Estate agent doesn't predict 'rush' on modular homes

A local estate agent has given a lukewarm welcome to changes to planning exemptions, proposed by government, aimed at giving homeowners greater freedom to adapt their homes.

The Department of Housing also says the first substantial update in exemption rules in 25 years will also ‘free up’ planners to focus on more complex projects.

According to the Department: “The changes are motivated by the practical need for homeowners to maximise the efficient use of residential space through enhancements, expansion or adaptation if they wish to do so with their homes.”

The proposed change, which grabbed the most headlines, was related to detached exterior dwellings or, modular homes.

The government proposes to exempt detached homes between 32 and 45 sq m, and linked to the services of a main house, from requiring planning permission.

To facilitate this, the government will also exempt these homes, if they are rented out, from the Residential Tenancies Act.

In order to put a modular home in a back garden, the homeowner must be living in the primary dwelling.

Separate entrances and a certain distance from the main residence will also be required, and the garden must be at least 25 sq m in size.

The Minister for Finance is also looking at the tax on auxiliary dwellings and how it interacts with the ‘Rent-a-Room’ tax relief currently in place with the intention of “bringing forward any necessary amendments that he considers appropriate”.

Tánaiste and Minister for Finance Simon Harris is set to expand the Rent a Room scheme to cover these modular units, which means the owner can receive €14,000 in rent tax free annually.

Anyone charging above this will pay tax on the full amount.

Other proposed changes being brought to cabinet include:

- An exemption for homeowners who wish to sub-divide their principal dwelling to create up to one additional self-contained unit. The new unit must have a minimum floor area of 32 sq m

- An exemption for the addition of dormer roof box/roof light on a principal dwelling

- The exemption, which already exists for an extension on a principal dwelling of 40 sq m has been increased to 45 sq m

- The exemption for a structure in the back garden (such as a shed, store, home office or gym) will be increased from 25 to 30 sq m

The relevant building control and fire regulations will apply in all cases.

Local estate agent, Declan Woods of Sherry FitzGerald, Cavan Town welcomes the new regulations “if they will in any way alleviate the current housing crisis” but he caveats that with “but they must be subject to strict and robust supervision by local authorities so that we don’t have rogue parties erecting unsightly and unsafe buildings on their grounds”.

Mr Woods, who is also a board member of the Institute of Professional Auctioneers and Valuers (IPAV), says he doesn’t see modular homes as an assistance to buyers who say, want to get on the property ladder for the first time.

“An existing owner who wants to go down this route can do a quick internet search and will find that one of these constructions could cost between €120 and €150,000,” he said. “The rent cap is €14,500 per annum so I don’t see people making the investment.”

“A garage, working office, all-weather games space or tennis court will all add incrementally to the value of a property but this is a larger investment that has to be considered.

“I hope, in essence, that these rules will alleviate in some way the crisis but it has to be regulated strong to ensure we don’t have insecure and unsafe dwellings but, I don’t see a rush.”