Vol. 541 No. 4
108 Mr. Penrose asked the Minister for Education and Science if his attention has been drawn to the difficulties faced by third level students in accessing affordable accommodation; the number of student residences available; and his plans to increase this provision. [23003/01]
In recognition of the difficulties which students have been experiencing and following consultation with third level colleges, this Government introduced a special tax incentive to encourage the provision of student rented residential accommodation in section 50 of the 1999 Finance Act. The most up to date results of a survey undertaken earlier this year indicate that already there are 2,260 additional places provided as a result of the tax incentive scheme. A further 14,523 bed spaces are under way and due for completion under this scheme. The tax relief gives 100% deduction of construction, conversion or refurbishment expenditure, which can be offset against all rental income whether derived from the premises in question or other lettings and is available for expenditure up to 31 March 2003.
As indicated in the Programme for Prosperity and Fairness, this Government will evaluate the impact of the tax incentives and will consider further action in the light of the results of the evaluation. As part of this evaluation, a survey was undertaken earlier this year and is currently being updated to establish the existing and future supply of student accommodation.
In addition to the section 50 tax incentive scheme, this Government introduced "rent a room" relief in last year's budget. It allows home owners rent out a room in their homes and have rental income of £6,000 a year tax free. The initiative has boosted the market for lodgings and encouraged householders, who would not have considered it in the past, to think about taking in students.
