The government has approved stricter regulatory controls on short-term letting in rent pressure zones (RPZs) aimed at reducing the number of homes being advertised on Airbnb.

Minister for Housing Darragh O'Brien welcomed cabinet approval for the bill, which if enacted, will mean that from 1 September online platforms will not be able to advertise properties in RPZs that do not have the requisite planning permissions.

Non-compliance with will be an offence for both the individual property owners concerned and the online platforms, and O'Brien said the new controls would result in more homes in areas where rents and demand for rental properties are highest returning to the long-term rental market.

Under the Planning and Development Act, a person must apply to their local authority for planning permission to change the use of the property, so it can be used for tourism and short-term letting purposes, and planning authorities can take legal action if a property does not have the requested permissions.

"We know that significant numbers of properties have been withdrawn from the long-term rental market in recent years and diverted for use as short-term lettings, negatively impacting on the supply and availability of private residential rental accommodation with associated knock-on implications for rental prices," said O'Brien.

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"This trend has been made easier through the use of online platforms and has been particularly acute in urban areas of high housing demand. 

“Through these new controls we are strengthening the regulations which are in place and ensuring that homes are used to the best effect in areas of acute housing need.

"These regulatory controls will be in place a period of six months initially during which time the Department of Tourism alongside Fáilte Ireland will establish a new registration as committed to under Housing for All.

“Government are acutely aware of the pressures on the rental market at present and we expect that these new and significant controls will help to ease that pressure.”

The amendment to the law is currently progressing through the Oireachtas and is expected to be enacted before the summer recess. It was reported in May that more than half of renters are receiving state support, with less than 1,000 properties currently on the market.