Ivana Bacik
Question:71. Deputy Ivana Bacik asked the Minister for Further and Higher Education, Research, Innovation and Science the details of the proposed use of the cost rental model for student accommodation. [12711/22]
View answerTuesday, 8 March 2022
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Written answers
I am very conscious of the challenges faced by students in relation to student accommodation, and my Department and the Department of Housing, Local Government and Heritage are working closely together on these issues.
Fundamentally the underlying issue is one of supply and there is a need to increase the supply of all types of accommodation including student accommodation. That is why Government launched Housing for All led by the Minister for Housing, Local Government and Heritage which sets out a series of actions which will be delivered to address the housing crisis backed by a transformative budget of €20 billion.
In their ambition to deliver student accommodation, the third level sector is facing the same issues which are affecting construction developments globally, including disrupted supply chains and other constraints. Very significant progress is being made in Government's overall housing policy with both housing completions and commencements showing significant acceleration and the construction workforce back to pre-pandemic levels. Notwithstanding positive recent trends, construction costs and other constraints are acting as a deterrent to institutions in proceeding with new developments. My Department and the Department of Housing, Local Government and Heritage are continuing to consider whether there are options that may be open to us to support increased supply within affordable rental levels.
With this in mind, I am working with my officials to consider immediate options and those initiatives which can be achieved in the more medium term.
I have recently written to all universities, technological universities and institutes of technology asking them to identify any potential local solutions which could contribute to increased supply ahead of the next academic year. This may involve the repurposing of existing buildings.
My Department is working with the Department of Housing, Local Government and Heritage to examine how student accommodation can be incorporated into other developments aimed at boosting housing supply such as the Land Development Agency's plans in Limerick. In my view student accommodation should form part of the overall residential mix.
On affordability, restrictions have also been put in place to limit the amount that students can be required to pay up front for their accommodation, ending the practice whereby students were required to pay a lump sum up front each term. The total amount that anyone is required to pay to a landlord by way of a deposit or an advance rent payment to secure a tenancy to no more than the equivalent of 2 months’ rent- that is one month’s rent, and one month’s deposit. In addition, student accommodation is subject to Rent Pressure Zone caps.
I will bring a policy paper on student accommodation to the Housing Cabinet Committee at the beginning of April.