Dáil Éireann Debate, Wednesday - 13 October 2021
82. Deputy Christopher O'Sullivan asked the Minister for Further and Higher Education, Research, Innovation and Science the measures in place or planned to increase the supply and affordability of student accommodation; and if he will make a statement on the matter. [49816/21]
Amharc ar fhreagraI’m acutely aware of the challenges facing students in securing accommodation this year, and my Department and the Department of Housing, Local Government and Heritage recognises this as a critical issue and are working closely together to address these issues.
Approximately 40% of students who rent accommodation do so in purpose built student accommodation, with 60% in the wider private rental market. Accommodation shortages in the private rental market, which have been made worse by the effects of Covid, have impacted significantly on students this year.
Fundamentally, the challenge is one of supply. As a country, we need to dramatically increase the supply of all types of housing and accommodation, including student accommodation.
That is why the Government has launched Housing for All, led by the Minister for Housing, Local Government and Heritage. This sets out a series of actions which will be delivered to fix the housing crisis. The plan is backed by the largest ever housing budget in the history of the State to transform our housing system, in excess of €20bn.
We have also been taking steps under the National Student Accommodation Strategy to support increased supply.
This has included ensuring that higher education institutions have access to low-cost financing. Since 2017, the Housing Finance Agency has approved a total of €157 million in loans, to support the provision of more than 1,400 new student bed spaces across three universities.
During the Summer, together with Minister Donohoe and Minister O’Brien, I announced that €75 million of financing had been successfully sourced for the Council of Europe Bank for the building of student accommodation in universities.
Housing For All also contains a commitment to support technological universities to develop purpose-built student accommodation, through access to appropriate financing, and a specific action in relation to legislating to allow for Technological Universities to borrow from the Housing Finance Agency. I will be working to progress this with colleagues across Government.
Officials from the Department of Further and Higher Education, Research, Innovation and Science worked with the Department of Housing, Heritage and Local Government on legislation which should ensure greater affordability of student accommodation. The Residential Tenancies (No.2) Act 2021 restricts any upfront payment required to secure a tenancy or license (including rent, deposit and any other charges) to no more than the equivalent of two months’ rent, and limits payments thereafter to one month’s rent at a time. This legislation also applies to students residing under license in student-specific accommodation, allowing students to pay monthly. My Department has also been engaging with the higher education sector, together with the Department of Housing, to work through the range of issues identified by institutions to seek to develop a stronger pipeline of student accommodation.
