As we finally and thankfully come out the other side of the coronavirus pandemic, the government has stated loudly and clearly that the housing crisis will be given the same attention and focus as the pandemic. This includes the crisis in student accommodation.
Aside from the obvious impact the pandemic has had on overall supply (for every week the construction sector was closed, an estimated 800 homes were not built), the pandemic has had a significant impact on the availability of bed spaces in on campus accommodation. With the exception of NUI Galway, shared rooms are not being offered this year likely due to coronavirus concerns. This removes the cheapest option available in most universities and also decreases the number of bed spaces available.
Ultimately, increasing supply is the key to alleviating the crisis. At the minute, demand is far outstripping supply across all aspects of housing – social housing, rental market, affordable purchase, the private sector. “Housing for All” puts in place an ambitious but achievable plan to increase supply across all tenures over the next 10 years. I absolutely get that people will roll their eyes when they hear that. In some parts of the country, the crisis of student accommodation is impinging on their education now, and that is not okay.
Shared rooms are not being offered this year likely due to coronavirus concerns. This removes the cheapest option available in most universities
Housing for All does build on measures already taken in relation to new student rental protections. In July we passed legislation so that upfront payment upon the commencement of a tenancy will now be restricted to a total value that does not exceed two months’ rent – in other words, a deposit and one month’s rent in advance.
This much-needed measure means that students and their families are no longer required to pay a lump sum each term (often in the range of €2,500 to €3,500). This restriction applies to all tenancies including for students residing in student specific accommodation. A student can make a larger upfront payment if they so wish, by way of an opt-out option, but they cannot be forced to do so.
The bill also provides that the notice period to be given by students in respect of student specific accommodation will be limited to a maximum of 28 days’ notice. Students in Rent Pressure Zones are also protected by legislation which links any potential rent increases to inflation only, putting an end to the annual four per cent rent increases which we were seeing. I am acutely aware that inflation is increasing, and my department is working on legislation to cap the overall amount at which rent can increase.
We should not have a situation whereby tourists are in student accommodation while students are in hostels and hotels
In addition, in line with requests from students’ unions that student-specific accommodation is used for that purpose, I have issued a circular to local authorities to remind them of the strong demand for student accommodation in certain areas and that purpose-built student accommodation should be retained for that use.
We should not have a situation whereby tourists are in student accommodation while students are in hostels and hotels. We have also secured government approval which will allow technological universities to borrow funds to build their own student accommodation. While this alone will not solve the crisis, it is one more tool in our arsenal to get to grips with the challenges we face.
I will continue to work with Minister Simon Harris on the very real challenges students are facing and where I and my department can take action, we will.
Darragh O’Brien is the Minister for Housing, Local Government and Heritage.
