Dáil debates

Tuesday, 29 May 2018

Residential Tenancies (Student Rents, Rights and Protection) Bill 2018: Second Stage [Private Members]

 

9:15 pm

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail) | Oireachtas source

Since it is some days before the examinations start, it is appropriate to wish all students who are sitting examinations in the coming weeks the best of luck. The discussion relates to student accommodation in third level. Many of the students sitting examinations will be entering that phase of their lives.

The pressure on families to support their children in third level education is extraordinary. Middle-income families who do not qualify for Student Universal Support Ireland grants are being bled dry by out-of-control student rents. This must be brought under control. The cost of student accommodation out-of-term is up to 40% cheaper. While demand is obviously greater during term time, such a great difference in rent is unacceptable. I have spoken to many families in my constituency of Tipperary whose children are studying throughout the country. The story is always the same.

Fianna Fáil is supporting the Sinn Féin Bill to expand the provisions of rent pressure zones to cover purpose-built student accommodation. The Bill reflects a similar measure brought forward by Deputy Darragh O'Brien recently. Student accommodation is currently not covered by the 2016 Act as it constitutes a licence to reside similar to a hotel rather than a tenancy. This Bill extends the rent pressure zones rent cap of 4% to student accommodation by extending the definition to encompass student accommodation. The Bill comes in light of vast increases of up to 27% per annum in student accommodation. Fianna Fáil has also brought forward legislation to strengthen regulation of rental market by empowering the relevant authority to undertake investigations, expand rent limits and increase supply.

Our Bill applies the rent pressure zone system solely to purpose-built student accommodation during academic term times and will not impact on other rights or schemes, including the rent-a-room scheme. Data from national student accommodation policy documents indicates that this would impact on approximately 33,000 current students in purpose-built student accommodation. It will eventually cover the anticipated 21,000 additional student places due by 2024. Fianna Fáil has also put forward a suite of measures to strengthen protections in the rental sector.

Ireland's student numbers are increasing significantly. The number of students in full-time third-level education is set to increase from 168,000 in 2014 to 193,000 by 2024, or 25,000. Taking this into account, the HEA concluded in 2014 that there was a deficit of approximately 25,000 student beds and that number was set to increase significantly. Following this report, the number of private international companies providing purpose-built student accommodation has jumped significantly. Currently, there are 33,000 student places with further increase of 20,000 additional units due to come on stream by 2024. Thousands of units of student accommodation have been built or are in the planning stages in cities around the country.

We must address the quality of accommodation by overhauling the RTB to provide it with new investigative powers and extra resources, stronger certification and inspection of rental properties and stronger rights to remove rogue tenants. We must increase supply by financing new build-to-rent units, implementing an empty-property refurbishment grant and offering assistance to involuntary landlords in negative equity. The new units which have been built are generally high end with rooms in shared spaces costing between €220 and €270 per week. Purpose-built student accommodation is not covered by the Residential Tenancies Act and is not under the jurisdiction of the RTB. It is covered by license-to-reside agreements similar to those for hotels or the rent-a-room sector. Students staying in this type of accommodation are not classed as tenants and lack the protections afforded to others. Our Bill addresses this anomaly.

Comments

No comments

Log in or join to post a public comment.