When someone is raiding on the server it is causing the whole server to lag when the plugin is installed.

If the house is huge, it can lag for a while.

We had the plugin for our previous wipe and had huge bases and had no issues before. Is it possible that the last update from rust is causing the issue?

I don't know much about it, sorry. If the plug-in is slow, a yellow warning message will appear on the console.