THRESHOLD and Age Action are the latest to voice their concern over reports of a proposed rental scheme for modular units in back gardens.

Weekend reports suggest the Government is pursuing plans to exempt garden homes from planning requirements and extend the rent-a-room relief to the owners of these units allowing for earnings of up to €14,000 a year tax-free.

Issuing a joint statement both organisations noted: ‘This is in contrast to what was first proposed last year, when it was stated that these homes were not intended for the private rental sector.

‘Threshold and Age Action strongly caution against the new proposals. Threshold’s expert experience in this area indicates that those who privately rent garden homes are often incorrectly treated as licensees, provided with little to no tenancy protections, and can live in substandard conditions, without recourse to tenant protections.

‘Extending the rent-a-room relief to these scenarios may further compound this erosion of rights, and the lack of planning requirements risks the delivery of poor-quality housing.’

The organisations said they recognise the urgent need to increase housing supply, but warned that this measure ‘comes with considerable risks’.

They continued: ‘The relaxing of planning requirements could lead to sub-standard rented homes, gaps in official data around housing density, and place unknown and additional pressure on local infrastructure systems.

“Threshold and Age Action are also concerned that creating a new financial incentive for back-garden units could expose some older homeowners to a greater risk of elder abuse, via pressure or undue influence from family members or third parties seeking to benefit from their property.

‘This could include pressure to install a garden home, to move into the unit themselves, or to allow a family member or third party to occupy or control it.

‘Threshold and Age Action are especially concerned that linking these units to the rent-a-room scheme could lead to an increase in informal licence-style rental arrangements. Licence arrangements do not fall within the protections and regulations of the Residential Tenancies Acts.

‘Renters under these arrangements – licensees – have little to no rights and often no recourse to the Residential Tenancies Board (RTB).

Age Action reports that older renters appear to be particularly affected by these licensee arrangements. This proposal risks exacerbating housing insecurity for older people, rather than addressing their housing needs. 

‘It is crucial that efforts to address housing supply do not inadvertently undermine housing security or even undermine the intended benefits of the increased supply itself. Tenant protections, housing quality and appropriate protections for older people are necessary and important.

‘We hope to work with the Government to ensure there are no unintended consequences and that the right form of housing supply is brought forward, which sees renters and vulnerable older people fully considered and protected.’

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