NEW laws covering the short-term letting industry will lead to hundreds of properties closing and cost the tourism economy in Co Cork €50m, an economist has predicted.
The report by economist Jim Power was carried out for the Irish Self-Catering Federation, which represents owners of self-catering properties in Ireland, with members operating more than 6,500 units of self-catering accommodation across Ireland. The ISCF chief executive is Máire Ní Mhurchú who operates a self-catering property in Dunmanus in West Cork.
The Short Term Letting and Tourism Bill is currently going through the houses of the Oireachtas. Unlike other EU countries, Ireland is attaching planning permission to this legislation, which is a consideration in the context of the housing crisis. Owners of rental properties believe any requirement to get planning permission to operate would push them out of business.
A report published this week by economist Jim Power suggests that it will have serious effects for properties along the Wild Atlantic Way and beyond, with Cork badly hit.
Mr Power’s analysis of the self-catering sector in Ireland estimates that 1,313 properties used for short-term rental could close if the legislation is enacted, in areas like Carrigaline, Kinsale, Bandon, and Macroom, with an economic loss of €51m.
Mr Power calculated the loss based on five people staying in a rental property, spending an average €300 per week over 26 weeks. The figure did not include economic value of the rental to the local families who own properties.
ISCF chief executive Máire Ní Mhurchú has previously called the new legislation ‘a ticking timebomb’ for the sector because ‘no planning permission means no registration number’.
‘The cost of this proposed planning aspect to the legislation, which is posing a considerable threat to our members, would be unviable to obtain. That is a cost that our members, many of whom rely on their business for a living for their family, simply cannot afford,’ she added.
