The Government has defended its decision to exempt modular homes in back gardens from planning permission in the face of a barrage of Opposition criticism that it would allow renters be ripped off by landlords.
The Cabinet approved the exemption at its weekly meeting on Tuesday and decided that the modular buildings and extensions – which can extend to 45sq m – would also be included in the rent-a-room tax exemption, which allows the owner of the principal house to charge rent of up to €14,000 a year tax-free.
The plans, mooted last year, have been criticised by some planning experts, but the Government insisted these can make a contribution to easing the housing crisis by supplying a new class of accommodation quickly.
Planning exemptions for modular homes in back gardens will be subject to some requirements, including the size of the garden – at least 25sq m (269sq ft) – and meeting building standards.
RM Block
Only owner-occupiers will be allowed to construct such homes, while separate entrances and a minimum distance between the modular home and the main house will also be required. The accommodation rented out will also be done on licence rather than lease.
Sources in Government said that no target had been set for how many such units would be built, but it will have data on the take-up.
“We will know in due course how many there are because those who avail of the exemption, you have to notify your local authority to let them know,” the source said.
[ Agreement in principle on plan to allow tax-free rental of back garden cabinsOpens in new window ]
“That’s the same process for other exemptions. The local authority will feed that data then back to the Minister, so we will know how many people have availed of it.”
Social Democrats leader Holly Cairns criticised the Government’s rent proposals for modular units and accused them of “throwing renters to the wolves”.
She cited a property close to Leinster House that accommodated 22 people paying up to €890 for a bed in a room with three others under a “loophole” arrangement.
The landlord, she alleged, was “raking in almost €20,000 a month under a licensing agreement, rather any tenancy”
Cairns warned that the new deal could allow property owners engage in the same practice – leaving occupiers with no access to the Residential Tenancies Board (RTB).
“This is a return to tenement conditions which were rampant in the worst years of this State. It should not be tolerated,” she said.
But the Government was “calling it practical and pragmatic to change to charge market rents for cabins in back gardens”.
She told Micheál Martin his legacy would see young people left to be “ripped off by landlords, to scrimp and save, to live in garden sheds, and to be denied their tenancy rights”.
But the Taoiseach said the Social Democrats had voted against and criticised every Government supply initiative over the past five years.
“If we do not get supply up, we will not moderate rents. All the rest is just populist waffle,” he said.
“Housing is in crisis, but we are never going to solve it if we criticise every single measure that a Government introduces – which you have been doing now for five years.”
Labour housing spokesman Conor Sheehan said the plan to allow landlords to “rent out marginal units” potentially opened the door to exploitation for vulnerable renters.
“Will you at least pause this until a full review of licence arrangements is completed and basic protections for tenants are put in place?” he asked.
