Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank the Acting Chairperson and thank Senator Garvey for raising this very important Commencement matter.

To provide some background, legislative reforms to regulate the short-term letting sector through the planning code in areas designated as RPZs were introduced under the Planning and Development Act 2000 (Exempted Development) (No. 2) Regulations 2019, which came into effect on 1 July 2019. The aim of the legislation was to return much-needed accommodation being used for short-term letting purposes in the designated RPZs to the long-term rental market, thereby increasing supply in the long-term rental market and helping to stabilise rents in those areas. Given that short-term letting accommodation is technically tourism-related accommodation and the regulation of such accommodation is more appropriate to the tourism sector, the Government's housing plan, Housing for All, contains a specific action, Action 20.4, to "Develop new regulatory controls requiring short-term and holiday lets to register with Fáilte Ireland with a view to ensuring that houses are used to best effect in areas of housing need". This will take the regulation of short-term letting accommodation out of the planning code.The Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media and Fáilte Ireland have lead responsibility for developing and delivering the new legislation in this regard with input from my Department, given its involvement in framing the pre-existing short-term letting legislation. The Minister, Deputy Darragh O'Brien, has engaged extensively with the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media to progress this action. A number of meetings have been held between officials of both Departments and with Fáilte Ireland and further engagement is expected to take place.

As an interim measure, and pending the establishment of the Fáilte Ireland registration system, which is due to come into operation in 2023, provision was included in the recently enacted Planning and Development, Maritime and Valuation (Amendment) Act 2022 to update and strengthen the existing provisions on short-term letting operated through the planning code. This also makes them more enforceable. This will be supplemented by regulations before they can come into effect.

These new regulatory controls on the short-term letting sector will be in place for an initial period of six months, during which time it is envisaged the Department with responsibility for tourism and Fáilte Ireland will work towards the establishment of the registration system as was committed to in Housing for All.

This measure essentially provides for an initial six month period which may be extended for a further six months subject to positive resolutions by both Houses of the Oireachtas. Non-principal private residences in rent pressure zones shall not be advertised or accept bookings on online platforms or other media for short-term letting purposes without the necessary planning permission for such use in place in respect of the property concerned unless the property concerned is otherwise exempted.

My Department is engaging with the relevant stakeholder groups on the detailed operational arrangements that will apply to the proposed measure to be incorporated in the required supplementary regulations. It is intended to conclude the consultation process shortly. My Department is also engaging with the European Commission on the legislation under the notification requirements of the directive on technical regulations and rules on information society services, TRIS. That engagement is ongoing.

The rent predictability measure was introduced in 2016 to measure rent increases in those parts of the country where rents are highest and rising fastest. Measures were introduced in July 2021 to extend the operation of these rent pressure zones, RPZs, until the end of 2024. Legislation is also in place to ensure that rent reviews in RPZs can only take place on an annual basis and until 2025 rent increases outside of RPZs can occur no more frequently than bi-annually. This provides rent certainty for tenants outside of RPZs for a minimum of two years at a time. From 11 December 2021, a cap of 2% per annum pro rata will apply on rent increases in RPZs where the inflation rate is higher than that. In all cases, section 19(1) of the Residential Tenancies Acts 2004 to 2022, RTA, prohibits the setting of a rent that exceeds market rent.

Section 24(a) of the RTA provide that the Housing Agency in consultation with housing authorities may make a proposal to the Minister that an area should be considered an RPZ. Following receipt of such a proposal, the Minister requests the director of the Residential Tenancies Board, RTB, to conduct an assessment of the area to establish whether or not it meets the criteria for designation and to report back to him if it should be included as an RPZ.