Dáil debates

Tuesday, 2 July 2024

Residential Tenancies (Amendment) Bill 2024: Second Stage [Private Members]

 

7:20 pm

Photo of Mairead FarrellMairead Farrell (Galway West, Sinn Fein)
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I move: "That the Bill be now read a Second Time."

Gabhaim buíochas leis an Aire Stáit as ucht an Bhille seo a thógáil. Ar an gcéad dul síos, I welcome those organisations who are watching in the Gallery. We have the Union of Students in Ireland, the student unions of University College Dublin, Trinity College Dublin, South East Technological University, Maynooth University, Dublin City University, University of Galway and the Institute of Art, Design and Technology. It is thanks to those student unions and the students themselves, who have been advocating for years for this type of legislation to come before the Dáil, and I thank each and every one of them for their patience, guidance and assistance in bringing forward and helping us to draft this Bill. This Bill is for them, for the people they represent and for their parents and it is also for those people who open their doors and welcome people into their homes. We want to finally provide some rights and protections to those students who live in digs accommodation. At this stage, I think that is only right.

We are aware that there is a severe housing crisis. It used to be a situation where people may have lived in digs accommodation for one year in their first year as they made that transition from their home life to student life. However, now the reality is that because of the extremely high cost of student accommodation, thanks to the Government's approach to having vulture-fund-led student accommodation, this is the only option for so many people. It is welcome that people open their doors in this regard but it is important that students who are living in this type of accommodation have some basic protections.

The Minister of State will be aware, of course, that there is a generous tax subsidy of €14,000 available for those who are renting out their rooms. We believe it is only fair that if the State is going to pay up to €20 million or €30 million a year on this tax relief, then recipients should be obliged to have some protections for their renters. Threshold has pointed out these student renters have effectively no rights. Hence, our Bill here is designed to address this. As things currently stand, students can be evicted overnight - and that happens. Then the likes of these student unions in the Gallery have to scramble and try to find accommodation for those students who are thrown out overnight and who are at risk of homelessness. Our Bill would provide a notice period of 30 days in most circumstances. Currently students have no right to privacy, such as being allowed to simply put a lock on their doors. As a woman, I would not feel comfortable living in a shared house without having the ability to lock my door. This is an issue that has been raised with me by many students because they have had that concern. I am sure the Minister of State would agree that being allowed to lock one's door is a fairly basic right.

There is currently no right to reasonable use of the household's facilities. We have all heard what happens to people in places where they might not be able to use the kitchen until after 10 o'clock at night. There are many incidents where students' deposits are not returned for spurious reasons and then they have no means of redress as they are just not entitled to the use of the RTB for dispute resolution. There have been instances as well where suddenly rents have increased dramatically because under the current lack of regulation or legislation, these types of accommodations do not fall under the rent pressure zones. That is why our Bill would require that the rent be set out as part of an official licence agreement and would bring properties within the scope of the rent pressure zones.

It is important to point out as well that this Bill provides protections to students which currently just do not exist but it will also provide protections to the householders themselves. It means that there are obligations on the part of the student renters to pay their rent in full or if the student or the person engages in antisocial behaviour or damages the property, then the homeowner can go to the RTB to seek redress.

This is something for which students have long been campaigning. This is about having basic rights for students who are living in digs accommodation. Digs are, for many people, the only solution for rental accommodation at this time. The tenants need to have protections. They need to be able to lock their doors at nighttime so they do not have to worry and sleep with one eye open because they are worried about might happen. They should not have a situation whereby they do not know if they are going to be thrown out from one day to the next. They should have some kind of a notice period. This Bill will provide that. They should have reasonable access to facilities in order that they can do their cooking, put on a wash or whatever it may be. I am really happy that this Bill is coming before the Dáil and I am really pleased the Minister of State will not be opposing it but I would like to hear what he has to say.

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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We had the RTB before the housing committee today and it was a really informative meeting. There is no doubt there are changes that need to be made to improve services provided by the RTB. However, the current system for students living in digs does not even allow them to bring a case to the RTB. This Bill would allow both homeowners and tenants to access the RTB and it is a vital protection for everyone. What it also means is that we will hopefully no longer hear the horrific circumstances of students being evicted without notice, or students who are not allowed to use the kitchen or even the home they are in. It will mean that students will be entitled to the basics such as a rent book, protection against rent increases and a right to privacy. Right now, we have young female students going into accommodation with no entitlement to look their doors. There are young men in the same position as well. How can this be right that you would go to sleep at night not knowing if someone could come into your room? This is completely wrong. Right now, in Cork, we have a crisis in student accommodation. It is unbelievable the pressure that students and their families are under because there is a huge shortage of beds, especially affordable ones. Therefore, digs have a really positive alternative role to play. In many circumstances, they work and it can be a really positive experience both for the homeowner and the students. However, when it does not work, it can be a nightmare for the student in particular. That is why this Bill is so vital. For too long, students' rights have been ignored. Now it is time we give them the rights and the respect they deserve.

7:30 pm

Photo of Johnny GuirkeJohnny Guirke (Meath West, Sinn Fein)
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The crisis of student accommodation has become a significant issue affecting students and their families across our country, including the people of my constituency in Meath West. Private companies are exploiting students and their parents. These companies use deceptive tactics such as claiming that properties need renovations to remove students from their accommodation. Once the students are displaced, the companies hike the rent on the new accommodation by extortionate amounts. This is a clear exploitation of students and their families who are already financially strained. I spoke to students in my constituency who last year paid €8,000 for their accommodation. This year they got quotes of €10,000, which is an increase of 25% in a rent pressure zone where rents are only supposed to go up by 2%. This pattern of exploitation is not an isolated incident; it is a widespread issue that is causing immense hardship for students and their families.

The financial strain of high rent coupled with the emotional toll of unstable living conditions severely impact students' ability to focus on their academic pursuits. Access to affordable and secure accommodation is crucial for their success.

The current system places an undue burden on students, particularly those not eligible for grants, forcing them to pay extortionate rents and endure unstable living conditions. It is essential that measures are put in place to regulate the practices of private housing companies and provide support for students seeking accommodation, as has been previously pointed out. The current scheme of the rental sector especially for individuals renting rooms in homes where the owner also resides comes with a number of issues. In some cases, students have been denied rights concerning the reasonable use of shared facilities like the kitchen and the bathroom, and the right to lock their bedroom door. Student renters have been without access to a notice period and have been unable to seek recourse to the RTB in cases where their deposits have been unfairly withheld.

Digs accommodation offers a workable solution to the shortage of student housing within the sector. By addressing the deficiencies in protections and rights for students in these living arrangements, the Government can help alleviate the student accommodation crisis. Students need the rights and protections they deserve and this Bill will do that.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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I wish to acknowledge the important role that digs accommodation plays in providing accommodation for students. I am very proud that Limerick is a wonderful university city with the University of Limerick, the Technological University of the Shannon, the Mary Immaculate campus and the art college, among others, all based in Limerick city. Students are a vibrant and welcome addition to the Limerick population and provide value to Limerick and its surroundings. Digs are an important source of accommodation for students. It is generally cheaper than other rental accommodation options when they exist, either on campus or off campus. In many cases we hear of wonderful bonds being formed between the host family and the student.

Aside from the financial cost of rent, for many parents of new students having their young adult beginning a college experience in digs offers a level of peace of mind. They may not be able to afford a more independent sort of rent. Without the availability of digs accommodation, many more students would struggle to find accommodation. As we know, there is a lack of affordable or available rental properties in the Limerick area. At this time of year my office normally begins fielding calls from students and their families who are desperately seeking accommodation. Along with Deputy Mairéad Farrell, we recently met UL, Mary I and TUS students regarding the accommodation crisis students in Limerick often experience.

For students, digs are more affordable than other options. The average cost of digs accommodation in Limerick is €150 per week, accompanied by an affordable deposit. Renting on campus can be quite expensive with on-campus accommodation in UL starting at €5,343 in a shared eight-bedroom unit with a €450 deposit for the academic year. Appreciating this, however, there remains an absence of regulation on this type of accommodation. Regulation is needed to protect not just the student renter but also the householder providing the accommodation. Without a level of regulation, there is no protection for renters from overnight eviction. There is no protection against potentially prohibitive house rules regarding facilities and kitchen access. There is no protection for students who may wish to lock the door of their own room.

The vast majority of providers of digs accommodation do not operate in such a manner but there are some who do and a protection must be put in place against bad practices. Those offering rent-a-room accommodation can avail of up to €14,000 in tax relief with the average savings in 2018 of €2,100. With such a subsidy, there must be an obligation to protect these student renters. Householders want to formalise arrangements, as do students. The Bill offers simple protection such as access to a rent book, minimum notice period, a right for students to lock the bedroom door, recourse for both parties to the RTB and the right of householders to have recourse for property damage, late rent payments and antisocial behaviour at the property. Students and digs providers need affordability and security. Other rental options are not affordable or in sufficient stock in Limerick.

Photo of Martin KennyMartin Kenny (Sligo-Leitrim, Sinn Fein)
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I commend Deputies Mairéad Farrell and Eoin Ó Broin on introducing this legislation. The Rental Tenancies (Amendment) Bill 2024 seeks to establish some form of contract between the householder and the tenant renting the room in the house. I have first-hand experience of this. Last year I had three in college together and this coming year we will have two going to college. I am well aware of the high costs involved and also the huge struggle in the first place to find accommodation. That is the first consideration for everyone who has a child going to college in any part of the country no matter where they go. Whether they come to capital city in Dublin here, Galway, Limerick or wherever, they have the same problem in trying to find accommodation.

Many students go to college with a friend group and they want to rent a house somewhere together with that friend group. The problem we have is that the standard rental sector for everybody is putting enormous pressure on that. Houses that used to be available for students are no longer available and other families are now renting them on a longer-term basis with landlords getting higher rents for them. Such properties have moved out of the situation and the only option for many students is to go into digs. Often that can work out very well, as has been said, and in most cases, it works very well. Most of the landladies look after them very well and in many cases become a kind of second mother to some of them. That is absolutely perfect and fine but there are instances where things do not work out well. There are instances where some students might not keep to the standard rules that they have at home. They may let their hair down when they go to college, leading to difficulties there.

We need to have some form of agreement in place to make sure that everyone knows what is expected of them, that they are supposed to pay the rent on time, that they are not supposed to act the blackguard too much - except maybe during rag week when they might get away with it. For the rest of the time at least, they need to have some sense of the responsibility they have as tenants.

The person renting out the room also has responsibilities to provide the proper kind of accommodation. Such people, for instance, need to make sure that there is heat on in their rooms. I have heard that very often in the wintertime, there can be problems with that. There are issues with access to kitchens and cooking facilities. This is about trying to formalise something which will provide for both, which will ensure that everybody can be respectful to one another. When it is written down on paper, there is a contract in place and they have recourse to a governing body it puts everybody in the right place.

I welcome that the Government does not intend to oppose this legislation. I would hope that it would not just not oppose it but would actually embrace it to make sure that this will be put in place for everybody. We need to recognise that this is becoming a growing sector. The fact that there is such a large tax-free allowance in place for people who rent out a room of €14,000 year also puts a responsibility on the State to ensure that it gets involved in this and that there is fair pay for everyone involved.

Photo of Réada CroninRéada Cronin (Kildare North, Sinn Fein)
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Those of us who have had children in college know what a money pit third level education can be. I would advise anybody watching with small children to start saving now. When they have to go away to college and digs, that is when the rent cruelty and the risk often happen, which is what we are trying to prevent with these provisions. I commend my comrade an Teachta Mairéad Farrell on her work on this Bill along with Eoin Ó Broin.

I was listening to Martin Kenny talking about rag week. We have Christmas Day and there is always a party at Maynooth University. Maynooth is where I live and it is in my constituency. I am well aware of how parents and students are put to the pin of their collar to pay the rent when they attend Maynooth University for their course. Digs are really handy and they make it much more affordable. When rents and living costs are so high, we have a duty to look after students in the informal arrangements of digs when they are renting a room in a house with very little protection in their tenancy or any tenure. We have all heard of the horror stories of students arriving in the house to find that they also have housework to attend to. They might have au pair duties that were not mentioned at all. We have heard of kids being kicked out in the middle of the night being frantic. There is also the issue of not being able to have a lock on their door. Mairéad Farrell discussed that earlier. That is really critical when we are talking about the safety of our girls and our women.

I am very glad with what we are proposing this evening because it balances any previous imbalance in the relationship where people letting out the rooms had extremely good tax breaks but the person renting had very few protections at all. There are simple things like a rent book, entitlement to 30 days' notice, and reasonable use of the kitchen, the bathroom, laundry facilities, etc.

They are not rocket science and are critical for the safety and peace of mind of our student renters. We also propose to oblige renters to pay their rent on time, and to behave themselves and adhere to the rules of the house. It is about respect, common sense, protection and practicality. I commend Deputy Farrell and her practical work on this important issue.

7:40 pm

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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I also thank Deputies Farrell and Ó Broin for their work on this legislation. It is an important step forward to protect both students and homeowners. We do not want to discourage people from renting out a room but we feel the generous amounts in tax subsidies allowed should come with a requirement to protect those renting out their rooms. However, the overall issue of student accommodation has been neglected by this Government. We have had promise after promise, but we see the impact in counties like my own, County Mayo, with students there and all over Ireland trying to access colleges. Affordable student accommodation has become the biggest barrier in accessing third-level education. The crisis of student accommodation is just another aspect of the housing crisis, and a decade of underfunding in higher education has left us with a chronic lack of student accommodation. Right now, there are shovel-ready projects that could deliver more than 3,000 student beds. They have been shelved due to the lack of Government support. The announcement previously made to deliver student beds has not come to fruition in Dublin or Cork, and that is despite DCU alone having planning permission for 990 additional beds since 2019. This Government, specifically the current Taoiseach in his former role in further and higher education, categorically failed student accommodation and failed students across this country in what he promised them. Thousands of student beds could be unlocked if the Government was serious about addressing the annual crisis in student accommodation. That is why, in our alternative budget, we allocated €100 million in capital to unlock all of those projects. This €100 million would be good for students and parents and would take the pressure off the private rental market. It should be a no-brainer, but instead the Government has sat on its hands. We need to ensure that all student accommodation projects at advanced stages of planning are supported and that construction begins as soon as possible. Fine Gael has had two student accommodation strategies and both of those have failed. They have failed students, rural people and families. Every August and September we have the same student crisis in accommodation, year after year. We need the same ambition Sinn Féin set out for student accommodation last year to ensure people can access third-level education on an equal basis no matter where they live across this country.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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I thank Deputies Farrell and Ó Broin for proposing this Bill and giving us the opportunity to discuss this important issue. The main intention of the Bill is to provide greater security of tenure to lodgers, including students. The Government agrees that everybody should have a sense of security and protection in their home. I state at the outset that the Government will not be opposing this Bill on Second Stage. While there are a number of technical flaws in the Bill, and detailed legal advices would be required, I believe the Bill would benefit from further discussion and scrutiny in committee.

The proposed section 10 of the Bill, for example, would remove existing protections for tenants where the landlord is in default of their obligations under the Residential Tenancies Acts. I am sure that is not the intention. If passed, section 10 would provide for tenancy terminations where a licensor is in default of their obligation under the Residential Tenancies Acts. However, it would also delete those same protections for tenants. I also put on record that the Government values digs accommodation as an integral housing solution for students and others. Income from digs is very important to those who open up their homes to share with lodgers. The social interaction that both parties enjoy from digs arrangements is also valuable and beneficial to society. For this reason, I clearly reassure anyone who is providing digs or planning on renting to a lodger, including students, in the coming months not to be deterred from doing so for fear of this Bill and any impending regulation of their homes. The proposed changes in this Bill will not affect any existing digs arrangement and will not be in operation when the new academic year starts in September. It is really important to state this. We do not want to lose any digs from the housing system. In fact, we wish to grow the number of digs available.

The Government has introduced a number of measures to incentivise people to share or let their principal private residence, as referenced by a number of Deputies. The Government aims to make use of under-occupied homes via the tax relief for letting to students and others under the rent-a-room scheme - up to €14,000 tax free rental income - and through the disregard of such income for the purposes of various social welfare supports, medical cards, GP visit cards or the fair deal scheme. Such income is also disregarded for social housing supports where a local authority tenant lets a room to a student. The plan is to extend this disregard to lettings by social tenants in approved housing body dwellings. The Government is concerned that any attempt to regulate digs could have a negative impact on the supply of this traditional and important source of accommodation for students and others. The impact on supply will need to be carefully considered in tandem with the legalities of the Bill.

The Residential Tenancies Acts 2004 to 2022 regulate the landlord-tenant relationship in the private rented sector and set out the rights and obligations of landlords and tenants. The Residential Tenancies Acts apply to every dwelling that is the subject of a tenancy, subject to a limited number of exceptions. Section 3(2) of the Residential Tenancies Act sets out the dwellings it does not cover, and include for example, a dwelling within which the landlord also resides. The Residential Tenancies Board was established as an independent statutory body under the Residential Tenancies Acts to operate a national tenancy registration system and to resolve disputes between landlords and tenants. Where a dwelling is occupied by a person under an arrangement or agreement which is not a tenancy covered by the Residential Tenancies Acts - for example, where a bona fide licensing arrangement exists - the RTB does not have any jurisdiction or function. It is a private contractual matter between the parties as to the type of agreement or arrangement to be put in place. If a dispute arises as to whether a purported licensee is in fact a tenancy, the RTB can determine on the matter and if it is a tenancy, the Residential Tenancies Acts apply. Students residing in digs or family homes traditionally benefit from the goodwill that exists to ensure that both students and the person who opens their home to share are happy with the arrangement. It is possible for the arrangements to be formalised by way of a licence between the parties but this is a matter of choice for the parties themselves to agree on. The Government wishes for digs to continue to be available for the benefit of both parties to such arrangements. The Residential Tenancies Acts do, however, apply in respect of tenancies and licences entered into between students and private landlords and licensors in student-specific accommodation, SSA, where the rented property is not occupied by the owner. SSA tenancy or licence disputes arising can be resolved and determined by the RTB.

In the context of changes to the Residential Tenancies Acts, it is important for any rental reform to be justifiable and necessary as a matter of priority to avoid the risk of weakening the stability and confidence in the rental sector. The Government relies on the private rental sector to provide much-needed housing generally, as well as housing through which social housing needs can be met. Any actions that directly or inadvertently undermine the economic viability of rental accommodation provision could negatively impact on both existing and future supply of rented accommodation and the wider economy, and damage the future capacity and attractiveness, for both landlords and tenants.

We must not underestimate the importance of maintaining the existing supply of student accommodation in all its forms, as well as growing new supply in the sector. Across Government, we all recognise the need for rental accommodation for students including student-specific accommodation developments. The State is accordingly now directly investing to ensure the viability of more than 1,000 new student accommodation beds across a number of universities through Department of Further and Higher Education, Innovation, Research, and Science short-term activation measures. Building on this success and to further the objectives set out in Housing for All, the Government approved the long-term student accommodation policy in January. The long-term vision, which is a key deliverable of the Government’s Housing for All plan, will ensure that availability of accommodation does not act as a barrier to accessing higher education. This dual-benefit policy will make fit-for-purpose accommodation available for students and therefore increase housing availability for private individuals and families. In addition to increasing supply of student accommodation through State support, the policy aims to reduce the cost of delivery through the development of standardised design guidance, promoting efficient use of existing stock and vacancy, while also supporting balanced regional development and an examination of transport links and viable commuting options. Cognisant of the Government’s shared commitments under Housing for All, a key objective of this policy is to alleviate pressure on the general private rental sector. The Minister, Deputy Darragh O’Brien, and Department officials continue to work closely with the Minister, Deputy O’Donovan, and his officials on the progression of standardised design templates for student accommodation.

The long-term student accommodation policy will continue to have a focus on the provision of digs accommodation, which traditionally has been a suitable source of supply for some students.

Digs-style accommodation is an integral part of the supply for the sector. The Department of Further and Higher Education, Research, Innovation and Science ran a four-week media campaign in July and August 2023 to make homeowners aware they could earn up to €14,000 a year tax free by renting out their spare room or rooms to students. The campaign was run on print, radio and digital platforms and targeted both homeowners and students. It resulted in a near doubling of the number of offers of accommodation when compared with the same period in 2022. It will be important not to lose ground here.

Digs are a vital source of flexible and affordable accommodation for students in key campus locations. The student accommodation survey undertaken by the HEA in September 2023 received 22,801 student responses, or 10% of the student population, and identified that 19% of students who resided away from home for the purposes of higher education resided in digs. The campaign will run again this year on radio, social media and national print platforms to increase awareness of the rent-a-room scheme for the 2024-25 academic year. This campaign will be supplemented by the voluntary framework and sample licence agreement developed by the Department of the Minister, Deputy O’Donovan, in 2023 to provide safeguards and guidance for students and homeowners in advance of entering an agreement.

This proposal is not one we should rush into. Collectively, we need to carefully examine the Bill and the underlying policy considerations. Potential unintended consequences could include a collapse in the supply of digs or a rise in the number of accommodation arrangements that seek to circumnavigate the proposed regulation. The programme for Government recognises the important role the private rented sector plays and will continue to play. The Government will address challenges in this sector including supply, standards, security and affordability for renters. We are making significant changes in recognition of the fact tenants continue to face persistent pressures in the rental and housing markets. Our approach to change must continue to be carefully balanced. We must recognise we need a steady supply of rental accommodation, with that sector on a sound legal footing within the overall housing system.

I thank Deputies Farrell and Ó Broin for bringing forward the Bill and allowing us to have a debate on its merits.

7:50 pm

Photo of Ruairi Ó MurchúRuairi Ó Murchú (Louth, Sinn Fein)
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I welcome to the Gallery the representatives of the Union of Students in Ireland, USI, and the students' unions of UCD, Trinity College, SETU, Maynooth University, DCU, University of Galway and IADT, as well as representatives of Ógra Shinn Féin. I hope I have not forgotten anybody. These people deal with the accommodation crisis for students day to day, and I imagine they could do with a bit more urgency because they are living with out-of-control rents, as the rest of society is. Some of this has been made a hell of a lot worse because we are dealing with an utterly dysfunctional rental sector. I come to the House virtually every week and read out examples of the rents advertised on daft.ie. As we all know, they are through the roof, and I do not know how anybody is able to afford them at all. Many of these rental properties are now not suitable for students, and that is before we talk about the lack of affordability in affordable housing schemes for regular families. All of it just compounds the problem.

I recall once upon a time, which, unfortunately, was a hell of a long time ago, when I was in digs. I think I was charged £60 and I got a breakfast, an evening meal and even a roll on Fridays when I would leave for the weekend, but we are now well removed from that. It was a fabulous service I got from that family, and I accept that many families do a considerable degree of work, which is absolutely necessary, and provide accommodation. We need to make sure there are protections for these people as well. We all welcome the tax relief of up to €14,000 they can avail of, as well as the moves that have been made to the medical card system and other such necessary moves, but we also need to make sure students have protections they do not currently have. We have heard about cases of students having being evicted overnight or having been moved into a room and then told they were going to have to take on child-minding activities. Some of them are not allowed to lock their own room and we have heard of people who have suddenly ended up in sharing situations where they did not necessarily know that was going to happen. We need to put in the protections and make sure it happens quickly.

In my town, Dundalk, there are DkIT and Ó Fiach College, and there is DIFI in Drogheda. A huge number of people need to come to Dundalk and there are significant issues in that regard. I welcome the joint activities between Maynooth University and DkIT and the letter of intent that has been signed. As usual, however, I have gone over time, so I will now desist.

Photo of Paul DonnellyPaul Donnelly (Dublin West, Sinn Fein)
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Most people understand that this type of renting is not the same as renting a full housing unit. Many of those who rent out their rooms are decent, kind and honest people who look after students really well, and the rules will not apply to them. This is not always the case, however, and we do not legislate on that basis. We legislate to protect people from unscrupulous landlords and we know there are more than a few of them.

I will highlight a few examples I got from students. Last year, one student, who was living in digs in Blanchardstown, was told to sleep on the couch and give up the room they had been renting when the landlord's son unexpectedly came home from college midweek. In another case, a landlord did not want the student to be in the house when the family were in the kitchen, and they could not eat there or cook. The room of another student, who was renting in well-known private rented accommodation, was full of mould and they had to share it with eight people. There was faulty electricity wiring in the room, with sockets hanging from the wall. It was so bad that the accommodation had to be shut, in one of those rare occasions. As most students will agree, that is just the tip of the iceberg.

The Bill brought forward by Sinn Féin will provide reasonable protections for tenants and students. It also includes protections for landlords, who will be protected in their ability to collect rent. As noted, older people, in particular, may feel intimidated. As for why we should do this, we are providing significant tax relief of up to €14,000, which is very generous, so we should ensure student renters, who constitute the majority of those in this part of the rental sector, have at least some protections in return. We need to ensure greater affordability, security and protection for student renters and end what is known as the wild west of the rental sector, which seems to have no rules.

I ask the Minister of State to support the Bill and to join Sinn Féin in standing up for students, because they need our support in this sector.

Photo of Martin BrowneMartin Browne (Tipperary, Sinn Fein)
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I too welcome the students and Ógra Shinn Féin to the Gallery and thank Deputies Farrell and Ó Broin for bringing the Bill before the House. The rent-a-room scheme, or digs, is increasingly becoming a necessity for people, especially students, when there is a lack of available or affordable accommodation. While incentives have been put in place to make the proposition more attractive for property owners, those benefits are not accompanied by obligations towards their tenants. This means tenants in digs, essentially students, are without the important protections they need.

When students are offered a place for further education, they can often find themselves faced with seeking accommodation in some of the most expensive areas in the country. That is why the rent-a-room scheme might be the viable option for them. Unlike for other renters, however, rent pressure zones do not apply to them. This is a shortcoming that contradicts the whole spirit of this scheme, namely, affordability. Additionally, the requirement for a notice period does not apply to them, nor does the issue of privacy in the context of the right to lock the door of the room in which they are staying, or access to the RTB for dispute resolution. These are just some of the issues renters of rooms can face. In worst-case scenarios, the lack of controls and regulations can affect the safety of renters, while it cannot guarantee the same protection of rent controls. Granted, not everyone has a bad experience of this - indeed, many renters have positive ones - but when the homeowner has the incentive to avail of a tax relief of up to €14,000 and to have that income disregarded from their medical card assessment, they must be asked to shoulder some obligations towards their tenants.

The Bill seeks to address some of these shortcomings. It will also require the RTB to draw up a standard template statement setting out the rate of rent, the deposit provided and the right to use certain facilities. This will benefit both sides, including the homeowner, who will also have recourse to access dispute resolution with the RTB. We know that homeowners will find a benefit in this, as studies have indicated. As the matter standard, students, who primarily avail of this type of rental option, are not guaranteed financial protections, the right to a notice period or to privacy, or even basic expectations. The Bill seeks to fill this vacuum in the interests of students and in this overall segment of the rental sector. If we would not tolerate it for ourselves, why would we expect students to do so?

Photo of Johnny MythenJohnny Mythen (Wexford, Sinn Fein)
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I thank my party colleagues Deputies Farrell and Ó Broin for introducing the Bill. It is a short but sensible and practical Bill that protects both students who are renting a room in a home and the proprietor of that home.

Under the current setup, students and workers staying in digs have little or no protection under the legislation. For instance, students have no rights to lock their doors or use kitchen facilities. They can be evicted overnight. Their rent can be increased at any time and without notice and they have no entitlement to a rent book. Unfortunately, due to the neglect in providing proper affordable accommodation over many years, this is the situation we have in 2024. Students are being fleeced and face extortion when it comes to affordable rents when it comes to the so-called free housing market, which leaves them with the only viable path of renting a room in someone's home, very often sharing a room with four people or more, reminiscent of the infamous tenements.

In my own county of Wexford, due to the unaffordable rents in Dublin students face a six-hour round trip commute to the city. It was described in the local newspaper and on local radio as one of the longest commutes in the country. This is why we need more affordable student accommodation in our capital and other cities. We recognise the digs rental sector is vital and very often the only affordable means for thousands of our students. Both student renters and homeowners will benefit from the Bill. It would provide real reform and benefits to all concerned as it would legislate for a formal statutory licence agreement and ensure greater affordability and security for thousands of students. It would also give security and peace of mind to many elderly people who let out a room in their homes in the form of access to mechanisms through the RTB, for example, when rents are not paid on time, antisocial behaviour takes place or damage to their property occurs. Student renters need to have their rights protected by legislation. The Bill will provide a more robust legal standing for both parties and I welcome the fact the Minister of State is not opposing it.

8:00 pm

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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I support the Bill. It is very good and sensible legislation and I acknowledge the work of Deputies Farrell and Ó Broin, and the Labour Party will certainly support it.

I read the Minister of State's speech with interest and was taken by the fact he felt he had to reassure the market regarding the Bill. This is how I interpret his intervention when he stated:

The Government is concerned that any attempt to regulate ‘digs’ could well have a negative impact on the supply of this traditional and important source of accommodation for students and others. The impact on supply will need to be very carefully considered in tandem with legalities of the Bill.

He also stated: "I want to clearly reassure anyone who is providing ‘digs’ or planning on renting to a lodger, including students, in the coming months not to be deterred from doing so for fear of this Bill and any impending regulation of their homes."

I understand the Government wanting to maintain supply but what is at play with this legislation is simply about making the experience for the student a better one and instilling within that arrangement between the landlord - the person providing the accommodation - a set of very basic rules and regulations that are entirely sensible, humane at the very minimum and that make for, in the current housing crisis, a better experience for the student.

We can all quote chapter and verse examples of issues that have come to the attention of our constituency offices in respect of the exploitation of people who are in accommodation but all we have before us tonight is a piece of work that seeks to set out a set of guiding principles around how that relationship operates, to take the exploitation out of it and to make for a better experience for the student. That is entirely sensible and worthy of support.

When I was a student all of 30 years ago in Ollscoil na Gaillimhe, I paid 21 punts per week for accommodation on the west side of the city; imagine that. That was in the mid-1990s. A privately-owned complex in the city of Cork that is charging €450 per week for a room. That is €450 per week for a room in a privately-owned complex designed for students. In old money - and I stand corrected if I am wrong - that equates to approximately 350 punts. We are not talking about decimalisation here; we are talking about pre the introduction of the euro. Who, in the name of God, can afford to pay €450 per week for a room? We have left it absolutely and utterly to the market and this is why I mentioned the Minister of State's comments. Within government, there seems to be this idea of not doing anything that will spook the market. We need to get back to a set of core principles that ensures that the State, where possible, makes the investment and is a key stakeholder in providing for accommodation for students throughout the country.

I do not see why there is an impediment to that. The State is a major investor across so many different sectors. The State supports business to the tune of millions of euro through agencies such as Enterprise Ireland and IDA Ireland, for instance. I can see no plausible reason the State could not be a major investor in a model that absolutely guarantees that a student and his or her family pay a fair price for the room and the facility they will live in for the duration of their years as a student.

I do not understand how any family can afford €450 per week; it is immoral. Even if the student is working, there is no way he or she can make that kind of wage during an average working week. It is absolutely impossible and requires either the student or their family taking on debt to meet that requirement.

I welcome the Bill. It is good legislation. I welcome the fact that so many stakeholders were involved in this Bill, particularly students themselves. It is a good piece of work. The Government should not be afraid of this Bill. In fairness to the Minister of State, he has accepted the Bill possibly needs some amendments and changes. That is fair enough. I take that point. I believe the Bill, at heart, seeks to make the student experience a better experience and to instil within it some very basic principles and rights that the student will have which are humane and based on common sense. That should not be opposed in any way.

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats)
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On behalf of the Social Democrats, I support this Bill. I thank Deputy Farrell for bringing this Bill forward and I thank the students and student representatives who have worked on this Bill and have been campaigning on it from the different student unions and colleges, and from the USI - Aontas na Mac Léinn in Éireann.

First, I take issue with the Minister of State's response and the core statement he put forward, basically arguing against regulation on the basis that any attempt to regulate could have a negative impact on supply. He made that assertion but did not give any evidence to back it up; none. That could be said about any form of regulation. Do not regulate anything in any sector because it could have an impact on supply but the Government does not put that forward in any other area.

Why is it the Government, when it comes to students and their lived experience renting in rent-a-room accommodation, discount this? Why is it that their experience as human beings renting does not warrant regulation, yet regulation is warranted in every other sphere and form of renting? What does the Government think makes students immune from needing protections in law? The Government has not said anything about this. The Government just said it could reduce supply and just left it there. The Government did not give any evidence or anything to back that up. The "Let's not regulate" argument could be applied to any sector but it would not fly and would not wash but somehow the Government thinks it flies and washes when it comes to students.

Let us think about why the Government is willing to stand over continued mistreatment of and discrimination against students compared to other sectors. That is what is happening. The Government is also making a flawed argument as there is no evidence that regulation reduces supply. I often refer to this in respect of the private rented sector in general. The Tánaiste recently said to me that if we regulate more for renters and put in better protections, it might reduce supply. Looking at the international evidence, the most regulated countries in Europe with the best protections and rent regulations are also the countries with the largest rental sectors. The argument that regulation reduces supply is not borne out by evidence or facts on the ground. The most regulated places with the best rights for renters also have the largest rental sectors. The argument does not hold up.

Of course, the question as to whether we should regulate in an area should not just come down to the idea that it could reduce or impact on supply. It should be about whether we need regulation here, whether there are injustices and whether there is a need for protections. In terms of students and digs, the case is overwhelmingly strong that there does need to be regulation. The Minister of State did not make any reference to the report on the USI national survey on student digs in 2023. It gives some very important student experiences of what actually happens in the sector. As others have said, there are mixed results. There are some very positive experiences. I will read from a couple of examples. The first person states: "I lived in Digs when COVID broke out and I feel the need to mention that the landlord was very kind and allowed me to keep my stuff during lockdown there without charging me rent and even allowed me to stay the night when collecting my stuff that Summer." Some people have great experiences. Another student said: "Avoid living in Digs they should be a last resort." Another said: "Digs landlord was not registered and took advantage of me and my housemates they stole our food and upped our rent many times and we had to comply." Imagine having your food stolen by the person you are renting from. The Government thinks it does not need to regulate this area but this is a consequence of not regulating. That student had no rights and could be evicted straight away. That is what has happened. Students have had their stuff thrown out without any notice, put in black bags and put out in the front garden or out on the street. I have spoken to students that has happened to.

The Government thinks this area does not need regulation, that we should consider it and not rush into anything. These problems have been going on for years. Another student says: "No protections [...] I lost out on my rent and deposit and could not source alternative accommodation, I was forced to commute 3 hours daily." This is what happens if people lose out on their rent or on a deposit paid. They may not have the financial means to source anything else. This student was forced into very long commutes. Other students were forced into dropping out when that happened, yet the Minister of State thinks there may not be a case here for regulation. Another student says:

I felt I did not have privacy. When I left the homeowners would come into my room and move things or tell me that I should move things. When I told them I did not feel comfortable with this they dismissed me.

Again this is a student having their personal space interfered with, which they are renting and paying money for, with a subsidy from the State because there is tax relief on this, yet the Government feels there is no urgency in doing anything about regulating it. People's personal space is being invaded.

I do not need to tell the Minister of State that students can be away from friends and family for the first time in their lives. It can be quite a daunting experience for them. They do not necessarily have the same support networks that others have. They do not always feel in a strong position to advocate for themselves. If they have no rights and there is no regulation, they do not have any legal basis on which to advocate for themselves. They know if they do so they could be evicted. When the Minister of State says we must be careful not to do anything rash, and that if we regulate it might have an impact on supply, he has to address why he thinks it is okay to continue not to regulate or provide basic protections for people who are handing over money for somewhere to live that they should be afforded, the same as anyone else who is handing over money for rent. The Bill does not propose the same rights as people in the general private rental sector. It recognises that this is a different situation and tthat is appropriate. The other point that comes out from the USI national survey is that a lot of homeowners would be supportive of this. The survey shows that most students renting in digs have written agreements with the homeowners. This is a good thing, not just for the student but for the homeowner as well, to have rules and boundaries set out from the start and good communication around that. It benefits everyone.

On the wider issue of student accommodation, when he was Minister with responsibility in this area, the Taoiseach made a lot of announcements about student accommodation. We have had no shortage of announcements from the Government about student accommodation but we have had a shortage of delivery. There has been a real lack of action. I will give examples of three things that could and should be done quickly. First, the student accommodation strategy has to be published as soon as possible. It was due to be published in summer 2023. It must be sitting on the Minister's desk. Second, the borrowing framework for colleges needs to be put in place around student accommodation. There is a number of colleges where the land and planning permissions are in place as is the need for student accommodation but the borrowing framework to allow colleges to borrow to fund that investment is not in place. It needs to be put in place. We are not going to get the shovels in the ground that we need until the Government puts that borrowing framework in place. The other components are all there. There also needs to be a sense of urgency from the Government on this. For example, the proposal for 358 beds at Dartry from Trinity College has stalled due to a lack of Government support. We are talking here about a site that has previously housed students and has been sitting idle for the past four years. There is an active proposal from the college that would bring these 358 beds into use if the Government would support it. We have a housing crisis and a student accommodation crisis. We have active proposals and land in colleges with planning permissions, yet due to Government inaction and intransigence, and Government's failure to put in place a borrowing framework or to give funding for proposals like this, we are seeing the student accommodation crisis exacerbated. There are workable solutions ready to go but we are waiting on the Government to act. We need urgency in terms of protecting students in vulnerable situations and in terms of delivering student accommodation.

8:10 pm

Photo of Mairead FarrellMairead Farrell (Galway West, Sinn Fein)
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Hear, hear.

Debate adjourned.