Mr. Paul Lemass:

I thank the Chairperson and members of the committee for the opportunity to appear before them to discuss the important issue of student accommodation. I am joined today by Ms Patricia Lee, Ms Niamh Griffin and Ms Nicola Finnegan who work in the Department's dedicated student accommodation unit. I welcome the committee's interest in this issue. I begin by emphasising the Department acknowledges that access to affordable and appropriate accommodation is an essential part of the student experience and a key factor in supporting participation in higher education.

The number of students participating in higher education in Ireland continues to grow, which brings significant pressure to bear on the existing stock of student housing, further compounded by constrained supply in the wider rental market. Many students report difficulties securing suitable accommodation near their institution, with affordability a particular issue for lower income and underrepresented groups. Traditionally, student accommodation has been provided through a combination of publicly funded institutions and the private sector. This model supported growth in student numbers for many years, but recent developments have significantly challenged its sustainability. The viability of student accommodation has been particularly impacted by the Covid-19 pandemic and subsequent inflationary pressures.

While approximately 5,000 new student bed spaces were delivered during the Covid period, the number of completions dropped significantly in the post-Covid period. The Society of Chartered Surveyors Ireland has reported that construction cost inflation over the past three years has been shaped by a series of evolving economic factors. In 2022, inflation reached record highs, driven primarily by surging energy prices, global supply chain disruptions and acute labour shortages.

In response, the Government has taken a series of steps to stabilise the sector and improve availability, viability and security of tenure for students. To strengthen the policy framework, a dedicated student accommodation unit was established within the Department. While this was informed by the recommendations of the joint committee's report on the future funding of higher education, its creation was primarily in response to Housing For All, which called for both short- and long-term policy responses to the issue of student accommodation. Students were formally brought under the scope of the Residential Tenancies Act 2004, which extended key protections for those living in purpose-built student accommodation. This change gave student licensees access to the dispute resolution process of the Residential Tenancies Board, RTB, and ensured greater consistency in how student housing is regulated. Subsequent legislative changes in 2024 introduced further safeguards tailored to students' needs, including a standardised 41-week tenancy term aligned with the academic year and the ability to exercise a 28-day notice period between May and October. The Act also strengthened rules on upfront payments, thereby reducing ambiguity. These changes provide students with greater protection and flexibility, while encouraging fairer practice among providers.

The rent a room relief was increased to €14,000 from 2017 to incentivise homeowners to rent out spare rooms in their homes, particularly to students and others in need of affordable accommodation. This tax-free income threshold was designed to make it more attractive to contribute to easing the rental market pressures, especially in areas with limited housing supply.

The Department also issued guidance and sample licence agreements to higher education institutes, informed by direct engagement with student unions, to support local responses and consistent practices. These interventions highlight the importance of this issue for the Government and in that context, the Department's role is threefold. First is to support a co-ordinated approach across government and with institutions to improve supply. Second is to ensure that the student voice is reflected in policy development, including around affordability, quality standards and tenancy protections. Third is to work with the Higher Education Authority, higher education sector and other stakeholders to explore sustainable models of funding, delivery and regulation of student accommodation, as well as affordability supports.

In delivering on these responsibilities, the Department is employing a range of targeted measures to address the student accommodation challenge in a strategic and evidence-based way.

We are employing four key tools, namely, the standardised design to enable efficient delivery and value for money for the State; enhanced supply and demand modelling to inform planning and public investment; the technological sector student accommodation programme to deliver regionally balanced campus-specific projects; and a national survey to capture students' lived experience and housing needs.

The short-term activation programme launched by the Department was a critical early intervention to help with the supply of accommodation in the short term, providing funding to higher education institutes, HEIs, to build accommodation that had planning permission but could not proceed due to the high cost of construction. Some €100 million in capital investment from the national development plan was committed over the period 2024 to 2026. Funding was allocated to HEIs for purpose-built student accommodation projects and as part of the funding conditions, a percentage of new student beds will be ring-fenced for students from target groups identified in the national access plan. These designated beds will be offered at a reduced rental rate to support access to higher education for underrepresented and disadvantaged students. This demonstrates that although this is a policy for all students, there is an emphasis on providing accommodation for the most disadvantaged in line with the national access plan.

Subsequently, following a request from the Minister for Further and Higher Education, Research, Innovation and Science, the technological sector student accommodation programme was launched to provide a vehicle for delivering new, affordable student accommodation in a targeted way throughout the country. This is being co-ordinated on behalf of the Department by the HEA and is currently progressing through the infrastructure guidelines process, which includes strategic assessment and preliminary business case.

Stage 1 of the programme included the development of a supply and demand model and a programmatic approach for HEIs to submit preliminary business cases for student accommodation. As part of this first stage, HEIs submitted strategic assessment documents outlining proposed projects last year. The HEA undertook an evaluation of this long list and provided a report to the Department with 53 proposals, including for purpose-built student accommodation both on and off campus, for leasing joint ventures and repurposing of vacant or derelict property.

The second stage will involve the development and assessment of the initial preliminary business case, comprising a PBC narrative, financial model, economic model and multi-criteria analysis model. The programme will align with all criteria outlined in the infrastructure guidelines process regarding evaluation, planning and management of public investment projects. Projects for progression under stage 2 will align with this process, ensuring that locations are chosen based on strategic fit, feasibility and alignment with national policy objectives.

In 2023, the Department worked in close co-ordination with the Department of children to assist in the humanitarian accommodation response to refugees and agreed a protocol on the use of student accommodation for international protection and beneficiaries of temporary protection. Due to decreased need to accommodate those seeking temporary protection, the Department of children recently undertook a review of its accommodation contracts. As a result, approximately 1,800 beds will return to the student accommodation sector this year.

Following a recommendation from the 2023 residential cost construction study report, the student accommodation standardised design study began in August 2024 to establish design standards that promote consistent, cost-effective and high-quality student housing using modern methods of construction. The Minister, Deputy Lawless, published the resulting design guide for State-sponsored student accommodation on 24 June 2025, developed through extensive literature reviews, stakeholder engagement and benchmarking. The guide reflects inputs from students, parents, providers and industry experts. As an iterative framework, it incorporates best practice to support the efficient delivery of student accommodation, ensuring value for money for the State, while also developing modern residences that are functional, sustainable, maintainable, flexible, safe and architecturally well designed. The guide adopts a bottom-up approach to define minimum space requirements for bedrooms, bathrooms and communal areas, offering flexibility with room types, including single, twin and double rooms and options for shared or en suite bathrooms.

Looking forward, the Department is committed to delivering further progress through a range of planned measures. While the guide sets out design standards specifically for State-sponsored student accommodation, it is intended that relevant standards will be identified for broader application, including privately led student accommodation developments, with a view to incorporating them into section 28 planning guidelines. Preliminary business cases are being progressed through the technological sector student accommodation programme, TSSAP, pipeline to increase supply. In parallel, the Department continues to engage with the Department of housing on rental reform measures to ensure that students' unique needs are considered.

All of this progress will be crystallised and complemented by a new long-term student accommodation strategy which is currently in development. The vision for this strategy is to ensure that the availability and rental cost of accommodation no longer act as a barrier to access or progress through higher education. Its focus will be on measures to increase equitable access to higher education. By addressing these challenges, we aim to create an equitable environment where students, regardless of their background, have the opportunity to fully benefit from the opportunities provided by higher education.

The Department remains committed to working with our colleagues in the Higher Education Authority to advance the range of student accommodation initiatives outlined to the committee today. I welcome members’ questions and look forward to continuing engagement with the committee to ensure our approach to student accommodation is fully responsible, sustainable and fit for the future.