2026-05-19

187. Deputy Conor Sheehan asked the Minister for Housing, Local Government and Heritage if he will carry out a review of the licensing system in relation to the Government’s plan to allow landlords to rent out modular units adjacent to the principal private residence under the proposed revised exempted development guidelines; and if he will make a statement on the matter. [37482/26]

I thank the Cathaoirleach Gníomhach. I wish to ask the Minister if the Government will carry out a review of the licensee system in relation to the plan to allow landlords to rent out modular units adjacent to the principal private residence under the revised proposed exempted development guidelines. The reason I ask is because there are a number of loopholes with the licensee system and the protections that are there for tenants are non-existent.

A principal private residence is somebody's own home. We have a rent-a-room scheme at the moment where people can rent a room out within their own property. The modular units that would be on principal private residences, those being, people's homes, are being deemed an extension of their homes in that respect. Landlords cannot use this scheme. If you want to call people renting out a room in their own home "landlords", so be it, but this is about people who, in one respect, are able to supplement their income in their own private residence. It is also provides people with somewhere they can live and if a rent is being charged, there is a tax credit on those principal private residences, or people's homes, when they rent out a room. That acknowledges the very different nature of those situations.

I raise this issue particularly in light of a very good report that Threshold did last October looking at the licensee system and the category of people in the licensee system who were, when it came to renters' rights, effectively invisible. The rent-a-room scheme does not come under the RTB Act, so there is no security of tenure there and no real renter's rights. That might be fine when you are talking about a room in someone's house but if you are talking about a modular unit, it is a separate physical entity. What we do not want to do is create a situation where we inadvertently create another shadow rental market. I know when this was first mooted the intention was not to allow landlords to rent these out. Then that was changed. I am looking for a quick review of the licensee system in order to make sure that if landlords are allowed to rent these out, tenants at least have some basic sense of protection.

People are obviously renting out a room or modular unit in their homes. It is a very different scenario than a landlord renting out a property. However, it is acknowledged that people are renting out those rooms, albeit in people's homes, which are protected under the Constitution. It is a balancing act and a difficult situation. We want to ensure that anybody who is renting is being protected while recognising that these are people's own homes and that, if someone wants to rent out a room in their home, they are not constrained in the event they need that room back or whatever the case may be. This is obviously quite a balancing act and can be quite a difficult situation but ultimately it has to be recognised that, in regard to these people who are renting out these rooms, those are their own homes.

My concern here in relation to the licensee system is that in the arrangement they have with the person from whom they are renting the room, most people do not even realise it is a licensee agreement until there is a dispute. Then when there is a dispute and they go to the RTB, they find out that they, in effect, do not have very many rights. There is a real need for clearer regulations that safeguard licensees, who are very much in a grey area. There are very limited grounds on which a licensee can challenge a sudden eviction or rent increase. If the Government is going to go ahead and allow landlords to rent out modular units adjacent to the principle private residence, then that needs to be done in tandem with a review of the licensing system to safeguard renters.

I will certainly keep the Deputy's concerns in mind. He comes from a position of genuine concern on this issue and for those who are renting out rooms. We know that the vast majority of people renting out rooms in their own homes and who will be renting out modular units under licence are good, local people. There will always be, of course, a certain number who will abuse a situation and we want to see those people facing the most stringent of punishments, if you like, or the responsibility that would be expected of anyone who would behave in an unacceptable manner. As I said, however, these are people's own homes, and that is why there is a distinction made between someone renting out a room in their home and landlords.

Given that we have two minutes and we are gone well past prepared questions, I am going to finish oral questions with the Minister there and move to Topical Issues, or else we are going to Deputy Conor Sheehan on Question No. 197.

I would give it to Deputy Sheehan.

I think we will conclude oral questions there. We are gone very far off piste-----

See, I was magnanimous.

-----which is all right, but we will move to Topical Issues.