View of Ha’penny bridge on bright sunny day in Dublin, Ireland.
Stricter enforcement on Airbnb and short-term lettings in the Republic of Ireland are needed to protect the housing and rental market.
That’s according to housing activists and opposition politicians that believe regulations introduced last year need to be bolstered ahead of the difficult months and years ahead for the economy.
Last July, regulations around short-term rentals came into effect with a “one host, one home” model that is enforced by local planning authorities.
Eoin O’Broin, a member of parliament and housing spokesperson for Sinn Féin, the main opposition party, told CNBC that the regulations are sound but fall down when it comes to enforcement as the planning system is a “very slow and laborious process.”
For Airbnb hosts renting out a room in the home that they themselves live in, there was little change.
However, for people renting out second homes, holiday homes and other properties that aren’t their primary residence, they are required to obtain a “change of use” planning approval from their local authority. The regulations were introduced to encourage more properties back onto the long-term market. Rising rent costs in cities like Dublin have been a difficult policy issue as the average rent in the capital has risen to 1,709 euros ($2,010), compared to 1,252 euros in the same quarter five years ago.
However there has been a low number of short-term let planning applications filed with authorities despite the number of listings remaining high, as hosts avoid the lengthy application process.
“We always knew the regulations, even if they were good, would fall foul of weak enforcement if it was left to the local authorities. That’s not a criticism of the councils, it’s just the nature of planning enforcement,” O’Broin said.
Ireland’s Department of Housing,
(Reuters) – Home rental company Airbnb Inc is aiming to raise around $3 billion in its upcoming initial public offering (IPO), people familiar with the matter said on Friday, taking advantage of the unexpectedly sharp recovery in its business after the COVID-19 pandemic roiled the travel industry.
Airbnb will be one of the largest and most anticipated U.S. stock market listings of 2020 which has already been a blockbuster year for IPOs, featuring the likes of record label Warner Music Group WMG.O, data analytics firm Palantir Technologies PLTR.N and data warehouse company Snowflake Inc SNOW.N.
Airbnb said in August it had filed confidentially for an IPO with U.S. regulators.
The company’s current plan is to make its filing publicly available in November after the U.S presidential election and is targeting an IPO some time in December, the sources said, requesting anonymity as the plans are private.
The sources cautioned that the timing is subject to change and market conditions, in particular volatility that could come from the election.
A spokesman for Airbnb declined to comment.
The company could achieve a valuation of more than $30 billion in the IPO, the sources added, again cautioning this was subject to market conditions.
This would be substantially higher than the $18 billion Airbnb was valued at in April when it raised $2 billion in debt from investors. Airbnb’s most recent independent appraisal of the fair market value of its stock pegged its worth at around $21 billion.
The push to go public and the growth in its potential valuation underscores Airbnb’s dramatic recovery from earlier this year when