Dáil Éireann Debate, Thursday - 8 September 2022
1352. Deputy Holly Cairns asked the Minister for Further and Higher Education, Research, Innovation and Science the steps he is taking to address the shortage of accommodation for students attending third level courses in Cork city and county; and if he will make a statement on the matter. [43904/22]
Amharc ar fhreagra1353. Deputy Holly Cairns asked the Minister for Further and Higher Education, Research, Innovation and Science his engagement with the Minister for Housing, Local Government and Heritage concerning the shortage of accommodation for students attending third level courses. [43905/22]
Amharc ar fhreagraI propose to take Questions Nos. 1352 and 1353 together.
I am acutely aware of the issues being faced by students trying to source affordable accommodation both in Cork City and county, and elsewhere across the country.
It must be recognised that fundamentally, the challenge is one of supply of housing more generally. As a country, we know that 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 setting out a series of actions which will be delivered to address the housing crisis. The plan is backed by the largest housing budget in the history of the State to transform our housing system, in excess of €20 billion.
Since taking up office, both myself and my Department officials have engaged and continue to engage on as ongoing basis with the Minister and Department of Housing, Local Government and Heritage (DHLGH) and the wider higher education sector and relevant stakeholders on student accommodation issues including within the context of the advancement of the Government's Housing for All policy.In June I met with the presidents and chairs of all the traditional universities and technological universities to discuss any immediate proposals they may have identified or be able to identify in relation to any additional student accommodation provision that may be pursued in the short to medium terms and the Department is continuing to liaise with the higher education institutions in this regard. In a welcome development, the sector indicates that hundreds of additional bed spaces are to be made available by higher education institutions for the start of the forthcoming academic year and NUIG is to deliver some 670 new bed spaces later next year.
With regard to Cork specifically, my Department understands that, across both private and HEI-owned purpose built student accommodation, there is currently in the region of 5,000 bed spaces is available in Cork City, and we are aware of a number of developments on site that are expected to add in the region of 1,000 further bed spaces in 2022 including 255 bed spaces being delivered by UCC.
In July, following a case that I made to the Cabinet Committee on Housing, my Department has received support to progress a new policy that bridges the challenging gap between the viability of delivering purpose-built student accommodation and subsequent rental affordability for students. This could involve the State assisting with the cost of building student accommodation in return for affordability commitments on rent. Work is continuing on this policy and the Department is also ready to work with any of the new technological universities, including MTU, to support them to borrow to build student accommodation.
On rent affordability, following engagement between my Department and DHLGH, restrictions have 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 is now 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, including in Cork City and parts of the county, and students now have recourse to the Residential Tenancies Board for dispute resolution where appropriate.
In addition to the extra accommodation which is being put in place this year, amounting to hundreds of beds as I have stated, it is also open to homeowners to rent a room to students. A homeowner can rent a room, retain their social welfare entitlements where applicable and earn up to €14,000 in rental income before having to pay tax. All higher education institutions continue to support their students to find accommodation in the private rental sector through, for example, the encouragement of room rental or ‘student digs’ in family homes and many also maintain online databases where students can search for and check out accommodation, advertisements for room rentals can be placed and advice on sample rental agreements provided. Institutions are actively promoting this option in their localities. This is an approach which I fully support and encourage.
