Simon Harris (Wicklow, Fine Gael) | Oireachtas source

Every euro we put into student accommodation we expect to be returned in the form of below-market rents. Let us say we are funding 30% of a college's development. We then expect at least 30% of the beds to be provided and ring-fenced below market rent. We see in the data every year that student accommodation is oversubscribed, even with current market rates. I think Maynooth University has six applications for every single student bed on campus. As there are students who cannot afford these, I want to ensure that any investment made by the State is returned in full with below-market rents for these units. That is the approach we are taking. I am trying to be balanced on this because I am trying to face two different challenges here and both are equally important. One is availability and the other is affordability. I want to see as much student accommodation built as possible.

We can come at addressing affordability from a number of angles. There is the one I have just suggested, where whatever we put in we get the same amount back as a percent below market rent. There are obviously also things like student grants or other ways we can help people. We will probably agree on this next point. I am conscious about ten or 11 years ago when the SUSI grant was introduced, largely speaking people felt it met the cost of going to college and was much closer. I accept that it does not now for many students, especially those who must live outside home. Both availability and affordability of accommodation are important conversations and I need to ensure we do both. May absolute priority is getting supply up and then looking at how we can reduce the cost to the student, through the clawback with the below-market rent units or the student grant or reduction in fees.