Government to restrict short-term lets in towns over 20,000 as planning grace period considered
Operators without planning permission may be given up to two years to regularise status
11 February 2026 | 📧 editor@ipropertyradio.com
The Government has agreed to restrict short-term letting in towns and cities with populations of more than 20,000, while considering a grace period for operators who do not currently have planning permission.
Under proposals approved by Cabinet, there will be an effective presumption against granting planning permission for new short-term lets in these larger population centres. The move marks a shift from earlier plans to apply the threshold to towns of more than 10,000 people.
According to Census 2022 data, 20 towns exceed the 20,000 population threshold. A further 29 towns with populations between 10,000 and 20,000 will now fall outside the scope of the tighter restrictions.
The new regime will require all short-term letting operators to register on a national online platform to be established and managed by Fáilte Ireland. Registration will be mandatory for any property let for periods of up to 21 nights. Planning permission for change of use will be required in order to operate legally in applicable areas.
Government sources have indicated that operators without planning permission may be allowed a defined period, potentially up to two years, to regularise their planning status. The proposed grace period would apply in towns under the 20,000 population threshold. A final decision on the duration of any transition period is expected shortly.
There is also uncertainty regarding properties that have operated without planning permission for more than seven years. Under the “seven-year rule”, unauthorised developments are generally immune from enforcement action by planning authorities. However, immunity from prosecution may not automatically confer compliance under the new registration regime. The Department of Housing is expected to clarify whether certain long-standing operators could be accommodated through a form of regularisation.
Tourism Minister Peter Burke said the revised threshold aims to balance housing supply objectives with tourism capacity, particularly in areas where hotel development is not considered viable. He said more than half of short-term lets are located within the five cities, where the Government expects housing supply gains if properties return to the long-term rental market.
The Taoiseach said the priority remains returning properties in larger urban centres to residential use, while also ensuring tourism infrastructure remains viable in regional areas. Legislation underpinning the register is expected to progress through the Oireachtas in the coming weeks, with the system targeted to be operational by May.
Opposition parties have criticised the change in threshold. Sinn Féin’s housing spokesperson Eoin Ó Broin described the move as ineffective in addressing rental pressures. Labour’s Conor Sheehan said the decision weakens protections for renters, while Social Democrats Senator Patricia Stephenson said it would reduce the impact of the proposed legislation before implementation.
Research published by housing charity Threshold in 2025 identified more than 20,000 entire homes advertised as short-term lets nationwide, compared with approximately 2,300 properties available on the private rental market at that time.
Industry representatives have sought clarity on planning requirements and transition arrangements. The Irish Tourism Industry Confederation has said many self-catering properties currently operate without explicit planning permission and has called for a defined compliance window to avoid disruption ahead of the peak tourism season.
The Department of Housing is expected to issue further guidance to local authorities on planning applications related to short-term letting as part of the wider implementation framework.
