Policy change in the rent-a-room relief scheme
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What is the main topic discussed in this episode?
The Clare Byrne Show on Newstalk. With Aviva Insurance.
Now, in a policy shift by government, homeowners will be allowed to rent out modular homes on their property as part of the rent-a-room relief scheme. Whether it'll be able to address some of the symptoms of the housing crisis remains to be seen. I'm joined now by Fine Gael's Barry Ward and Labour spokesperson for housing, Conor Sheehan, and you're both welcome to the programme. Conor, you're concerned about this. What's the problem?
Well, I'm concerned about this, Clare, because basically under the rental room scheme, and it's envisaged that if these units are allowed to be rented out, that the tenant would be treated as such under the rental room scheme, which means the tenant is treated as a licensee, which means you have fewer rights as tenants. as opposed to a tenant who would come under the cartilage of the RTB Act.
What policy changes are being made to the rent-a-room relief scheme?
So if you're a renter at the moment, particularly if you're a renter with a new tenancy, you have the six years security of tenure, but you won't have that if you are renting out one of these modular units under the rent-a-room scheme. And the reason for that is because basically, if you were to rent out a modular unit at the rear of your property to me and then sell your house, if I came under the cartilage of the RTB Act, then...
You'd have to be left there.
I would have to be left there and sold at your house, essentially.
But as it stands, you're out, you know, or you're probably out. But the Taoiseach, when he was asked about this yesterday, said that it's not going to make much sense to invest, say, up to 80,000 in a modular unit for your son or your daughter, knowing that they'll probably be gone. They'll have moved on in two or three years. But you might make that investment if you know that you can rent that to somebody else once your family member has moved out.
Well, the argument I would make is that some people would talk about investing up to 80,000 and they can invest up to 80,000, but not every landlord is actually going to do that. And we have seen examples over the years of substandard rental accommodation, modular type accommodation. rental accommodation garages sheds etc we've all seen it on on daft and i think that this is going to open the back door to poor quality expensive units um of which the rent will not now be capped because they're going to raise the threshold let's have a word with barry ward about this that is the concern isn't it that you'll have tenants in the hen house what do you say
Well, the first thing is that all of them have to comply with ordinary building standards.
What concerns does Conor Sheehan have about the new rental policy?
So that's the first thing. They're not exempt from that. They are exempt from planning. And what this plan is really about is giving people autonomy over their gardens. And you have people in the country who have large gardens. There are conditions. So, for example, you have to still have 25 square metres of garden available. It has to be separate from the house. It must be the house in which you're living. So it's not the case that, for example, if you own a rental property, you can put one of these modular homes in the back garden and rent that out. So there are a number of conditions that come with it.
How does the new scheme affect tenant rights under the rental room scheme?
But what Conor says is right. You would not be a tenant in the sense you would be if you rented an apartment or a house. You would have exactly the same status as somebody renting a room in a house under the rent-a-room scheme. To which Conor is not opposed, as far as I know, and Labour is not opposed. So I don't see why they'd be opposed to this measure, which is just one of a whole suite of measures that John Cummins in particular has put in place to help us ease the housing crisis. And if it's something that suits the needs of a particular person on a short-term basis or a medium-term basis, then is that not a good thing?
But Conor, just on that point, I mean, Labour isn't opposed, as far as I know, either to the rent-a-room scheme. So why is this a problem?
Because it's pretty much the same thing.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:01–1:02
2
What policy changes are being made to the rent-a-room relief scheme?
1:02–2:43
3
What concerns does Conor Sheehan have about the new rental policy?
2:43–3:10
4
How does the new scheme affect tenant rights under the rental room scheme?
3:10–9:56