Plans to allow people to build in their back garden, and make attic conversions and 45sqm extensions planning exempt (from current 40sqm) are on track to become law by the end of July, Minister of State with responsibility for planning John Cummins said.

“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.

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.

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.

Homeowners who build modular homes in their back garden will be liable to pay a separate Local Property Tax on that home.

The package also includes exempted development for 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.

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.

The changes were first mooted last year.