Government Backs €862M Housing Fund for 86,000 Homes, Introduces Strict Short-Term Let Rules

The Government will support local authorities applying for planning permission for new road, water, and energy projects, aiming to create 86,000 new homes. Almost all local authorities will receive letters confirming their share of €862 million from a new €1 billion housing fund, with project managers appointed for 82 housing plans.

Most projects involve road infrastructure, chosen for being «shovel-ready». However, many will not deliver homes until after 2030, past the Government's 300,000-home target deadline. Local authorities are warned that slow progress could lead to funding reallocation. The Housing Activation Office, tasked with cutting red tape, runs the fund. Authorities are encouraged to have a «higher risk appetite», with the Government assuming planning permission will be granted.

Key projects include a Carrigtwohill, Co Cork, initiative to unlock land for 2,747 houses linked to a rail project, and funding for the final section of a Newbridge, Co Kildare, relief road expected to enable over 1,000 homes. Minister for Housing James Browne expects most of the 86,000 homes to progress «a lot quicker» than within 10 years.

Browne also introduced a Bill on short-term lets, aiming for some of Europe's strictest rules. This includes a two-year grace period and simplified planning for long-term Airbnb hosts. Properties in towns with over 20,000 people must comply by December, while those in areas with fewer than 20,000 have two years. Operators renting for over seven years can seek planning permission via a simplified administrative process, without needing drawings. A national planning statement will presume in favor of granting permission for dwellings continuously used for short-term letting for at least seven years, provided no enforcement action was taken and no new risks are created.