Lynn Ruane (Independent) | Oireachtas source

I thank the Minister for his time today. I also thank the Joint Committee on Housing, Planning and Local Government for conducting work in this relatively new and rapidly developing area of the housing crisis. It struck me as I was reading this report, which is timely and welcome, that a sort of reversal of roles has taken place as the issue has developed. On the one hand, we have Irish citizens who are becoming homeless due to our broader housing crisis being housed in hotels by the Department of Housing, Planning and Local Government while tourists who used to stay in those hotels are now staying in the spare rooms, apartments and houses which our homeless population should be living in as their homes. This problem affects every part of the housing chain. As more medium and long-term rental opportunities are sucked into the market for short-term lets for tourists, we become, at the top, less attractive in terms of foreign direct investment and relocation opportunities as a result of Brexit. In the middle, families, younger professionals and students are suffering a worse quality of life due to the greater demand and consequent higher prices for private rental accommodation. At its absolute worst, the issue is causing people to be homeless as low-income families and individuals are simply not as profitable for landlords as short-term rental opportunities.

A couple of specific issues in the report are particularly glaring and need to be addressed immediately. The first is the absence of data. We are fumbling around in the dark without impartial State statistics. That an Oireachtas committee examining a crisis in our housing market has to rely on tripartite data from Airbnb, a secondary website that has data related to Airbnb and Dublin City Council, where none of the figures seem to correlate with each other, is not an acceptable standard on which to formulate housing policy. Airbnb, as an actor in the market, could have an alternative motive and we cannot rely on it to formulate policy given it could be at fault or in need of regulation itself. The main opposition view in this report is presented by the Irish Property Owners Association, which claims that these short-term lets are not affecting the rental market. We should not have to rely on a group with a potential vested interest in the current arrangement, given the perceived flexibility it gives property owners, especially when it denies this is a real problem while at the same time admitting that the problem is following the same trends as in London, where the problem is now prevalent. As a result, it seems clear that the Department needs to impose registration and licensing requirements on landlords immediately and start collecting comprehensive and regularly updated data, in line with recommendations 2 and 7 of the report. We need data to be independent of market actors and the Department can fill this role easily.

In terms of the issue of regulation, one line from this report really stuck out to me which was that “[t]he private rental market remains the main access route for people leaving homelessness”. I suppose that the statement is true but that the private rental market is framed as the number one pathway out of homelessness took my breath away for a second. As the report illustrates, there is a lack of strong and stringent State regulation of the private rental sector at the moment and it is therefore concerning to me that this is how we allow our homeless population to re-enter the housing market. I do not accept that the private rental market should be the primary route out of homelessness. I worked in the homelessness sector for a long time and saw people move out of homelessness into rental accommodation and end up back in a cycle of homelessness.

The rental market is not secure or predictable enough to be moving vulnerable people from hostels and hotels straight into it. If the sector is going to remain the main pathway for at least the immediate future, the Minister needs to act immediately to strengthen regulation in this area. However, I recognise the progress that has been made on this broader issue to date, particularly the Planning and Development (Housing) and Residential Tenancies Act passed in the Oireachtas last Christmas. The committee recommendations in this area are strong and I urge the Minister to take them on as Government policy. Recommendations 1, 2, 5 and 6 are particularly constructive. However, in terms of the two-tier regulatory structure, I am strongly of the view that we should at least consider, as an emergency measure, completely banning short-term rentals of entire homes which are not primary residences to bring those properties back into the housing supply immediately. Perhaps this would be a radical move but it was done in Berlin last year in response to a housing shortage and it would be a strong and proactive response to the issues raised in this report.

In terms of responding through legislation to the issues raised in the report, a number of practical steps jump out from reading it. First, the exemption from planning permission for overnight guest accommodation in Article 10(4) of the 2001 regulations needs to be amended and updated. From my reading of it, the exemption appears to stem from a different era and was most likely drafted with family-owned bed and breakfast accommodation in mind. It needs to be changed to reflect how rapidly this market has expanded. Second, the report clearly outlines that there is a lack of clarity and definitions in the housing regulations. We need State definitions, whether in primary legislation or regulations. These would include what constitutes a primary residence, the difference between homesharing and short-term rental activity and the definition of a short-term let.

I welcome the committee’s opposition to the memorandum of understanding with Airbnb and agree that it is inappropriate. We would have better clarity on the market if better data were collected but, considering there are other actors in this market too, the memorandum will not comprehensively address the issues raised. We need to augment the obligations on Airbnb to supply the Department and the Oireachtas with up-to-date and accurate information on the use of its platform. The data supplied to the Committee on Housing, Planning and Local Government were incomplete and we should be taking a proactive role in ensuring Airbnb's responsibility to declare usage is stricter. I also welcome the references to liability in these lets. This is an issue of great concern and the possibility for termination of tenancy, if a landlord finds out, would force more people back into the market and even homelessness. I hope the Minister is considering this issue and draft legislation along these lines. I would welcome a chance to contribute to the process when it comes to the Oireachtas. An update in this respect would be appreciated.