Plans to allow homeowners to build modular homes in their back gardens and to increase the size limit for planning‑exempt extensions are moving toward approval, with a target date of the end of July.
Legislative timeline and key provisions
Minister of State for Planning John Cummins confirmed that the screening of the proposals is complete and that the legislation will be presented to the Joint Oireachtas Committee within weeks. “I would expect everything to be in place by the end of July,” he said.
The measures, introduced jointly by Housing Minister James Browne and Cummins, will apply to modular units placed in the rear gardens of owner‑occupied houses. All such units must meet existing building regulations, including fire‑safety rules and other statutory standards.
Homeowners will be required to remain in the main dwelling while the new structure must have a separate entrance. The unit must sit at least 0.6 m from any boundary wall and leave a minimum of 25 sqm of private garden untouched after construction.
In addition to the garden‑home provisions, the package expands planning exemption for attic conversions and extensions from 40 sqm to 45 sqm. It also adds exemptions for subdivision work, external insulation upgrades, and new allowances for front‑ and rear‑cycle and bin storage.
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Financial incentives and tax implications
The government intends to broaden the Rent‑a‑Room Relief scheme to include these garden‑based modular homes. Qualifying owners could earn up to €14,000 a year in tax‑free rental income; any amount above that threshold would be fully taxable.
Separate from income tax, a distinct Local Property Tax will be levied on the newly built modular unit.
Tánaiste Simon Harris said the changes aim to cut unnecessary planning bureaucracy while allowing local authorities to concentrate on larger housing projects and essential infrastructure.
Both the Taoiseach and the national water utility, Uisce Éireann, have indicated that existing water and electricity networks are not expected to face significant strain from the new garden homes. They noted that projected population growth has already been incorporated into long‑term infrastructure plans.
These proposals were first floated last year and will be reviewed 18 months after they take effect, giving policymakers a window to assess their impact.
