Lauren Meaney: A ban on short-term rentals- an opportunity to increase the Irish housing supply or a nail in the coffin for rural tourism?
*STR- Short-term rentals
*STL- Short-term lettings
Ireland has introduced strict new short-term rental regulations and an effective ban in cities and large towns with populations over 20,000, taking effect on December 1 2026.
While the majority of property owners understand the objectives behind Regulation (EU) 2024/1028 and support reasonable measures such as a registration system, owners are deeply concerned about how it is being implemented at national level. In particular, the linkage between registration and planning permission risks making compliance unworkable for many small operators.
Minister for Tourism, Peter Burke’s, recent public statement predicting a strong year for Irish tourism is difficult to reconcile with the practical effect of the new STL laws. These regulations will significantly reduce available visitor accommodation, particularly in rural towns, villages and coastal areas where hotel capacity is already limited or, in many cases, non-existent. In such locations, short-term lettings are not an optional extra — they are essential tourism infrastructure.This begs the concise but egregious question; where will our tourists stay? Simple answer: no accommodation, no tourists.
The government statistics are products of data scraping from short term rental booking platforms such as VRBO, Booking.com, or Airbnb etc. Problematically, the data that is being ‘scraped’ is incorrect for a variety of reasons. Data is also duplicated as many STR operators list their lettings on all social media platforms. These inflated figures disguise the use of STR properties which include holidays homes, inherited properties (for generational family use) & granny flats. Furthermore, certain units are counted as residential units even though they may just amount to a room in someone’s house, a glamping unit or even a mobile home- none of which are suitable to long-term rental. Despite the above, the government count all of the above as viable housing units. The government operate under the assumption that the majority of owners of short-term rentals will turn to long-term rental.
There is a prevailing assumption that restricting short-term rentals in Ireland will automatically increase housing supply within the Irish housing market, but this does not reflect the reality for many property owners. In the case of many, entering the long-term rental market is not a viable or acceptable option due to practical, legal, financial & tax treatment considerations, especially considering the new rental rules that came into effect in March 2026. The likely outcome for the majority is not a shift to long-term letting, but a withdrawal of the property from the rental market entirely.
Many compliant and responsible STL operators invested in their properties in good faith, under existing frameworks, and have played a key role in supporting regional tourism for years. The introduction of restrictive measures creates uncertainty, financial loss and, for many, the prospect of exiting the tourism sector entirely. Once this accommodation is lost, it is unlikely to return — creating long-term damage to Ireland’s tourism offering.
Tourists seek a choice of accommodation. Visitors don’t just want hotel rooms. They want to be immersed into rural Irish heritage: country villages with traditional thatched cottages, and working farms etc. Take for example the thriving commercial activity on Slea Head Drive on the Dingle Peninsula, tourists pay as much as €10 as part of the ‘Hold a Lamb’ experience- something that The Shelbourne Hotel couldn’t dream of offering.
No hotel room can replicate a family home. Short-term rentals compound the cliché of ‘a home away from home’. STLs provide laundry facilities, cooking facilities, gardens with a view, facilities for children, all within a multi-generational environ. STRs are the Céad Míle Fáilte that allows visitors from every corner of the globe to feel comfort, ease, and a sense of belonging on the Emerald Isle.
The removal of this accommodation stock will inevitably constrain visitor numbers, shorten stays, increase prices and limit tourists’ ability to travel beyond major urban centres. This will have a direct knock-on effect on local economies that depend on tourism, including small tourism-related businesses, hospitality providers, attractions and seasonal employment. The suggestion that tourism can continue to grow while accommodation capacity is being actively reduced is simply not credible.
A blanket approach to short-term letting, particularly one that fails to distinguish between both high-pressure urban housing markets and tourism-dependent rural areas, risks undermining the very growth that the Government is promoting. If these regulations proceed as planned, the consequences for tourism capacity and regional economies will be immediate and measurable.
New regulations still require populations under 20,000 to apply for planning permission. The effectiveness of the above immediately weakens as Donegal County Council have already rejected an application (file reference 26/50068) under these new rules for STRs due to housing need. The nation sees, yet again, the apathetic nature of local authorities.
The primary problem that needs to be emphasised is the laissez-faire attitude of our local authorities, why is the attention of the government not on the fact the almost 30,000 vacant properties are owned by county councils across the nation? These are available to be used as residential units. Therefore, despite the claims made by the government regarding population planning thresholds, rural short-term rentals are still included. Even those under the 20,000 threshold are in danger of being shut down. No STR is safe.
The fact that the Irish economy is in desperate need of an affordable supply of housing is indisputable but at what expense to rural Ireland? Must the nation close down our extremely successful Wild Atlantic Way as there is no accommodation available? Nobody can deny that this serves as a nail in the coffin of rural tourism.
Having considered all acknowledged factors, I urge decision-makers to reconsider the implementation and scope of these measures and to engage meaningfully with tourism providers and hosts before irreversible damage is done.
Tourism growth cannot be delivered through policy that directly restricts the infrastructure required to support it.
Bibliography
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