Oireachtas Joint and Select Committees

Wednesday, 21 June 2017

Joint Oireachtas Committee on Housing, Planning, Community and Local Government

Housing and Rental Market: Discussion

9:30 am

Photo of Victor BoyhanVictor Boyhan (Independent) | Oireachtas source

I thank the witnesses for coming here and sharing their knowledge. Both of the papers before us are very interesting. I will make a few comments, if I may, before getting into the detail of the questions. I read all the submissions before us today and there is a certain trend running through them. There is basically a need for some regulatory control for the very short-term lets. In every submission we have received, people speak of regulatory control. There is a need for quality and standards in accommodation. We must be realistic and responsive to demand; we should be honest and realise that Airbnb works because there is a demand for it. There has always been a demand in cities for short-term letting, which serves a purpose, stimulating economic activity and tourism. It is good that there are spin-offs for people in the short term with regard to the buying of commodities and goods in the cities. There are many benefits, which is very important. There are short-term lets in any city, which is important. We do not want any stagnation in the city and we want it enlivened by a cross-section of people and different traditions and backgrounds. This feeds into a very positive living city, which is important for Dublin, which has made great in-roads in that regard. I am singling out Dublin for a moment as Dublin City Council produced one of the documents.

We must be responsive to the realities on the ground and the demands that exist for accommodation. We should not get hung up on the word "Airbnb" as there are many other portals and ways to book short-term accommodation. That relates to a flaw as the Department mentions a memorandum of understanding. There are more people out there who we do not know about or quantify who may engage in very short lets. Perhaps there should be a memorandum of understanding with the sector, which requires public consultation and engagement in a broad sense with the sector, or at least in as much as we can make contact with the sector. That is a difficulty in itself. There must be flexibility in that respect.

We can set a context. In October 2016, An Bord Pleanála made a significant decision on short-term lettings. That decision arose, as we know, from a section 5 declaration that went to the board and not the council, seeking clarification relating to a matter pertaining to a property in Temple Bar. It is worth noting what the board stated, as it is important. Anybody can seek a section 5 declaration, as witnesses know. The board decided the use of the entire residential apartment on a year-round basis for a series of short-term holiday lettings constituted a change in use. It stated such a change of use raised planning considerations that are materially different from the planning considerations relating to the normal use of residential apartments and the change of use is material, constituting development under the Planning and Development Act 2000 as amended. Finally, the board indicated the development was not exempt and therefore required planning permission. That is the basis on which we work as it is what the independent planning board stated.

Going through the submissions, there is a concern that people comply with planning, health and safety issues, general regulations to do with tenancy and taxation. These are underlying issues, although we must be very careful with our remit. There is also the issue of the shadow lodging sector and people evading compliance with regulations, rules or taxation. We must also draw a reference to Dublin City Council, whose development plan goes from 2016 to 2021. Perhaps it will share any specific objectives in the county development plan that preclude some of what we are discussing. Is there room for change and should there be change? I know that is more a planning than housing issue.

I have a couple of questions. Mr. Shakespeare mentioned a consultant and that work will be really interesting. There is a lack of hard factual evidence that we, as policymakers, can rely on. There is much anecdotal evidence. I took the time yesterday to examine what is happening in Barcelona, London and Madrid. Airbnb is nothing new and it is all over the world. There are regulations and caps in London, for example, on the amount of nights one can stay. There are imaginative ways to deal with this. When does Mr. Shakespeare envisage the report he mentioned will be completed? It would be very beneficial for us to look at that at another time. The personnel from the Department mentioned a memorandum of understanding with a particular named group - Airbnb - but that is not good enough and it will not capture all we want, with all due respect. There must be a bigger engagement with the sector.

The witnesses both touched on the reality that due to the financial crash and other matters, many people are renting rooms in private homes to supplement or pay their mortgages. They would be on the street if they did not do it. It is a reality we must recognise and acknowledge.

There are many people engaged in Airbnb who need that income to pay their mortgages and keep a roof over their heads. It is a complex issue. In terms of the reports to date on this issue, there is a lack of detailed, hard, factual evidence that policymakers need to make policy.

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