A proposal to grant planning exemptions for modular homes of up to 45sq.m in back gardens has been brought to the Cabinet.
The memo from both Minister for Housing James Browne and Minister of State John Cummins, stipulates that the homes must comply with building regulations and standards.
These changes have taken some time to get to Cabinet, but the outline of this plan is now taking shape.
In order to put a modular home in a back garden, the homeowner must be living in the primary dwelling.
Separate entrances and a certain distance from the main residence will also be required, and the garden must be at least 25sq.m.
Tánaiste and Minister for Finance Simon Harris is set to expand the Rent a Room scheme to cover these modular units, which means the owner can receive €14,000 in rent tax free annually.
Anyone charging above this will pay tax on the full amount.
Speaking as he arrived for today's Cabinet meeting, Mr Harris said that it is "important" that the garden homes measure is reviewed 18 months after it comes into effect.
"I think it's important that we take the planner out of the back garden, and that we enable planners to be freed up to work on critical infrastructure, to work on major housing developments, and provide people in this country with a degree of flexibility around what they choose to do with their own garden," he said.
"Obviously, they've got to operate within regulations, building standards and the likes, but I think this is a positive measure in a housing emergency, but also I think it's a positive planning reform measure too."
He added: "There is a housing emergency, and we have to, and I believe this instinctively, we have to remove bureaucracy and administration and red tape and make it as easy as possible for people to be able to have homes, have shelters, use their own garden space as well.
"But it is also important we look at this and keep it under tight review. So built into the proposal today will be a review within 18 months and I think that is important."
Mr Browne is expected to amend legislation to allow these modular homes to be rented using what is called a licensing agreement.
Other planning exemptions which are likely to get the green light include extensions of up to 45sq.m and a self-contained unit can also be built on to the main home.
A new exemption will provide for cycle or bin storage at both the front and back of the property, with enough space to hold either four adult bicycles or three wheelie bins.
Mr Browne said he does not expect an additional strain on local utilities, saying that the people using such homes are using the facilities that already exist.
He said the units built in this way will not counted in government housing output figures.
"There's no target here. I'm not saying a target. This is about really facilitating people in their own homes for a family member, whoever the case may be. So it's about reducing the burden. It's about simplification."
The Taoiseach also said that he expects local water and electricity services will be able to deal with the consequences of allowing modular homes in people's back gardens.
Speaking on his way into the Cabinet meeting, Micheál Martin said that "in many areas here, there is significant availability of utilities already in the case of planning exemptions. But again, we have put investment now into the Eirgrid and into Irish Water."
He added there are "very serious challenges in housing, in terms in terms of a sufficiency of rental accommodation, and we know that, and we have to put out all the stops to deal with housing, and because the younger generation need access, and anything that takes pressure off the rental market is a positive environment."
Speaking on the News at One, Minister of State John Cummins, who has been overseeing the changes, said the proposal was about "giving autonomy to people over their own homes and within their own boundaries, and it's about providing housing options".
He said the proposals for modular homes in gardens was part of a package of exemptions he was bringing forward for domestic houses including attic conversion, subdivision and external insulation.
He rejected the description of the units as 'cabins' and said that millions of euro had been invested by the producers of modular homes. All the units would have to comply with building regulations and fire standards.
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Mr Cummins said that the original proposal to restrict the units to family members had been dropped so that the units wouldn't be vacant once family members had moved on.
He said that gardens must have 25 sq/m of garden remaining when the unit is built.
There would have to be access from either side of a house, or from the rear, for fire fighters and the units must be 0.6m from boundary walls.
Connecting modular homes not a concern - Uisce Éireann
At the Housebuilding Summit, representatives from across the construction and infrastructure industries have heard about planning and zoning and the issues there are hindering house building.
But there was a general air of confidence in what the Government is doing in terms of accelerating house building.
The connection of utilities such as water and electricity has been an issue for the delay in units being available.
Uisce Éireann said connecting modular homes would not be a concern; that population growth is already in their infrastructure plans.
Read more: Renters thrown 'to wolves' over modular homes plans, says Cairns
Mairéad Conlon, Uisce Éireann's Asset Strategy Manager said "in the national water research plan.... population growth is planned for".
She said a modular home or other home would not make a difference in terms of the infrastructure required becuase all population growth has been included in Uisce Éireann's future plans.
Brendan Slattery, Head of Planning and Environment at legal firm McCann Fitzgerald said it "makes perfect sense to make land available; and to increase the densification of homes where there is already critical infrastructure".
He said firms who deliver these modular hoems will take the time to ensure they are in compliance with the rules.
Mr Slattery said these homes will be well built and that they will be sensible expansions of current homes.
Additional reporting PA, Maggie Doyle
