Mairead Farrell (Galway West, Sinn Fein)
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The Government's policy of having an over-reliance on vulture funds to provide student accommodation instead of directly provided student accommodation by the Government has meant there is a complete reliance on overpriced accommodation for the student population. This, of course, means many students feel completely locked out of third-level education because they simply cannot afford to live in the areas where they might want to study. Students have been very clear for a long number of years that what they need is affordable student accommodation - basic student accommodation that meets their needs. They do not need the accommodation that is being provided by the vulture funds, which the Government has welcomed to provide the student accommodation, which have things like cinemas, Instagram-able views as they call them on their other websites, bowling alleys, etc. They end up paying thousands of euro to live in a room the size of a car parking space.

We now have an over-reliance on vulture funds to provide student accommodation. In Dublin, more student accommodation is actually provided by vulture funds than by Trinity, UCD and DCU combined. It is going in exactly that direction in the likes of my hometown in Galway. The over-reliance on vulture funds to provide student accommodation in Galway means many students are relying on this absurdly expensive accommodation. Hubble, which provides student accommodation in Galway, is increasing its rents by almost 30%. The reality for many students is that that is completely and utterly unaffordable.

For the 2024-25 college year, it offers what it describes as a deluxe room for €10,070 and a deluxe room en suite for €11,045. That is €283 a week for student accommodation in Galway because of this over-reliance on vulture funds. That is completely and utterly outrageous. The students themselves have said it is completely and utterly outrageous. They have come together under the leadership of Galway students' union and put together a petition which more than 1,000 students have now signed to say it is not good enough to have that kind of a rent increase.

Of course, the Minister of State would be acutely aware that Galway city is in a rent pressure zone. To see that level of increase is simply unimaginable. It looks like it will affect more than 500 students, students who have been studying in Galway up to this point and who want to continue studying in Galway if they have not finished their degree. Students in Galway are already paying some of the highest rents in Europe and are now being asked to increase their payments on rent even further. It is simply not good enough. We need direct action from this Government immediately.

Can the Minister of State tell us whether the Minister, Deputy Harris, has met with Hubble Student Living on this price increase? What has the Minister done to stop this? Why did the Minister not invest in student accommodation in the budget? We saw no money going into student accommodation in this year's budget. What will the Minister do to make it clear to these vulture funds that they cannot treat students like this and that they cannot increase their rents by 30%? I would like to hear from the Minister of State.

Peter Burke (Longford-Westmeath, Fine Gael)
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I thank Deputy Farrell for raising this very important matter. As the Deputy is aware, the difficulties faced by students trying to secure affordable student accommodation is an issue the Minister, Deputy Harris, is actively pursuing. The student accommodation provider referred to by Deputy Farrell in the supplementary information is privately-owned and operated and, therefore, it is not within the remit of the Minister for Further and Higher Education, Research, Innovation and Science to directly intervene. However, in 2021, as the Deputy will be aware, the Government extended rent pressure zones, RPZs to the end of 2024.

Legislation was also enacted to cap rent increases at a maximum of 2% in rent pressure zones where general inflation is higher. Rent pressure zone rules have always applied to the private sector and to private providers of student accommodation.

While there are exemptions to the rent caps, a property would be required to have undergone a "substantial change in the nature of the accommodation", as defined in the Residential Tenancies Act, to be considered exempt from RPZ rent caps.

Student-specific accommodation is within the remit of the Residential Tenancies Board, RTB. The RTB provides a confidential dispute resolution service. This service offers a choice of resolution types to parties. The RTB has powers to investigate and sanction landlords who engage in certain breaches of rental law called improper conduct, including raising the rent unlawfully in a rent pressure zone. If landlords are found to have committed improper conduct, they can be sanctioned with a written caution and-or a sanction of up to €15,000 and up to €15,000 in costs.

The Minister, Deputy Harris, would encourage any student who has a specific concern or believes their landlord is in breach of rental law to contact the RTB as soon as possible to submit their query and, indeed, complaint. This Government is committed to ensuring protections for tenants, including those in student-specific accommodation.

The reliance on the private market has been challenging. That is why the Department of further and higher education is working on a number of projects to activate on-campus accommodation. The University of Galway has submitted a proposal for a long-term student accommodation leasing project. This proposal is currently being examined by the Higher Education Authority, HEA, as part of the due diligence assessment.

A number of other potential developments in Galway may also be amenable to a leasing intervention or refurbishment intervention and work is ongoing on these assessments by the officials and the HEA. Any project would be subject to the necessary approvals and the timeline for delivery of these proposals is subject to compliance and approvals under the public spending code. The Department continues to engage with the Department of Public Expenditure, National Development Plan Delivery and Reform regarding funding for these projects under the national development plan, NDP, process. The Department and the HEA will work through the financial and governance due diligence process for these projects if State funding is approved by Government.

Mairead Farrell (Galway West, Sinn Fein)
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That is a disgrace because from the sound of that response from the Minister, Deputy Harris's Department, he is just washing his hands of all of this. The Minister of State in his reply told us that the Minister, Deputy Harris, is "actively pursuing" the issue of securing affordable accommodation. He did not put any money in the budget to build that student accommodation. The Minister of State said the Government has extended the rent pressure zones for a further period. This is a 30% increase in the cost of that student accommodation, 30% which students simply cannot afford to pay. This will lock more people out of student accommodation at a time when we already know the number of students who are dropping out of third level education is growing. One of the reasons is the accommodation crisis. We have heard from so many students who have to commute huge distances because they simply cannot afford accommodation in their chosen college.

I would say to the Minister of State that it is simply not good enough to be telling us these kinds of things. We are talking about a cost of €283 per week for a room. It is insane for a student to be paying such a cost, or to be paying a cost of €258 per week either. That answer is simply not good enough.

The Government is a tenant in this particular building also. Is the Government going to be submitting anything to the RTB on that price increase, or is it happy with an increase of 30% without questioning it?

My second question is on the vulture funds. We have heard promises from the Minister but no action on the change from 39 weeks to 51 week leases, which so many student accommodation providers are talking about. These are the vulture funds which the Government has clearly welcomed in rather than building its own student accommodation.

Peter Burke (Longford-Westmeath, Fine Gael)
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As the House will be aware, the Minister, Deputy Harris, secured Government support for his Department's long-term student accommodation policy in January. The policy sets out a number of measures to increase the supply of accommodation through all forms of tenure, recognising the differing regional needs. The aim of the policy is to increase the supply of student accommodation and to examine alternative solutions which will remove accommodation as a barrier to higher education. This will be accomplished through a number of methods, which include new-build purpose-built student accommodation, PBSAs, refurbishment and renovation of vacant and existing building stock, and the promotion of the rent-a-room scheme.

In the context of wider housing shortages, the dual benefit policy will free up private rented accommodation by increasing the supply of student specific accommodation. The policy will inform the development of the new student accommodation strategy and associated schemes which will further be developed throughout 2024 in consultation with Government colleagues and stakeholders. The Minster, Deputy Harris, encourages any student or parent who has a specific concern, believes that their landlord is in breach of rental law, or has exceeded the permitted rent pressure caps, to contact the RTB as soon as possible or to submit their query or complaint.

Mairead Farrell (Galway West, Sinn Fein)
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Will the Government be putting in a-----

Seán Canney (Galway East, Independent)
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The debate is concluded.

Mairead Farrell (Galway West, Sinn Fein)
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The Minister of State did not answer my question. This is ridiculous.

Seán Canney (Galway East, Independent)
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As no other Deputy is here to put questions, that concludes the business for this evening.