Mairead Farrell (Galway West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

81. To ask the Minister for Education and Skills if he will outline his plans for student accommodation, in terms of both digs and vacancy; and if he will make a statement on the matter. [25327/23]

Mairead Farrell (Galway West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

We are all aware of the serious housing crisis in the State at the moment. We know also how this impacts on students and their ability to attend third level institutions across the State. I recall years ago in Galway when students simply had to line up outside the offices of theGalway Advertiseron a Thursday waiting for the notices, but that is not the case anymore. Many students are finding it difficult to find accommodation. Will the Minister outline his plans in this regard?

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context | 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.

Mairead Farrell (Galway West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Gabhaim buíochas leis an Aire. We are aware that the whole accommodation situation at the moment is a complete and utter disaster. Unfortunately, that is also the case for students. I commend the UCD students' union on the survey it did over a two-year period, which was published a fortnight ago. It contained very interesting findings but they were also very difficult findings. It shows that for a lot of people who may have had access to third level education who previously had been locked out, are now being locked out as a result of the housing crisis. The survey showed that 71% of students had difficulties or extreme difficulties in meeting their monthly housing-related costs. The same percentage had difficulties in actually finding the accommodation. People were paying €750 to €900 per month. This is completely and utterly unsustainable.

I hear what the Minister is saying about the shovel-ready projects that are being progressed. How many of them with planning permission are still there that need to be progressed?

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

That is a very fair question. I was looking back at figures while the Deputy was asking the question. We have approved €59 million worth of taxpayer investment in student accommodation projects, just since last December - certainly we did some before Christmas and some after Christmas. This has allowed projects to move forward in Dublin City University, Maynooth University, University of Galway and University of Limerick. The next ones we are now looking at are another three potential projects: one each in UCD, Trinity College, and UCC. I hope to bring further proposals to Cabinet very shortly over the summer months. As the Deputy will be aware, UCD has planning permission to develop up to 1,254 beds. Trinity College has planning permission for 358 beds at Dartry. UCC has planning permission for 243 beds. These are the next three projects I am working on intensively.

It is not a funding issue. We have provided €59 million. We also must make sure, working with the Office of the Attorney General, that we comply with state aid rules.

Mairead Farrell (Galway West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

That is actually a very interesting piece of information and I thank the Minister. On digs accommodation, it is very welcome that the scheme has been broadened, especially as I consider the likes of University of Galway and the Atlantic Technological University, ATU. The changing of the eligibility requirements to avail of using the rent-a-room scheme is very welcome, especially in and around the ATU, which in the area I live.

The issue is digs accommodation. Of course, they are not the ideal. When people go to college, generally they want to have the experience of living with their friends, and to do all of those things we were able to do at that age when housing was a different situation.

The other issue is the regulation of digs accommodation. We have all heard the horror stories about students who have not been able to cook, those who have not been able to lock their rooms, those who have been told at a moment's notice of room inspections and so on. When does the Minister expect regulation of digs accommodation to come in?

Simon Harris (Wicklow, Fine Gael)
Link to this: Individually | In context | Oireachtas source

This is a sensitive issue. The Deputy is correct on one level in that we absolutely want to make sure that anybody who avails of any accommodation gets good and decent accommodation, and that students are protected and are in an environment where wellbeing and standards are respected. We also do not want to accidentally over-regulate the older person who might, for example, be living in a local authority house, has a spare room and is thinking, "Will I rent out that room or not?" Under our new scheme, that person can now do this while in a local authority property, but if the process become overly burdensome he or she may decide not to. It is a balance. I continue to engage with the Department of Housing, Local Government and Heritage, and I will talk to the student unions more about this as well.

I have just seen that the latest figures we had for the rent-a-room scheme from Revenue are from 2019. In that year 9,810 people - not all students - were availing of the rent-a-room tax scheme. This suggests to me that thousands of students every year are actually availing of the scheme. It is about a mix of more purpose-built college-owned accommodation at affordable prices, a better rent-a-room scheme that works for homeowners and works for students and looking at the private rental market supply as well.