The Government is extending the rent-a-room scheme to include local authority tenants.
It will mean people who are living in council homes are eligible to let their spare bedroom for up to €14,000 a year, tax-free.
It’s hoped expanding the rent a room scheme will add the equivalent of 28 thousand homes to the national housing stock.
It’s estimated about 10 percent of local authority homes are currently under-occupied.
Former chair of the Housing Agency, Conor Skehan, says extending the rent a room scheme is a step in the right direction.
"It is fantastic to see the debate move on from giving more money to builders to build more houses.
"I'm delighted to see the debate at least beginning to talk managing our existing housing stock."
But Dublin City Councillor Mannix Flynn is opposed to the scheme, which would see some council tenants making up to €14,000 a year tax free.
"Is Dublin City Council going to re-invent the law and actually allow a tenant, say for instance, who is in arrears to rent out a room? Or a tenant who has committed anti-social behaviour?
Fianna Fail Senator Mary Fitzpatrick says its just one part of the governments plan to tackle the housing crisis:
"It won't suit everyone, it will only work where somebody is renting a room in a property they are already living in themselves, and it will meet some need.
"Is it the solution? Nobody thinks it is."
The rent a room scheme will not affect the benefits of social welfare recipients or medical card holders.
Housing For All
According to the Irish Independent, the Housing for All progress update also states that local authority tenancies will be able to access the scheme.
"The change does not require new laws and officials expect to have the necessary administrative changes made at some stage during the summer.
"The move was signed off by ministers last week as part of a €1bn housing mini-budget to speed up the building of homes.
"As part of the package, ministers signed off on up to €150,000 per every cost rental apartment developers build, increased grants for vacant and derelict homes and waiving of infrastructure fees."
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