Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

As the Deputy will be aware, the rent-a-room scheme is under the remit of the Minister for Finance, my colleague Deputy McGrath. However, I acknowledge that my Department and the Department of Housing, Local Government and Heritage are the main users of the scheme. Therefore, I am very conscious of the need to safeguard our students in digs accommodations, which are typically more informal and flexible arrangements in family homes. For this reason the usual Residential Tenancy Board protections do not apply to this type of accommodation provision.

In line with Housing for All objectives to increase protections in private rental accommodation, the Department published a voluntary regulatory framework and sample licence agreement in September 2023. The guidance aims to assist both homeowners and students who wish to participate in the rent-a-room scheme and highlights to them the key issues to consider when entering into the scheme. I encourage all students and homeowners using this scheme to consider this advice and to ensure all parameters are agreed in advance of entering into any agreement.

My Department has engaged with the HEI sector and has shared the final version of both the voluntary regulatory framework and the licence agreement for publication on their websites and for sharing with students. An individual can rent a room or rooms in their home, retain their social welfare entitlements where applicable, and earn up to €14,000 in rental income before having to pay tax. The Government also approved an extension of the rent-a-room relief scheme to disregard income earned when determining medical card eligibility and when examining reckonable income for support under the SUSI grant scheme. In addition, the scheme has been extended to allow local authority tenants to participate, which is very important. This will be on an administrative basis initially, targeting the provision of additional rooms for third-level students.

While I note the Deputy's position, I would caution against cliff-edge measures which could significantly impact on the digs supply and drive people out of the market. My Government colleagues and I will continue our work to increase awareness, safeguards and availability of the scheme which is an important provider of flexible and affordable accommodation for students and the wider rental market.

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