The Housing Minister is to propose restrictions on short-term rentals next week.
It comes as concerns have been raised over the number of short-term rentals compared to long-term.
Currently, there are over 3,000 properties available short-term in Dublin on sites such as Airnb and only 1,200 for renters on other sites.
Labour Senator Kevin Humphreys who introduced a bill to regulate the sector says action needs to happen now.
"If we bring in legislation and regulation in relation to the short-term let market, we could see up to 3,000 additional units coming back onto the market where working families will be able to rent them
"This has been impacting - especially within the Dublin, Galway and Limerick area - for a considerable amount of time and the government has failed to move.
"So hopefully now with the announcement from Minister Murphy we will begin to see real progress."