Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank the Deputy for the question. I agree that this absolutely has to be, and is, a priority area. We need to, and we have, changed the policy on student accommodation. If the Deputy and I were having this conversation just before Christmas, or if we were talking about it last September, the factual position in Ireland was that universities had either decided, or not, to fund their own student accommodation and the private market had done that, and there had not been State intervention. I was very clear when I became Minister that this was not an acceptable position. Now, for the first time, we are using Exchequer funding to start trying to get student accommodation projects under way.

My Department is actively trying to address the availability of student accommodation, given the challenges in the wider rental market. Through Housing For All, the Government has approved the development of policy and provision of funding to increase the supply of purpose-built student accommodation. I am pleased this has resulted in the State directly supporting the recommencement of 1,071 new student accommodation units by our higher education institutions. These were the projects where planning permission existed but had stalled because they were viewed as not being viable. We have intervened to make sure it is possible to get them back moving. That is 1,071 units. I am also pleased to be able to tell the Deputy that my officials are also assessing a number of other projects with planning permission for delivery of additional supply. I specifically highlight UCD in that regard.

My Department is also supporting increased use of digs accommodation through the rent-a-room scheme. I am aware this might not work for everyone but it does work for some every year. The Government has approved the extension of the scheme income disregard for social welfare recipients or medical card holders. If a person has a spare room, the changes approved now will allow a local authority tenant to access the scheme for the first time. Perhaps an older person who is in receipt of the fuel allowance and the medical card has a spare room and would like to rent it out to a student but was worried that, in doing so, he or she would lose the medical card or lose the fuel allowance. That older person now will not lose those. A person can actually earn up to €14,000 per annum in rental income before any tax is due. The Government will launch a national media campaign to promote awareness of, and participation in, the rent-a-room scheme, targeted in particular at homeowners. The Government has also approved funding of €1 million to support the technological universities to help them begin to develop their student accommodation plans.

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