Timing of short-term letting regulations an 'impossible challenge' for small operators

Fiona MacConnacher, head of public affairs for the UK and Ireland at Booking.com, will tell the Oireachtas enterprise committee on Wednesday that it has concerns about the timings of the introduction of regulations. File picture

Short-term lessors face an “impossible challenge” to comply with new regulations due to a lack of certainty of timelines on planning rules, according to a major online booking platform.

Fiona MacConnacher, head of public affairs for the UK and Ireland at Booking.com, will tell the Oireachtas enterprise committee on Wednesday that it has concerns about the timings of the introduction of regulations.

Proposals from the Government would require short-term letting operators to get change-of-use planning permission and register with Fáilte Ireland.

There will also be restrictions placed on short-term lets in towns or cities with a population of 20,000 or more.

This was initially expected to be 10,000, but the Government rowed back amid internal pressure from ministers Norma Foley and Michael Healy-Rae.

These restrictions will essentially prevent operators from seeking change-of-use planning permission to let a property on a short-term basis. Ms MacConnacher will say:

Our concerns are not with the principle of registration and transparency.

“Rather, they relate to how the proposed Irish measures will be sequenced and implemented — particularly the link to the planning systems, the timelines for compliance, and the proportionality and practicality of obligations on platforms and small operators.”

Ms MacConnacher will raise concerns that a national planning statement on short-term lets is yet to be published. She will say that operators do not have certainty over the planning rules which will be in effect, and will add that this does not guarantee whether they can continue to operate.

After the planning process, short-term lessors must register on a digital system which is “not yet available or fully tested”, Ms MacConnacher will say.

“For many small operators, particularly in rural and coastal destinations, this is an almost impossible challenge.

"There is a serious risk that a significant share of existing stock will fall out of compliance or be forced to cease operating, not because operators are unwilling to comply, but because the system is too complex and the compliance window too short.

This raises genuine concerns for both operators and travellers, especially given how close these changes are to the peak summer season in Ireland.

Ms MacConnacher will say that there would be “profound” impacts on the tourism sector if that scenario were to pass, including fewer places to stay in “supply-constrained areas”.

She will add that there is “no evidence” that properties leaving the short-term rental market would enter the long-term rental market.

“A long-term rental and a short-term rental are fundamentally different business models,” Ms MacConnacher will say.

“In most cases, the properties in question were never part of the long-term rental stock to begin with.”

The Irish Self-Catering Federation’s chief executive, Máire Ní Mhurchú, will tell TDs that a survey of its members showed that 90% would not return their houses to the long-term rental sector.

Tadgh McNally is Political Reporter.