Rent-a-room scheme extension to garden modular cabins criticised

The rent-a-room scheme is due to be extended to include modular cabins, with the Government preparing to remove the need for planning permission for small houses in gardens. Picture: iStock

Opposition parties have criticised moves by the Government to allow households to rent out modular cabins at the back of their homes and get up to €14,000 in rent tax free.

The rent-a-room scheme is due to be extended to include modular cabins, with the Government preparing to remove the need for planning permission for small houses in gardens.

The plan would see households permitted to build small cabins, of up to 45sq m in size, at the rear of their properties.

It is expected this exemption could be introduced as early as this summer, with a requirement for the exempted development regulations to go through the Oireachtas housing committee first.

Currently, planning exemptions are only in place for a 40sq m extension that is connected to a property.

Options for younger and older people

The plan, brought forward by minister John Cummins, is enabled modular units as housing options aimed towards younger and older people.

One government source said the decision to expand the rent-a-room scheme to back garden modular cabins came following public consultation.

However, the plan has come in for criticism by members of the opposition. They said the Government is making a major change after previously saying there was no intention of using the modular houses for rental.

Sinn Féin's housing spokesperson, Eoin Ó Broin, referred to comments made by Mr Cummins in an RTÉ interview last February, where he said he did not see it as being a “rental measure”.

“Now, it appears that Government has changed its tune,” Mr Ó Broin said.

"Not only are [the Government] considering extending the new planning rules to private rented units in back gardens, but also extending the rent-a-room tax relief to such dwellings

This will inevitably lead to a proliferation of low-quality modular units in back gardens, with tenants being charged extortionate rip-off rents

Mr Ó Broin said Sinn Féin agreed with giving flexibility to build modular cabins, but that it should not apply to privately rented accommodation.

“It will be used by rogue landlords to rack and stack poor-quality cabins in back gardens, and charge thousands of euros to hard pressed renters,” he said.

Housing charity Threshold previously raised concerns about modular cabins being used for rentals, saying it carried “serious risks”.

Level of protection

Labour's housing spokesperson, Conor Sheehan, said tenants in these rented cabins may not have the same level of protection as others in the private rental sector.

Mr Sheehan said many individuals in the rent-a-room scheme are under licence agreements, which do not have as strong protections as tenancy agreements.

The Social Democrats housing spokesperson, Rory Hearne, said he was concerned about the removal of planning permission requirements for the cabins

He said there is a risk of “exploitation” through the changes, and he is calling on the Government to reconsider the proposal.

Government sources have defended the changes, saying the proposal is not to make the modular houses into rental accommodation.

One source said: “You can do it inside your home, so why wouldn’t you allow it in your back garden?” It’s not for widespread rental.”

They added that consultation saw people seek an expansion to allow carers use the properties, rather than having it limited to just family members. It is understood the proposal has been agreed by government leaders.