Latest news with #RPZs
Irish Independent
06-05-2025
- Business
- Irish Independent
Changes to Rent Pressure Zones needed to cope with growing population, Cabinet to be told
The report by the National Economic and Social Council (NESC) – the body that advises the Taoiseach on policy and strategy – outlines proposals to ensure future population growth is spread across Ireland's five largest cities. Among its recommendations are that 'more flexible rent controls' are needed to increase housing supply. This report is separate to an 'options paper' on RPZs which has been presented to Housing Minister James Browne. That review outlines a number of options including allowing landlords to increase rents by more than the 2pc cap that is currently in place. The NESC report on 'Deepening Compact Growth in Ireland' will further feed into the Government's thinking on what to do when RPZs expire at the end of this year. RPZs were introduced in 2016 to try to calm soaring rents and have been extended ever since. They will need to stay in place for at least another two years while an alternative system of rent controls is formulated, Housing Commission chairman John O'Connor has said. The NESC report details how to ensure that at least half of the population growth between now and 2040 takes place within five cities and their suburbs. The Land Development Agency will have an important role in making this happen over the next 15 years. At least 50pc of that growth should be in Dublin and the other half in four other cities: Galway, Cork, Limerick and Waterford, the report said. Between 2016 to 2022, the share of population growth represented by the five cities was just 32pc. The National Planning Framework target of having 40pc of new housing developments within existing, built-up areas is now being achieved, but the NESC said even more could be done. The report, to be presented to the Cabinet by Taoiseach Micheál Martin, outlines the benefits of 'compact growth', including 'higher productivity and innovation, more sustainable travel, improved access to services and lower energy consumption'. The report welcomes commitments in the Programme for Government relevant to compact growth, including the creation of a new strategic fund to invest in infrastructure, the enactment of a new Compulsory Purchase Order Bill and ensuring every local authority has an expanded vacant property team in place. Other recommendations include: going further than the current target of having 40pc for new housing developments within existing built-up areas; increasing investment in cost-rental homes; developing a brownfield activation strategy; and encouraging 'densification of existing areas' including more use of corner sites, gardens and mews development. It also recommends an increase in public investment to unlock land suited for desirable compact growth. The NESC recommends the Government should, where possible, continue to seek reductions in the construction costs of apartments as well as houses and a 'more three-dimensional approach for planning in areas subject to the prospects of significant regeneration and change', to help people understand what is involved in new development and thereby facilitate deeper engagement. Meanwhile, the Cabinet will also discuss its latest economic and fiscal projections. Finance Minister Paschal Donohoe will get approval for the first Annual Progress Report, which will be presented to the European Commission. The report outlines how Ireland will comply with EU budget and debt rules, and replaces what used to be the Stability Programme Update. The EU is allowing opt-outs from the fiscal rules to allow states to spend more on defence. But Ireland is not expected to be among the countries that will seek such an exemption. Justice Minister Jim O'Callaghan is also expected to seek approval to extend the laws allowing outdoor seating for licensed premises for another six months until the end of November 2025. The Civil Law (Miscellaneous Provisions) Act 2021 was introduced as a temporary, Covid-related provision to facilitate safer outdoor socialising. The relevant provisions of the act can be extended for up to six months at a time by resolution of each House of the Oireachtas. The extension is requested to give clarity to licensed premises, local authorities and gardaí.
BreakingNews.ie
25-04-2025
- Business
- BreakingNews.ie
66 per cent of Airbnb listings are for entire properties in tourist hotspots, research finds
The ESRI has published new research, funded by the Department of Housing, providing insights into Airbnb usage across Ireland. It has revealed that two-thirds of Airbnb listings are for entire properties, and they are concentrated in tourist hotspots along the west coast and inner-city Dublin and Galway. Advertisement Other key findings included there being at least one Airbnb for every 10 private rental sector properties in 38 out of 166 local electoral areas. While certain areas have high numbers of Airbnb relative to private rental sector properties, the ESRI found no evidence linking increases in short-term let activity and falls in new rental tenancy registrations between 2019-2023. This does not mean short-term let activity has not had a detrimental impact on the private rental sector in specific local markets, it said. It does, however, suggest short-term let activity is not the primary cause of falling new rental commencements or the lack of available rental accommodation nationwide. Advertisement Strong relationship between current Airbnb listings and previously recorded holiday homes in non-urban tourist hotspots, with a lower correlation in urban areas. This indicates that many short-term let properties, especially those in non-urban areas, might not be part of the PRS in the absence of Airbnb. The ESRI said voluntary registration and change of use planning permission requirements for short-term lets in Rent Pressure Zones appear largely ineffective. Measures may have discouraged some Airbnb hosts, but the number of applications received (91 in 2023) is very small relative to the number of entire property Airbnb listings in RPZs (9,142 in September 2023). Advertisement The current registration system and regulatory approach require reform which must cater for differences across local markets. Different policy responses are likely to be required in urban areas with large rental markets, compared to coastal towns with more moderate rental sectors. Commenting on the report, author Dr Rachel Slaymaker of the ESRI stated: 'Understanding the dynamics of the short-term let sector and its interaction with the rental sector is crucial for informed policymaking. "Our findings highlight the importance of establishing a register covering all short-term let activity across Ireland to provide timely data to be used in conjunction with rental sector data to monitor activity, changes in usage patterns and particular pressures in local areas. "This is crucial for ensuring a balanced approach to regulation that considers both the need for tourist accommodation and rental housing for locals.'
