Niall Collins (Limerick County, Fianna Fail) | Oireachtas source

I thank the Deputies for their contributions. As the Minister of State, Deputy Noonan, outlined, the Government agrees that everyone, including lodgers, should have a sense of security and protection in his or her home. Traditionally, where people share their home with a lodger, both parties benefit from the inherent goodwill that underpins digs arrangements. It is possible for digs arrangements to be formalised by way of a licence agreement between the parties, but this is a matter of choice for the parties themselves to agree upon.

The Government will not be opposing this Bill, but it is clear in its wish for digs arrangements to continue to operate as a key housing solution that benefits both parties and wider society. We share a common goal of providing quality, affordable accommodation for students where they are secure and protected. I am aware of the difficulties faced by many students in accessing affordable and suitable accommodation to facilitate access to higher education. The Government is committed to addressing this challenge. The Government has a clear record when it comes to protecting students.

Policy proposals that are implemented through law need to be clearly defensible in the courts. Any unintended consequences of pursuing a particular policy objective need to be carefully considered and scrutinised. This Private Members’ Bill is no different, which is why the Government is keen that it be carefully examined.

My Department is conscious of the need for students and homeowners participating in the rent-a-room scheme to be safeguarded. In 2023, we published a voluntary regulatory framework and sample licence agreement to assist those who wished to avail of the scheme. This guidance aims to highlight to homeowners and students the key issues to consider when entering into the scheme. These documents are available across all universities and online. I would encourage all students and homeowners to utilise this support under the scheme.

This morning, the Government approved the publication of the residential tenancies (amendment) (No. 2) Bill 2024 for priority passage through the Houses of the Oireachtas next week. The Bill aims to enhance protections for students in the student-specific accommodation rental market. The Bill, if enacted, will ensure that the duration of student-specific accommodation contracts reflects the academic year, which is usually a maximum of 41 weeks and traditionally from September to May annually unless a student requests to rent the accommodation for a longer duration. The Bill also provides that a student tenant may agree to pay an advance rent payment of greater than one month’s rent only where such a payment is part of a combined payment that is payable to the same relevant provider in respect of rent for accommodation and tuition fees. Relevant providers include public and private educational providers.

My Government colleagues and I have noted with alarm - I am sure the Deputies have as well - that a number of private student-specific accommodation providers have moved exclusively towards a 51-week occupancy model. While there may be a market for 51-week leases among some members of the student population, it is not desirable or affordable for the vast majority of third level students and their families. A move of this nature will only increase barriers to higher education for the majority of students. In addition, a number of private providers are operating booking portals that seek payments of amounts that exceed those that can be legally sought under the RTA to secure a tenancy or licence agreement as an alternative to, but not exclusive to, the option of paying the amount that can legally be required. Section 19B of the Residential Tenancies Act restricts the total amount that a tenant is required to pay upfront to a landlord by way of a deposit or an advance rent payment to secure a tenancy to no more than the equivalent of two months’ rent, in that any deposit cannot exceed one month’s rent and any advance rent payment cannot exceed one month’s rent. A restriction of the equivalent of one month’s rent is also placed on the amount that a tenant is obliged to pay as a regular advance rent payment to a landlord during a tenancy. The pressure on students and their families to secure SSA is resulting in upfront payments being made to private providers that far exceed those that can be legally required. This practice impedes access to education and circumnavigates the Act's requirements and counters their spirit.

The Cabinet decision this morning to publish and quickly enact the residential tenancies (amendment) (No. 2) Bill will urgently deal with the matter of 51-week leases. We look forward to the help of the Opposition in getting that done with the Minister, Deputy O'Brien, before the Houses rise for the summer. I thank the Minister, his officials and our own departmental officials for the significant work done, with legal drafters and advisers in the Office of the Attorney General and Oireachtas staff, in expediting this process to safeguard students from having to agree to extended 51-week leases and making excessive payments to secure tenancies. These measures will provide assurances to students and their families on costs when planning for higher education.

As the House will appreciate, the Government is active in increasing the supply of student-specific accommodation. The Government recently confirmed the investment of €100 million to deliver more than 1,000 student accommodation beds. The State funding will allow 493 new beds to be developed in UCD and the progression of 405 new beds in DCU through tender stage and 116 new beds in Maynooth University to construction. Any State funding will be in return for 30% of the newly built beds being made available for use by students in national access plan priority groupings or categories of students eligible for support via SUSI at a discounted rate of rent. The Higher Education Authority is currently assessing tenders for the provision of an expert multidisciplinary team to develop new design standards for State-supported purpose-built student accommodation. This project will be key to establishing best practice and value for money for the State, ensuring affordability of additional supply for students and delivering modern purpose-built student accommodation facilities that are functional, sustainable, maintainable, flexible and safe, with high-quality architectural design.

A cross-departmental oversight group has been established to oversee, manage and advise on the study. The group is chaired by my Department, with sectoral, planning and technical support from our departmental officials and officials from the Department of Housing, Local Government and Heritage and the Higher Education Authority. The group will engage, as required, with higher education sectoral experts, local authorities, expert student representatives and industry-professional bodies. The project will commence after the awarding of the contract to the successful tenderer in mid-July, with the report to be completed by end of 2024.

Short-term activation measures have been successful in reactivating projects with planning permission already in place that otherwise could not progress without State funding. However, there is much more to do. While the short-term activation measures are progressing, longer term plans have been in development. The agreed long-term approach will include a focus on balanced regional responses for additional student accommodation, including with the technological universities, utilising a standardised design approach for new student accommodation. This policy will also focus on refurbishment and vacancy to deliver additional supply.

Flexible and affordable supply through digs accommodation will continue to play a key role in supporting new and additional supply for students. On 27 May, in a memorandum for information, the Minister for further and higher education asked the Government to note his intention to conduct a second annual rent-a-room campaign targeted at homeowners and students in higher education campus locations to increase the supply and uptake of digs accommodation. As the Minister of State, Deputy Noonan, has already outlined, local authority tenants have recently been allowed to rent a room to students and measures are being taken to allow approved housing body social tenants to similarly do so. We need to make use of all rooms that might be made available for rent. It is important that people do not feel that they will lose out on any benefits because they rent out a spare room in their houses. There will be no impact on medical cards, GP visit cards, social welfare benefits or access to the fair deal scheme. People can earn up to €14,000 tax free in rental income from spare bedrooms in their homes. The Government is keen to encourage people to rent out spare rooms.

The Government is also very keen that any regulation of such letting should not become a reason for such letting to cease. Digs is a key housing solution and reducing its availability due to inappropriate regulation of people's homes is to be avoided.

Careful examination of the policy underpinning this Private Member's Bill and of the Bill’s provisions will be crucial.

In conclusion and to reiterate, the Government is not opposing this Bill but its provisions will require careful scrutiny on Committee Stage. This is not just from a legal perspective but also to consider the potential impact on supply and the risk that the goodwill that currently underpins digs arrangements could be damaged or might not be sufficiently valued under any new regulations. Digs represents and will continue to represent a housing solution for a substantial proportion of the student accommodation in tandem with increasing supply of student accommodation through new policy measures. We must be very careful not to disrupt a system that is providing accommodation for students and thus facilitating access to higher education. This system is clearly working for the vast majority of licensees, including students, and those opening their family homes to lodgers.

Similarly, I would like to reiterate the clear signal the Minister of State, Deputy Noonan, gave to providers of digs earlier that their efforts are appreciated and that the Government does not intend to rush into regulation here. This Private Member's Bill will need careful examination. Any new regulations will not impact on existing digs arrangement and will not be in place by the commencement of the 2024-25 academic year. The Government wishes to encourage digs providers to continue with their good work and to thank them for providing homes for people over many years, in some cases.

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