Cork City Council begins enforcement action over apparent renovation grants violation

Cork City Council has begun an enforcement action against a formerly derelict house now advertised on Airbnb, in apparent violation of the €70,000 renovation grants given to the property’s owner.

The house, which is located at 3 Grattan Hill Lower, was derelict until two years ago, when it was completely renovated, work which was in part financed by public grants designed to bring vacant homes into the long-term rental market.

The owner of the property company which renovated the house on behalf of one of their clients has said it was only when The Echo approached him that he became aware that the property was advertised on Airbnb.

The renovation was undertaken by Powell Property, which is owned by Micheál Powell.

In social media posts to YouTube and Instagram in September 2024, filmed before the property was renovated, Mr Powell said his company had bought the property – which had been vacant for two years - on behalf of a client.

Grant

In the videos, Mr Powell said he was then in the process of availing of Cork City Council’s vacant property grant, adding: “The grant stipulates that you need to stay in the [long-term] rental market for 10 years”.

“If you break the 10-year agreement, there [are] clawbacks from the council. It has to be made available for rental for 10 years, so we’re providing a net housing gain into the market.” Powell Property availed of a €50,000 vacant property grant and a €20,000 derelict property top-up grant, both of which were allocated dependent upon the property registering with the Residential Tenancies Board (RTB) and becoming a long-term rental property for a minimum of 10 years.

The property separately availed of a €22,000 Sustainable Energy Authority of Ireland (SEAI) grant to upgrade its energy rating.

However, the property has been advertised on short-term letting website Airbnb since at least October of last year, and three neighbours separately told The Echo the property is an Airbnb short-term let.

No planning permission for short-term letting has been sought on the property, even though under the Planning and Development Act 2000, this constitutes a material change of use.

In rent pressure zones such as Cork city, specific permission for such changes of use has been required since 2019.

Lockbox

The property is featured on at least two separate Airbnb listings, with photos edited to make the rooms appear different, and has an external lockbox fitted for key collection by guests.

When The Echo called to Mr Powell’s office on the Grand Parade, he said it was the first he had heard that the property was on Airbnb.

“I’m delighted you called in; we will deal with it immediately, as we would in a breach of any tenancy,” he said.

“We’re not in the business of short-term lettings; we’re in the business of long-term tenancies.” 

Mr Powell said he has more than 950 properties on his books “and they’re all on long-term solutions”. He said he would contact the tenant, adding: “if they are in breach, we will have to terminate their tenancy”.

“We get €2,100 per calendar month for the property, we don’t take nightly rates, we don’t undertake short-term rents, it’s on a 12-month contract as far as we’re concerned. If there’s a breach, we will deal with the breach very seriously, and we have received no enforcement notice from Cork City Council.” 

The Echo has attempted unsuccessfully to contact the tenant.

A spokesperson for Cork City Council said they could confirm there was “an open enforcement file in relation to this address”.