In this article we cover:
- What stage the back garden legislation is at
- What type of development will be allowed
- Renting it out and what liabilities are attached
- Other exempted development measures: from attic conversions to bike sheds
Plans to allow people to build in their back garden, and make attic conversions and 45sqm extensions planning exempt, are on track to become law by the end of July, Minister of State with responsibility for planning John Cummins said on June 30, 2026 at the press conference to loosen rules around one-off housing.
“We’ve completed the screening on that and we expect it to go to the Joint Oireachtas Committee in the next couple of weeks,” said Minister of state Cummins. “I would expect everything to be in place by the end of July.”
The rules will be reviewed 18 months after they come into effect.
Modular homes
The proposals, jointly brought forward by Housing Minister James Browne and Minister of State for Planning John Cummins, will apply to modular homes located in the rear gardens of existing owner-occupied homes.
All units will have to comply with all building regulations, including fire safety standards and other statutory requirements.
Under the proposed rules to be passed by the end of July, the homeowner will have to continue to occupy the main dwelling and the modular unit will need to have its own independent access.
The modular unit will have to be positioned an appropriate distance from the primary residence, with at least 25sqm of private garden space remaining after construction, alongside a minimum setback of 0.6m from boundary walls to facilitate access for emergency services.
Renting out the unit
The government has also confirmed its intention to extend the Rent-a-Room Relief scheme to cover these garden homes.
This would allow homeowners to earn up to €14,000 per year in tax-free rental income from a qualifying modular unit, with income above that threshold subject to tax in full.
The proposal marks a shift from earlier plans, which would have restricted occupancy of the units to family members. Ministers now intend to allow the homes to be rented under licence agreements, reducing the risk of units remaining vacant once family circumstances change.
Homeowners who build modular homes in their back garden will be liable to pay a separate Local Property Tax on that home, Revenue confirmed on the back of a request by Genevieve McGuirk, the chief executive of the Institute of Professional Auctioneers and Valuers.
More projects to become planning exempt
Alongside the new garden home exemption, the package also includes exempted development for extensions of up to 45sqm, the construction of attached self-contained living accommodation, attic conversions, subdivision works, external insulation upgrades, and new exemptions for front and rear cycle and bin storage.
Tánaiste Simon Harris said the measures are intended to reduce unnecessary planning bureaucracy while allowing local authorities to focus resources on larger housing developments and critical infrastructure projects.
Housing Minister James Browne said the initiative is designed to provide greater flexibility for homeowners rather than contribute directly to national housing targets. He added that modular homes developed under the exemption would not be included in official Government housing output figures.
Concerns about the capacity of existing infrastructure have also been addressed by Government ministers and utility providers.
Both the Taoiseach and Uisce Éireann said they do not expect significant pressure on water or electricity networks, noting that projected population growth has already been factored into long-term infrastructure planning.
If approved, the changes would represent one of the most significant updates to exempted development rules for homeowners in recent years, creating new opportunities for multigenerational living, rental accommodation and flexible use of residential gardens without the need for planning permission.
The changes were first mooted last year.
