Eamon Scanlon (Sligo-Leitrim, Fianna Fail) | Oireachtas source

I wish to lend my support to the Bill. I thank Deputy Ó Broin and Deputy Funchion for bringing the Bill to the House tonight.

I fully support the Bill to expand the provision of rent pressure zones to cover purpose-built student accommodation. The Bill basically reflects an identical Fianna Fáil measure brought in by Deputy Darragh O'Brien. The measure would apply the provisions of rent pressure zones that limit rent increases to 4% per annum to student accommodation.

As of today, almost 19,000 have signed an online petition calling on the Government to work with universities to create more affordable accommodation and to prevent private companies and landlords from exploiting legal loopholes that allow them to charge whatever they wish to students.

Shanowen Square is a privately-owned student residence near DCU. In common with all student accommodation it is rather basic. The apartments comprise four single bedrooms and a shared living, kitchen and dining area. I will outline the rise in the cost of this accommodation for the academic year, which is 34 weeks in duration. In the 2016-17 academic year the cost was €6,120 plus a deposit of €350. In the 2017-18 academic year, the cost is €7,000 plus a deposit of €350. In the 2018-19 academic year, the cost will be €8,695 plus a deposit of €400. The Minister of State will understand the widespread outrage of parents and students when she examines these figures. This represents an increase of more than 40% since last yearin Shanowen Square. This cannot be allowed to continue; there is no question about that. Some people have contacted me to say that the accommodation does not even have working Wi-Fi. Although Wi-Fi is very important for students, they do not even have that basic facility. Similar accommodation in a nearby privately-owned student complex, Gateway Student Village on Ballymun Road, has increased to €9,980 for 2018-19. I understand that deposits are being retained as part of the fee and are not being returned. They should be returned if there is to be any law in the country. By comparison, on-campus accommodation is priced between €5,729 and €6,396 for the same academic year. The numbers of students applying for this accommodation far exceeds the numbers of places available. Thus, the accommodation is distributed in a supposedly random lottery system. Students who are not successful in securing a place must resort to the privately owned complex in Shanowen Square. They are forced into this situation.

Cúirt na Coiribe in Galway recently revealed plans to raise rent by 18% for the next academic year. It is most concerning and unfair that these rent increases are being announced around examination time as it gives people no time to gather or get a deposit in. In a statement Cúirt na Coiribe defended its decision on the basis that the rent hike was in line with wider student accommodation markets in Galway.

Student apartments in Cork coming on-stream for next term have prices greater than €900 per month for one-bedroom units. That is more expensive than a mortgage repayment on many family homes.

We have no wish to see students having to fork out outrageous rent costs for accommodation. This is affecting rural families more than most. When children reach third level the costs to families soar. Students have no choice but to live away from home and so incur accommodation and travel costs. All this coincides with the loss of child benefit.

People are infuriated each year to hear various politicians expressing outrage at accommodation costs for students. This usually happens around the month of August but invariably nothing happens. We want to see changes. What we need is cross-party political pressure and action to put an end to the extortionate rip-off policies of these private companies. The escalating cost of student accommodation is simply unacceptable. The 2015 report of the Higher Education Authority shows that the number of students in full-time third level education is set to rise from 168,000 in 2014 to 193,000 by 2024. That is a rise of 25,000 students. Thousands of units of student accommodation are either being built or are in the planning stages in cities throughout the country, with the majority in Dublin where the demand is greatest. The new units being built are generally high-end en suite rooms with shared spaces. Generally they cost between €220 and €270 per week. Purpose-built student accommodation is not covered under the Residential Tenancies Act and is not under the jurisdiction of the Residential Tenancies Board. This means students staying in such accommodation are not classed as tenants and do not have many of the same protections afforded to tenants. Our Bill addresses this anomaly. Dublin city is covered by rent control legislation introduced in late 2016. The legislation prevents landlords from raising the rents by more than 4%. However, this does not apply to licensees. That is what allows Shanowen Square to raise the rent in the buildings by over 25%.

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