Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
AMID CRITICISM THAT short-term lettings are hurting Ireland’s rental sector, Airbnb has revealed that 640,000 guests will use the service in Ireland over the summer.
The website has said that it is experiencing its “busiest summer” in Ireland and that a typical host will earn €2,000 during the period.
Airbnb allows renters and homeowners to rent out their property to visitors and argues that it is making a significant contribution to Ireland’s tourism industry.
Yesterday, the CSO confirmed a 6.7% increase in overseas visitors for the first half of this year, with 307,000 more arrivals than the same period last year.
Airbnb estimates that visitors travelling to Ireland using the website will contribute €57 million to the Irish economy between mid-June and mid-September.
Visitors from the US are the biggest group using Airbnb in Ireland, followed by domestic Irish holidaymakers and then visitors from the UK, France and Germany.
But with Ireland’s housing crisis putting upward pressure on rents, Airbnb and other short-term letting websites are being accused of taking much-needed rental stock off the market.
Calls have been made for greater regulation of the sector with Housing Minister Eoghan Murphy currently considering a report that he was presented with a number of months ago.
The minister has been criticised for not publishing the report and it’s understood that there have been meetings about it recently within the department.
Holiday homes
Senator Kevin Humphreys has published legislation on the issue in the Seanad and, speaking to TheJournal.ie, he claims that homes previously rented to families are now being used solely as short-term holiday homes.
“I reckon there’s about 6,000 homes that have been transferred into the holiday sector as short-term lets in the middle of a housing crisis,” he says.
Humphreys adds that regulation won’t solve the problem but that it could provide some respite, pointing to Berlin where strict controls on short-term lets brought 2,500 long-term rentals back onto the market over the course of a year.
Berlin is one of a number of major cities that have clamped down on the use of Airbnb.
Hosts in Germany’s capital are only permitted to rent out their property for 50% of the year, while Amsterdam imposed a limit of 60 nights a year.
Humphreys supports a licensing system that would restrict the number of nights a property can be rented out, but he says restrictions must be designed so that landlords don’t continue flipping rentals into holiday homes.
It can’t be long enough that it will economically reward landlords from transferring what is a long-term let for a working family into a short-term let. It would allow a family that’s going on holidays to let their property for two weeks but it wouldn’t let a landlord that currently has a property transfer it to short-term.
The senator said that two-bedroom properties in Dublin are available to rent for €150- per night on Airbnb and that investors are buying up property to convert to short-term lets.
Kevin Humphreys says Dublin communities are being affected by holiday rentals.Source: PA ImagesHumphreys says there are 15 other websites that are also advertising holiday rentals and adds that he's seen the effect of this in his own local area.
"They’re hollowing out communities in the city, because where we had living, vibrant communities we now have tourist, holiday-homes. And that’s happening in Ringsend, in Pearse Street, in Stoneybatter, in Phibsborough. And it’s having a real impact on the letting market in the city."
I've seen it in multiple units in the Ringsend area, where families have been letting them long-term and it’s been transferred into short-term lets and it’s having an impact locally. Not only on the shortage of homes to be let, but also turning what would be vibrant communities into a holiday resort. And that’s not the experience people want to have when the come to visit a city.
Regulation
Last year, a government working group was established to examine whether new regulations are required for the sector.
The report of that working group was delivered to the minister a number of months ago but it has not yet been published. It is understood that regulations imposed in other countries are being considered as part of the report.
In a statement yesterday, the department said that the minister "continues to review the group's report" but it gave no indication on when it would be published.
The department noted that the minister is also reviewing a previous report published last year by the Oireachtas Housing Committee.
That report recommended that all hosts should be required to register with the relevant local authority and that a two-tier system be introduced, separating those who rent out their own primary residence for more than 90 days per year.
Sinn Féin's housing spokesperson Eoin Ó Broin TD is among those who have criticised the minister for not publishing the report, and also for proposing a subsequent public consultation process.
Ó Broin said that the committee's report is sufficient to begin formulating legislation.
“It is my view that a prolonged public consultation process is not necessary. This issue has been debated publicly now for a number of years with many stakeholders including ourselves and the housing committee, putting forward workable solutions," Ó Broin said this week.
Tourism
The issue of short-term lets is also understood to have caused tension between the departments of housing and tourism, with a lack of clarity over who should take the lead on regulating the market.
Speaking to TheJournal.ie last week, Minister for Tourism Shane Ross conceded that his department would likely shoulder some of the burden.
"I think we will probably have to share the responsibility for that - I think we should set up some sort of inter-departmental group, that should probably be done in the future alright," he said.
- With reporting by Christina Finn
To embed this post, copy the code below on your site
Markets react to demand. There is a demand to visit Ireland, and that’s a good thing. Now lads, rather than putting barriers in place to restrict visitors, what else could you possibly do?
Why is the solution always a knee-herk and a sledge-hammer?
@Matt Connolly: no matter what the good news in Ireland today is, the knee-jerk response is always “what about the homeless?
@Matt Connolly: Is this not what hotels are for? There was an article on here yesterday discussing the amount of hotels that are being built in the CC.
@Mark McDermott: so you accept that we are approaching a solution with onsiderably more budget hotter rooms? Why the need for further interference in the market then?
Aww isn’t that adorable a free market dunce, they’re the funniest clowns ever.
A four star hotel in county Limerick for 2 nights B and B for a family of 5 is €720. How much would it cost for Airbnb. Hotels need to sort themselves out. €64 for breakfast for two in a Dublin hotel after price of €300-€400 room rate for one night . We need to be competitive not a ripoff country for tourists.
@Mickey Finn: on Airbnb this weekend, 2 nights in family accommodation, private rooms for families, Limerick: average price is €401 pet night.
@Gulliver Foyle: morning. I looked at a Tuesday and Wednesday night in Adare.
@Mickey Finn:
Adare is a poor example for Airbnb. Very little there
@Mickey Finn: Typically in Wexford it works out at €20 – €25pp sharing in a Airbnb, as I run one in my home, which includes continental breakfast, use of the games room (snooker / table-tennis / ice hockey +) access to living and dining room + kitchen. VALUE OR WHAT :) It can even sleep 9 people sharing 4 bedrooms. Some are superhosts, some are not, but I always stay in Airbnb’s as you get value, meet locals and you are treated as an extension to a growing community of fellow guests / travelers / and new friends.
There goes the government again…. don’t blame us…. it’s landlords, Airbnb blah blah. Nope the housing crisis lies directly at the door of the government. Don’t be fooled
@DaisyMay: Is it upto Government to house people.
@Shaun Gallagher: it’s up to the government to help control and boost the building of new homes. Dublin is as flat as a pancake and spiraling out of control. When ex council houses are going for 700,000. THAT is the governments fault.
@Shaun Gallagher: nó, it is up to the government to have a housing policy/strategy.
@DaisyMay: you forgot its the pope’s fault too.
@Shaun Gallagher: Sorry but last time I check Ireland is not in the Caribbean and it is not a Cuba. Government is you and me, our taxes to pay for all we enjoy here. So sorry again but I am not going to house you I must think about housing myself first.
@Pat Patovic: with an AFFORDABLE home. Two working people should be able to provide a roof over their heads without drowning in debt.
@DaisyMay: Correct but that has very little to do with Air BNB. If anything then they can be credited with creating an AFFORDABLE holiday industry.
@Pat Patovic: Good enough.
@Pat Patovic: affordable? I guess you haven’t looked at the cost of a rental of a b&b in lahinch on Airbnb recently! They are directly responsible for massive shortterm rental inflation!
@Gulliver Foyle: Lahinch? Not exactly known as a rental black spot is it? And what about tourism, which Lahinch totally depends on? I say Airbnb is fantastic for “Turning villages into holiday resorts”. We should be thanking them for the service to tourism. And why no ire towards hotels? They can charge the equivalent of a weeks rent in a Dublin hot spot zone rental accommodation, for a mere single night stay.
@Shaun Gallagher: it’s up to the government to house vulnerable people and people down on their luck.. not career scroungers
AirBNB is brilliant for home/owners and travellers. There are vested interest that want to keep charging exorbitant prices that will line up to critisize this very popular tourist/travel type of affordable accomodation.
@Stephen Duffy: and this article has conveniently missed that Ireland’s towns and villages do not have any sort of housing problem, only it’s major city. I do agree that there probably should be done sorry if time based control on renting out genuinely lived in places, while investment rentals should be hit with controls to avoid overheating Dublin’s hospitality sector and pricing it out of (non us, elite or paddy whackery) tourists reach.
@Gulliver Foyle:
Maybe if the Government provided incentives to families to relocate to towns and villages where there are houses available and school places it might relieve the problem of homelessness for some. Easier that emigrating or having to live in a hotel room or be on a wailing list for 10 years.
@Aine O Connor: How do those who currently live in those towns & villages currently manage? And how is emigration any easier than relocating to another part of the country? You would experience all the same issues as relocation.
@Aine O Connor: there getting handed a vastly subsidied house is that not enough for the hand out brigade?
Yup, they do not like to see ordinary Joe making few quid. Not a word about repossessed houses owned by banks are left to crumble lying empty for years.
So let me get this straight:
if say a granny is living in nursing home, her house is locked up and gathering dust, no one has a right to touch it because it is private property. All discussions about forcing the sell of the property to relieve the housing shortage are met with huge uproar. Fair enough. Let the house gather dust as this is the property owners right.
NAMA has repossessed thousands of properties and also keeps them deliberately locked up for years to hike up the prices – again perfectly legal, because private property.
But if someone decides to rent out his private property on AirBnB – he is suddenly a public enemy. We already have peasants with pitchforks and torches shouting “down with this sort of thing!”
So why is the granny in the nursing home not being blamed for the housing crises even though she is the one keeping her property locked up?
Why is NAMA getting away scot-free even though they literally have thousands of properties locked up and will not release neither on sale, nor for rent?
@Termaz Fx:
Coz if NANA lives to be 110, it’s likely her main asset will appreciate in value (tax efficiently – no cgt) sufficiently to cover nursing home costs and still allow for decent tax-free inheritances for her offspring.
Ditto for NAMA!
@Rory J Leonard: So basically the only reason NANA is getting away without being blamed for the housing crisis is because she has a bunch of greedy grandkids who are waiting to cash in on her property once she gets a date with St. Peter.
And since everyone has a granny which will eventually turn into a cash prize, everyone is sitting quite and turning a blind eye to these boarded up properties :)
@Termaz Fx: Well there is the derelict site tax coming in to combat granny. Though it’s so small it will be ineffective. The number of granny houses are small.
Nama is a political quagmire and not easily solved. There is not a whole load of Nama properties in prime areas ready to go for renting/selling. And they are a public enemy.
Airbnb is a more straightforward win. Everyone can see the effect in the cities, where once you could rent it out long term, now they are only for short term tourists. There is a limit, which is why other countries have taken action to restrict its use.
The regulation of Airbnb is a must in Dublin. There are investors coming in from abroad and buying up houses purely to let out as short-term holiday homes. It’s a ridiculous situation that’s draining the city of homes for the people that live there. I have a friend who bought a lovely apartment in the city, the apartment above has since been let out as a full time Airbnb, these buildings were designated as residential properties yet this one is being used as a full term commercial entity. He has groups of people every week having parties nonstop and if there are issues with access or leaks they are knocking on his door. It’s a horrible situation. The government are burying their head in the sand and it’s not gonna cut it with regards to this. We need new homes and regulation of Airbnb.
@Bingobango:
Yep you’re right, and I’m an Airbnb host.
Difference is it’s my apartment.
Regulation is essential. That is what Airbnb don’t do. The Government can’t see past the money as always. There should be no full time Airbnb’s in Dublin at all.
@Anton Dec: Exactly, in theory Airbnb is a great idea, you let out a spare room in your home to generate extra income. I don’t think anybody has a problem with that. The way it’s being used now as a platform for commercial short-term letting and destroy the already fragile housing market is why we need to follow in the footsteps of New York, Berlin and Amsterdam to properly regulate and restrict the terms of use for Airbnb to facilitate the actual residents of the city.
Why is everything a factor in the housing entitlement sorry crisis, Airbnb, to many hotels been built new runways, this is and will generate a lot of money to the economy, maybe SF and the left need to start looking at the open boarder policy for the people who have nothing to contrabute to this country instead of allowing and making it so easy for our own and other to sit and do nothing.
@Gavin R: “maybe SF and the left need to start looking at the open boarder policy for the people who have nothing to contrabute to this country”
Is it SF that accept peoples asylum or citizenship requests? Is that not the government?
@Gavin R: fair play for saying like it is. Help the people who pay the bulk of tax. Not the generational spongers
How about the government stop telling peoole what they can and can’t do with their private property!
@Sorcha Ní Shúilleabháin: They can do whatever they want with their own property within the law. If you are renting out an Airbnb full time in a building that is designated for residential use, then running an commercial enterprise like Airbnb is breaking planning laws. If it is to be used as a commercial property you will have to pay commercial rates for everything from water supply to your sky sports subscription, I hope they all have their public liability insurance in place too. This company is a scourge on every modern city around the world, that’s why residents of these cities are standing up to it and some forward thinking governments are heavily restricting it.
Seems like a vested interest cry…
Hotels want total control…
Damn those Air BnBs bringing tourism and revenue to small towns and villages across Ireland. The gubberment need to clamp down on this!
@Conor Walsh: Yea, except no one is really complaining about that. The problem lies in the cities where supply is at a premium and rents are spiralling out of control.
When you build council houses, then house people who you ultimately allow buy the place for half nothing, who then go on to have 10 kids, that don’t work either and also want to live in social housing, if you haven’t built more houses, you’ve created a housing problem. Don’t blame hard working property owners for your own mistakes.
This seems to be Trump Tweet thinking, the idea that homelessness is made worse by AirBnb? From what I see AirBnb availability is in rooms and buildings that were idle as homeless people did not fill, and it seems most existing BnBs and hostels are on AirBnb too. My observation is rural Ireland. This article observation may be Dublin?
Increased tourism is solid economy growth, genuine trade, rather than build an empty vessel economy from raising property prices and doing nothing with the property.
@WoodlandBard:
In a way you can’t blame people for using AirBNB. I was invited to spend 2 nights in one in Dublin and I must say it was great value.€140 per night for 5 adults and two teenagers. The house was fab and when we arrived the heating was already on . That worked out at €20 per person per night.
It’s really great for the wesht and remote/rural Ireland.
I run a Airbnb http://www.airbnb.ie/rooms/20044309 where up to 9 people can stay in Wexford @ €40 per double room per night, local hotels are full at prices ranging from €100pp to €320 per double per night, never did nor would do short term or long term rental as I live on the property and I quite like having a games room that groups can use.
This blame game is a load of rubbish, we had / have B&B’s / Booking.com / Tripadvisor plus many more – picking on Airbnb is unjust. People like having people stay at their property when they are away, even minding pets. Airbnb has nothing to do with the rental market here or around the country.
Ban ownership of second and subsequent properties.
easy go bring in law that any one with spare room has take in a homeless person . measure square feet all house’s anyone over set number has take in homeless person. if you are a true share wealth equailty person how can you complain. job done
A lot of these commenters are so stupid they might as well be American.
less risk associated with a short term lease , simple really !
have your say