ireland South and Rory Hearne, Lecturer Applied Social Studies, Maynooth University. Cynthia Ní Mhurchú  MEP said that government risks triggering a tourism crisis in rural Ireland in their

efforts to solve the housing crisis with the Short Term Lettings bill. The newly elected MEP has described the bill as ‘not fit for purpose’ and claims it is already damaging our rural tourism industry.  Cynthia has called on the government to rethink the Short Term Letting bill saying that while it is well intentioned, it will damage the tourism market in rural Ireland.

‘There are flaws in the bill that mean that while it is certain to do damage to rural tourism in Ireland, there is no guarantee that it will bring about the     intended release of properties back into the long term rental market.

“There are absolutely no guarantees that those short term rental properties that are forced out of the tourism rental market will rent out their properties on the long term rental market. Many of

the the tourism providers that I have met with say that their properties are not suitable for the long term market or that they have no interest in letting out their properties on a year round basis. We have no evidence that points to the fact that this bill will bring 10,000 properties back into the long term rental market. We do know that taking 10,000 short term lets out of our tourism market overnight is sure to damage our rural tourism industry”

Cynthia Ní Mhurchú criticised the fact that this bill has been hanging over tourist accommodation providers for almost 3 years creating a sense of uncertainty in the market.  “Uncertainty is damaging tourism providers who are unsure as to whether they can take bookings for the summer 2025                                                                                          period or not. This uncertainty is causing great stress and anxiety to tourism providers and is already having an impact on a tourism market that                                                                                              typically takes bookings up to 12 months in advance”.

 Cynthia Ní Mhurchú says the short term lettings bill is well intentioned and may be more suitable to Irish cities but that its impact on rural Ireland’s     tourism market has not been taken into consideration. Ní Mhurchú says that tourism providers are already under significant pressure given the cost of  living crisis, higher VAT rate and poor summer weather.

C. Ní Mhurchú pointed to the views of Dr Sarah Hamill of the School of Law at Trinity College where Hamill said that this bill “won’t increase long        term rental supply”. Ní Mhurchú has now called for a rethink of the bill and an examination of new ways in which the owners of properties could be      incentivised to switch their focus to the long term rental market if their property is suitable.

M. ni Mhurchú CEO of the ISCF stated ‘Before the Registration Bill is introduced there needs to be clear Planning Guidelines for Planners and Owners  of STR. A specific Tourism Accommodation Lets (TAL) planning could be  introduced for STR and there needs to be funding support for the                                                                                                     development of STR and retrofitting of existing businesses, in a way similar to farmers supports’.

SME self-catering business owners need clarity now so we can take bookings in confidence for the 2025 tourism season. Scotland has an equally            troubled relationship with legislation and data shows that there has been a serious decline in the number of businesses. ‘We do not want self-catering    owners to enter the black market which is completely unregulated. We know that banning Airbnb and other platforms will not increase housing  in the  areas needed, is very costly to enforce and degremental to rural economies’  stated M ní Mhurchú.  This legislation will have a serious                                 impact on tourism particularly in rural Ireland and needs to be clear in its aims.

 For more information contact:

 ISCF.ie ISCF Office, Durrus, Co Cork – info@iscf.ie 086178 5654