DUBLIN CITY COUNCIL has ruled an apartment in Temple Bar which has been used fulltime as an Airbnb rental needs planning permission for change of use.

Temple Bar residents recently asked the council for a determination after it appeared for sale on property website Daft.ie for €425,000.

The advertisement for the two-bed apartment described it as “an exceptional 18% gross yield real estate investment opportunity”. It said it was rented out on Airbnb with a 90% occupancy rate over 2015.

Temple Bar residents are concerned about the rising number of properties in the area being used as holiday accommodation, particularly in the midst of a severe housing shortage.

A quick scan of Airbnb shows hundreds of apartments in the area available to rent short-term:

The council ruled the Crown Alley apartment is not exempt from the requirement to get planning permission.

In its decision, it said the proposed change of use for short term letting does constitute development, as it is a material change of use in regard to its character and the impacts on planning and sustainable development of the area.

Frank McDonald, chair of Temple Bar Residents said he is aware of a number of cases where long-term tenants were “forced out by large rent increases or have their tenancies terminated”, and these properties later appeared on holiday rental sites.

He said Temple Bar residents “warmly welcome the ruling and presume it will be followed up by enforcement action”.

“It also sends out a clear message to others in the burgeoning but unregulated Airbnb sector, that planning permission is needed for conversion to holiday lets.”

On its website, Airbnb advises hosts in Ireland to check the laws and regulations that apply in their county. It also refers to a possible requirement for planning permission in certain situations.

Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.