Modular Homes Proposal to Face Cabinet Review Within 18 Months
A proposal on modular homes is set to go before Cabinet on Tuesday, with ministers saying it could be reviewed within 18 months. The plan would allow back-garden units to be built without planning permission and then rented out privately, in a move the Government says could add supply to the rental market.
The proposal would exempt units up to 45 square metres in gardens behind homes from requiring planning permission, while leaving 25 square metres of the garden free and requiring side access to the property. Housing Minister James Browne said the units would not be counted in the Government’s yearly housing figures, and he said the proposal was about simplification rather than forecasting how many units may be built.
What the Cabinet is being asked to approve
The Cabinet discussion comes amid a push to reduce pressure on the rental market and on the planning system. Taoiseach Micheál Martin said the proposal would provide “an added layer of potential supply” and would help “free up the planning system” from too much focus on smaller developments.
Martin said there are “very serious challenges in housing, ” including rental accommodation, and described the measure as a positive step for people waiting for more options. He said anything that eases pressure on the rental market is welcome, while also pointing to wider questions around rental protections and tenancy protections for people outside the traditional tenancy model.
Tánaiste and finance minister Simon Harris said the policy would help “take the planner out of the back garden” and free planners to focus on critical infrastructure and major housing developments. He said people should be able to use their own garden space, while still operating within regulations and building standards.
Modular homes and private renting
The Government has confirmed that these units will be allowed to be rented out privately. Earlier discussions had considered whether they should fall under the Rent-a-Room Relief scheme, which allows a person renting a room in their home to earn up to €14, 000 tax-free, but that path will not be taken.
That shift matters because the policy now opens the door to a wider private rental use for modular homes placed in back gardens. Ministers are presenting the change as both a housing measure and a planning reform, with Browne stressing that the review will come within 18 months.
Concerns raised over standards and enforcement
Housing advocacy group Threshold has warned that “substandard” garden units could be rented without proper inspections. Planners have also raised concerns that allowing them to be rented privately risks unintended consequences for residential amenity, infrastructure, access, parking and enforcement.
Those concerns are now part of the political test for the proposal as ministers prepare to move it through Cabinet. The Government says the scheme is intended to simplify the system, but critics are already flagging the need for safeguards if modular homes become a more common feature of back gardens.
What happens next
The proposal is due before Cabinet on Tuesday, and the Government says the exemption would be reviewed within 18 months. If approved, the measure would mark a significant shift in how garden units are treated, while also raising fresh questions about inspections, tenancy protections and the practical limits of using private garden space for housing.
