'Rapid-build' modular homes slower to deliver than expected, says Taoiseach

Modular homes under construction at the Ballinure Land Bank, St Michael's Drive, Mahon, Cork, earlier this year. Picture: Eddie O'Hare

Taoiseach Leo Varadkar has admitted that "rapid-build" modular homes are proving slower to deliver than expected and that "they're not particularly cheap". 

Mr Varadkar said modular housing will continue to form part of the State's response to the housing crisis, particularly in providing homes to refugees and asylum seekers. 

However, he confirmed that difficulties in the roll-out of rapid building housing means tents may have to be used again in the coming months.

“The truth is, we have a huge number of people arriving in the country from Ukraine and from other parts of the world and we have responsibilities to provide them with shelter, and tents are not the solution that we want,” he said.

“But on occasion, they have been used and may have to be used again.”

Last November, the State announced plans to deliver 750 modular housing units through a rapid-build programme that it said could provide accommodation for up to 2,800 Ukrainian refugees at sites around the country.

But a lack of suitable sites means that less than half of the promised units will be ready before the end of this year.

Last week, it was announced that the Electric Picnic site will host up to 750 Ukrainians in tents for six weeks.

Mr Varadkar accepted that the rapid-build modular homes have not been delivered as quickly as was hoped, but said: "We're going to see hundreds more developed over the next couple of months.

“And I do think that it could help form part of the wider solution when it comes to housing supply.

“But I do know from experience when it does come to modular homes or modular buildings, they're never as quick to build as people think.

“And they're not particularly cheap either. But they are definitely part of the solution.” 

He said the delays in delivery differ from site to site.

You can't just drop a home into a field.

“One of the things you have to do, for example, is make sure that the sites are serviced.

“And in a lot of cases, it's been getting electricity and getting the road in, getting the services in, and in some places when they've gone to the sites, they have found problems that they didn't know were there — for example, like having to move a pipe.

“It's never as simple as just ordering a house from a factory putting it on a truck and dropping it into a field.

“It does take time and I tend not to use the term rapid build for that reason.

“I think modular, or new methods of construction or modern methods of construction is a better description.” 

Vacant homes tax

He also confirmed that the Government is open to increasing the vacant homes tax, which is due to increase in November to three times the rate of the local property tax, pending a review of its effectiveness.

The increased levy will apply to all unoccupied homes that have not been used as a dwelling for 30 days between November 2022 and October 31 of this year.

Exemptions will be included for homes that are undergoing refurbishment or are holiday homes.

Mr Varadkar said: “The idea behind the vacant homes tax is essentially to impose a tax on homes that are vacant without good reason.

“We have a housing crisis and it shouldn't be the case that houses or apartments are left vacant in areas of housing demand for a long period of time."