ieExplains: How will restricting Airbnb-style short-term lets affect housing supply? 

Short-Term Letting and Tourism Bill 2025 proposes to curtail Airbnb-style short-term lets to free up properties that could be rented by people living in an area rather than tourists

The Government is not seeking to ban Airbnb outright but rather to restrict its use. Picture: iStock

After years in development, the Government is restricting short-term lets, commonly known as Airbnbs.

The Short-Term Letting and Tourism Bill 2025 is being introduced alongside planning regulations that will restrict where short-term accommodation can be located.

But what exactly is the Government proposing, and what will its impacts be?

Is this an end to Airbnb and other short-term letting platforms in Ireland?

The short answer is no. While the Government is seeking to restrict its use, what is being introduced will not outright ban them across the country.

The biggest change applies to larger towns, with restrictions covering areas with populations of more than 20,000.

In these areas, local authorities will be barred from granting new planning permission to convert properties into short-term lets.

This will apply in cities including Cork, Dublin, Limerick, Galway, and Waterford, as well as large towns such as Dundalk, Drogheda, Swords, and Tralee.

Smaller tourist towns, such as Cobh and Killarney, will remain eligible for new short-term lets.

What does the legislation require short-term let operators do?

The new rules will place a number of requirements on short-term let operators, including the need to ensure they have the appropriate planning permission.

While this has been a requirement for a number of years, enforcement at local authority level has been limited, meaning many properties have operated without permission.

Housing minister James Browne said a two-year grace period will be provided to allow operators to regularise their their affairs and get planning permission, particularly in towns with populations of more than 20,000.

The legislation will also introduce a national register for short-term lets, to be overseen by Fáilte Ireland.

Anyone renting out a property for more than 21 days a year will be required to register with the tourism agency.

In addition, a “grandfathering” provision will allow properties that have operated without planning permission for more than seven years to apply for retention.

Why is there such criticism of short-term lets?

Critics say it has reduced housing supply, as properties that could otherwise be sold or used for long-term rental are instead used for short-term tourist accommodation.

Mr Browne said that while he would like to see as many homes as possible returned to the sales and rental markets, short-term lets play an important role in the rural economy.

He said the income generated helps sustain local communities and argued there needs to be a balance between tourism and housing.

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However, the plans have been criticised by opposition parties, with Sinn Féin’s Eoin Ó Broin describing the inclusion of a grandfathering clause as “another weakening of an already questionable regime”.

“The short-term letting regulations should impose a strict regime in urban areas to ensure that all homes with planning permission for long-term residential occupation are returned to that use,” Mr Ó Broin said.

• Tadgh McNally, Political Reporter