Modular Homes in Gardens Subject to Separate Local Property Tax, Taoiseach Says No Deterrent

Revenue has confirmed that homeowners building modular homes up to 45sq/m in their gardens will be liable for a separate Local Property Tax (LPT) on these structures. This clarification followed a query from Genevieve McGuirk, CEO of the Institute of Professional Auctioneers and Valuers, who noted that while second residences are taxed, it was unclear if this applied to modular homes, which are set to be exempt from planning permission under new government regulations.

Taoiseach Micheál Martin stated this LPT liability would «not necessarily» deter people from buying them, emphasizing the high quality and significance of such housing. He believes the rollout of these modular homes will contribute to addressing the housing crisis, stressing the government's commitment to exploring all avenues for increased housing availability and construction.

McGuirk explained that for a modular home to be considered a separate residence liable for LPT, it must be permanently attached to the ground, have sanitary and cooking facilities, water, electricity, be structurally sound, and habitable. It would require its own property ID, Eircode, and valuation, with LPT payable even if unoccupied.