WITH weeks to go before the proposed Short Term Letting and Tourism Bill comes into effect, operators still don’t know if the register will be introduced or the impact it will have on the sector.

If passed into law, the Bill will see the introduction of a mandatory national registration system for short-term rentals in Ireland from May 20th managed by Fáilte Ireland.

It is aimed at regulating listings, enhancing data collection, and ensuring compliance with EU rules, with severe penalties for those found to be non-compliant.

The Bill was formulated following an EU directive on short-term rentals, and the Irish government is now obligated to have a national register of an estimated 35,400 self-catering properties.

Confusion about the legislation and its implementation has, according to industry sources, led to an exodus from the self-catering sector because operators fear it would be illegal to operate without being properly registered.

According to Máire Ní Mhurchú,  ceo of the Irish Self-Catering Federation (ISCF), there has been a gradual loss of tourism beds over the last 25 years, particularly in rural areas and small towns. She said the drop off can be attributed to the selling off of some tax-scheme self-catering cottages after they reached their tax maturity.

Meanwhile, she said many urban B&Bs are being used as homeless accommodation.

Since 2021, many houses have been contracted to local councils, sometimes providing accommodation to asylum seekers and refugees.

Covid had an impact on the sector with many adult children returning to the family home, or renovating part of B&Bs and self-catering cottages, which led to further losses to the market.

‘At a time when there is global uncertainty, particularly for the tourism industry, the self-catering sector needs to be certain the 2016 season can go ahead,’ said Máire.

Long-term, she agreed there is a need for a register. ‘Gathering data on the bed stock of an area is essential to understanding the economic value of self-catering,’ she said.

But, this year, the ceo said operators need clarification and assurances because the owners of many self-catering properties have decided to sell up rather than contend with the difficulties of getting planning permission.

‘The government now proposes to bring in a new register for short-term rentals in Ireland, but wants to link it to having short-term rental planning permission, which is difficult to get at present due to Rent Pressure Zones legislation.

‘There has been a deafening silence from the Department of Housing, no consultation with the Irish Self-Catering Federation, or other relevant bodies and no National Planning Statement for short-term rentals to clarify on how we can continue in business when a register for short-term rentals is linked directly to having planning,’ she claimed.

She added: ‘The proposed Short Term Letting and Tourism Bill in its present form is unworkable and unenforceable.’

Peter Warburton, who operates Cottages for Couples in Skibbereen, is also of the opinion that the timeline and obligations placed on property owners makes the legislation unworkable.

In September 2022, he said, Fáilte Ireland estimated that 10% of properties offering short-term rentals nationally were in Cork, around 3,500 units.

‘Yet, to date, no guidance has been given to local authorities on deciding planning applications for short-term lets and it seems unlikely that this will change any time soon.

‘As most of these short-term lets don’t have the necessary planning permission it gives Cork County Council around six weeks before the May 20th deadline to develop new policies and process over 3,000 new planning applications,’ he added.

‘For the owners of these short-term lets, it is inconceivable that they will be able to secure the services of a qualified engineer to submit and get approval for a planning application before that date.’