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Proposed new rules from June next year will mean increased regulation for the short-let sector

Under proposed new rules due to take effect from June 2019, owners of buy-to-let properties will have to apply to their local council for planning permission in order to let their property on websites, such as Airbnb.

People who look to rent rooms in their own house are due to avoid these regulations once the house is not let for more than 90 days a year.

The new rules are being introduced against the backdrop of the worst housing crisis in the history of the State. The move follows concerns that landlords are moving away from offering their properties on long-term lets to tenants in favour of short-term lets to tourists, particularly in areas of high demand like Dublin.

The move will mean that buy-to-let landlords will have to pay a fee and apply for a ‘change of use’ planning permission from their local council. The council will have to power to accept or reject the application based on the housing needs in the area.

It is expected that approvals in areas of high housing demand will be severely curtailed meaning that it will be illegal for properties that have been refused permission to be let on Airbnb and similar platforms.

The legislation to give effect to these changes is yet to be approved by the Dáil and so how the application process will work has yet to be finalised.

Date published 26 Oct 2018

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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