There are “significant concerns” about the impact of impending short-term letting legislation, particularly over planning regulations, according to a new report into the self-catering sector in Ireland.
The report commissioned by the Irish Self Catering Federation (ISCF), which represents over 6,717 self-catering properties in Ireland, shows that many “fear” they will be forced to close their business due to planning regulations.
Specific planning for short-term rental was not required in the past if the property did not have more than four bedrooms accommodating not more than four people each. Under new legislation, planning permission will be required, according to the report.
Speaking to Agriland, CEO of the ISCF, Máire Ní Mhurchú said that while the incoming register for short-term rentals is “very positive”, the “biggest threat” for farmers is that they cannot get clear planning guidelines which allow them to diversify their farm.
Report
As part of the government’s Housing For All plan, Fáilte Ireland is working to establish a new register of short-term letting properties with the goal of ensuring that housing stock is used to best effect in areas of housing need, the report states.
Fáilte Ireland’s Short-Term Tourist Letting Register for all short-term tourist accommodation in Ireland is due to launch this year. This will require all proprietors who offer short-term tourist lettings to register their property/properties annually.
Once registered, each property will receive a registration number for use on all booking platforms. At a local level, the enforcement of the relevant planning regulations is the responsibility of the relevant local authority, according to Fáilte Ireland.
Fáilte Ireland notes that the introduction of the Short-Term Tourist Letting Register, to be established under the Short-Term Tourist Letting Bill (2022), “will not alter, update or impact upon existing planning requirements”.
Speaking to Agriland following the launch of the report titled “An analysis of the self-catering sector in Ireland“, prepared by Jim Power economics and commissioned by the ISCF, in Dublin today (Wednesday, September 11), Ní Mhurchú said:
“Diversification is a wonderful thing to do for farmers. It brings in income in the summer time particularly, but it can bring in income all year around. People want to go and stay on family farms.
“You may have one self-catering house, you may turn a barn into a few self-catering units, you may decide to do self-catering and ‘glamping’ or other types of accommodation on the same site.
“It is a different way of earning an income but we need clarity from government, particularly the Department of Housing on the planning for farmers, so they can get clear guidelines so they can get on with setting up their agri-tourism businesses.”
Agri-tourism
Dairy farmers Tomás and Moira O’Keeffe based in south Tipperary turned a thatched farmhouse on their farm dating back as far as the 18th century into a short-term tourism letting property – Suir Valley Cottage – in 2021.
Speaking to Agriland, Tomás said they got involved in agri-tourism to provide a supplementary income to the farm and to preserve the traditional farmhouse which is a protected structure that has been in the family’s possession for 100 years.
The farmhouse is available to visitors – which mostly come from urban backgrounds – between April and November. This allows the dairy farmers to “forget about that side of the business and concentrate on dairy farming when it is at its busiest”.
While the farm itself hasn’t changed since taking up agri-tourism as a farm diversification measure, he said his work routine has changed slightly as he now has to dedicate time to dealing with customers and sometimes showing them around the farm.
Tomás is currently working on transforming another building on the farm into a second short-term tourism let for which he receives grants from South Tipperary Council Council under its built heritage fund.
The “biggest hurdle” with both thatched houses on the farm, he said, is insurance. “I currently can’t put myself into a position to finish the second house because I can’t get anybody to quote me for insurance”, Tomás added.
While there are “a lot of changes coming down the line” posing hurdles for farmers interested in agri-tourism, which the dairy farmer did not face previously, Tomás believes they are surmountable and shouldn’t put people off looking to get into it.
Addressing farmers interested in getting involved in agri-tourism, the dairy farmer said that a property being offered as a short-term tourism let will be a “stepping stone” for tourists during the peak season who will stay two to three nights at one location.
He said the “competition is not in the next parish, but in the next county and beyond”, and advised interested farmers to check out their competition on the various booking platforms out there and to look for a “unique selling point”.
When it comes to the actual building, he said one of the most important people to talk to is an interior designer. When people are “impressed” by where they are staying, he said they will give good reviews which in turn bring more business.
When working with any kind of an old building, he said farmers should get advice from a conservation expert on which materials to work with to avoid issues like dampness and mould. “Using modern materials on old houses causes problems,” he added.