Government must rule out allowing landlords rent out garden modular units

29 March 2026

Government must rule out allowing landlords rent out garden modular units - The Labour Party

  • Beds in sheds not a solution to the housing crisis

Labour Housing Spokesperson Conor Sheehan TD has called on Government to rule out allowing landlords to rent out modular units in back gardens.

Deputy Sheehan was speaking after a report in today’s Sunday Independent which said that the Government are planning to let landlords rent out modular units availing of the new planning exemptions.

Deputy Sheehan said:

“When this was first mooted in February 2025, I warned that beds in sheds were not a solution to the housing crisis. While I accept and agree that more flexibility is need in relation to modular units, we cannot create a system which allows renters to be exploited.

“The Sunday Independent reports today that government will allow homeowners place modular rooms in their back garden without planning permission and rent these out tax free for over €1,000 a month.

“It seems now despite their earlier protestations that Fine Gael and Fianna Fáil now think it is acceptable for renters and students to sleep in a shed beside the lawnmower.

“This is deeply concerning because we have already seen numerous examples of deeply unsuitable rental accommodation on Daft and other platforms in recent years and if Government give landlords the green light to rent these units out, that will only explode.

“As I stated in February 2025, without stating the obvious, garden sheds, no matter how well designed, are not a long-term substitute for proper housing, affordable housing, supply of rental homes or the financial barriers to homeownership.

“Renting out modular units in back gardens cannot be used as a solution to the student housing crisis as Government seeks to expand the number of digs to 4,000 per year and this cannot be done by allowing landlords to rent out substandard prefabs.

“My concern here is around the potential unintended consequences of this and if these developments enter the private rental sector market without robust safeguards or planning standards. Many of these units could be rented out without appropriate planning or safety frameworks, or tenancy agreements, in place.

“There will be no oversight process or regulation of these once they meet the requirements of the proposed exemption regime. Further different rules also apply to rent a room tenancies some of which do not have to be registered with the RTB.

“An increase in the number of units not requiring planning permission in the private rental market will lead to greater gaps in official data on the number of garden homes and their location.

“This latest proposal is completely at odds with what the Minister of State previously said, and will result in neighbourhood tensions and conflict, and create serious problems in the private rental sector.”

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