Dáil Éireann Debate, Tuesday - 27 February 2024
3. Deputy Mairéad Farrell asked the Minister for Further and Higher Education, Research, Innovation and Science following on from his confirmation that his officials were examining the issue of 51-week leases for purpose-built student accommodation, if he can update on same. [9105/24]
View answerI seek confirmation the Minister's officials are examining the issue of 51-week leases for purpose-built student accommodation and ask for an update on that.
I thank the Deputy for raising this issue. I have been working closely with the Minister for housing, Deputy O'Brien, on this matter. I thank him and his Department and officials for their continued support and engagement. We both agree the actions of these providers is unacceptable. While a 51-week lease may suit some third level students - perhaps those who require to be in a university for a longer period than the traditional college year - it is not desirable or affordable for the majority of students and we intend to take actions to mitigate what could become a barrier in some cases to accessing higher education. This week I will be writing to the local authority in Dublin and to other relevant local authorities and seeking an urgent assessment from them to ascertain if providers are operating in compliance with specific planning conditions for the developments. I may have my view on that but it is not for me to make that determination. It is important that the local authorities carry out that urgent assessment because providers must operate in accordance with specific planning permission for developments.
In addition to that, I would like to see the law changed in this area. The Minister, Deputy O'Brien, and I are examining legislative amendments to make sure contracts are prioritised for students in the academic year under the Residential Tenancies Act. I thank the Minister for his continued work on that.
Students should continue to contact providers directly to ascertain the availability of their accommodation for the academic year. Under the residential tenancies Act 2016, landlords cannot ask anyone to pay more than the equivalent of two months' rent to secure a tenancy. It is important we continue in this Chamber to amplify that message. I also ask students and families to familiarise themselves with the terms and conditions of their lease agreements before entering into same. I remind all students that student accommodation is within the remit of the Residential Tenancies Board, RTB, which provides a confidential dispute resolution service. A student can contact the RTB with a complaint or dispute regarding their accommodation. This is an area I want to see progress in.
Gabhaim buíochas leis an Aire. I welcome that because it is an issue of huge concern among students. It is reflective of the wider housing crisis. The delivery of purpose-built student accommodation by large vulture funds is becoming mainstream and common, meaning many students are relying on it, so much so that vulture funds have more student beds in Dublin than all the Dublin universities combined. The same goes for Cork and I am concerned the same will be the case for Galway in time. For the joys of sleeping in a room that is the size of the average car parking space, students are paying over a grand a month.
As if that was not bad enough, now we are hearing about 51-week leases. Not only students but also parents have been in touch with me. They cannot pay the 39 weeks, which is the usual academic year; now they have to pay an entire calendar year. I welcome the progress and hope we can get this sorted before many people are caught in the trap of the 51-week lease.
I am not satisfied about the 51-week contract situation. I intend to reach out to the local authorities this week to ask them to carry out an urgent assessment and I intend to work with the Minister, Deputy O'Brien, on legislative change in the area. This highlights the need to be less reliant on the private market and to build more college-owned student accommodation. It is the reason we are activating the building of student accommodation in DCU and Maynooth, the reason we are trying to work with UCD and Trinity to get those projects over the line and the reason we have the Higher Education Authority meeting this week with the universities, inviting them to develop proposals, send in ideas for the development of new accommodation or the refurbishment of vacant accommodation and get those proposals into us by 15 March. It is the reason we have changed our approach to student accommodation. We need to make sure we have more college-owned stock.
We are taking a number of measures on affordability. Reducing college fees this year for 96,000 students helped, as did increasing the student grants from January. Extending the renter's tax credit makes a real difference, putting €750 back in the pockets of students or their parents.
Yes, but we also need to be frank here. Because of the over-reliance on the private sector, specifically now on vulture funds for providing purpose-built student accommodation, we are in this crisis. Of course I want to see purpose-built student accommodation by universities at an affordable rate.
I have a few concerns. It does not seem to me there will be a move towards TUs being able to borrow. It will be an issue of public-private partnerships. That has not worked in the past. I am concerned about that. I am also concerned about the vacant property refurbishment grant bearing fruit until I see it in action. Parents are paying €14,000 for rent and that is having an impact on people being able to access third level education. I hear what the Minister is saying but until I see action I am deeply concerned.
It is the Deputy's job and duty to keep a watchful eye on this and she will do that well but by any objective measure we have seen an increase in college-owned student accommodation and in general student accommodation this college year compared to last year. We have seen more measures to help students with the cost of rent this year than last year and an increase in the student grant this year compared to last year. We saw a reduction in the college fees this year and also last year. We are making tangible efforts to help with the cost of education and increase accommodation supply but we have more to do.
When it comes to the technological universities, such is the scale of the challenge of meeting the housing demand that I do not think we should make ourselves prisoner to any one way of building. We need to look at all ways, whether the refurbishment of vacant stock on or near campus, the provision of devolved grants, public-private partnerships or access to the borrowing framework. We need to keep all options on the table but the first job is to get the ideas in by 15 March.
