Oireachtas Joint and Select Committees

Thursday, 14 June 2018

Joint Oireachtas Committee on Housing, Planning and Local Government

General Scheme of the Residential Tenancies (Amendment) Bill 2018: Discussion (Resumed)

9:30 am

Mr. Michael Kerrigan:

The majority of our concerns relate to student accommodation, which is the responsibility of several Departments. Mr. O'Brien mentioned support for people looking to get into the market and invest in the market. Higher education institutes are eager to get into the market. We have been waiting years for a borrowing framework for institutes of technology that seems no closer to being delivered. A grant for higher education institutions to invest in student accommodation is needed and it was recommended in a 2015 HEA report. The student accommodation strategy launched last summer identified an excess demand for 23,500 beds in Ireland last summer, which is to increase to almost 26,000 next year and will still be at almost 21,000 in 2024. Solving the student accommodation crisis will go a long way to solving the accommodation crisis in the private rented sector. Recent international research indicates that students who live close to or on campus have higher rates of retention and scores on development scales than commuter students.

Higher education institutions have come to rely heavily on income from international student fees, particularly in the past five years. Ireland is expected to have another 37,000 international students by 2020. Those students spend significantly in the economy and there is associated income from their friends and family who visit as tourists. However, the availability of on-campus accommodation is a prerequisite for attracting international students.

There is significant demand for bed spaces for students with disabilities for various reasons. The Minister of State with responsibility for higher education, Deputy Mitchell O'Connor, stated in the Dáil a number of weeks ago that price is a function of supply and demand, but with the projected excess demand in 2024, we cannot continue to wait for supply to meet demand. We can wait no longer for a borrowing model for institutes of technology. Room prices have risen to more than €1,000 per month. We cannot be content to try to minimise the increases but, rather, we must see prices decreasing.

The main issue we have with the Bill is not what is in it but, rather, what is missing. We have raised concerns with the committee over the lack of regulation for purpose-built student accommodation. Deputy Ó Broin mentioned that the RTB addressed issue that before the committee. Students at NUI Galway have made several complaints and we look forward to hearing the outcome of those complaints.

For several years, USI, along with the Departments of Education and Skills and Housing, Planning and Local Government, ran a homes for study campaign aimed at getting homeowners with spare rooms to rent them to students. Such homeowners can earn up to €14,000 a year tax free through the scheme. We hope to increase that number by €4,000 by the end of 2019, which we hope will alleviate some of the demand on student accommodation. However, the Residential Tenancies Act 2004 outlines that it does not apply to a dwelling in which the landlord resides, which has caused significant issues for students living in digs-style accommodation that we encourage them to take on. Such landlords are not obliged to provide a rent book or statement of paid rent and there is no legal requirement for the accommodation to meet minimum physical standards. Notice of termination is decided upon by the landlord and, although it is supposed to be reasonable, that is not defined. The landlord is not obliged to register with the RTB, while the student cannot use the board's dispute resolution service if a disagreement arises and is not protected under the Equal Status Acts, which prohibit discrimination on the basis of gender, civil or family status, age, race, religion, disability, sexual orientation or membership of the Traveller community. We would like this Bill or another to address the issue of protecting students in purpose-built accommodation under the Residential Tenancies Act.

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