Dáil debates

Tuesday, 2 July 2024

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

 

Question again proposed: "That the Bill be now read a Second Time."

8:10 pm

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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I do not think I can delay this much longer. I will give one more minute before we move on. Níl aon duine anseo, faraor. Leanfaimid ar aghaidh.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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Go raibh maith agat, a Leas-Cheann Comhairle. We have had two debates, previously and now, where there has been a poor turnout of Deputies.

I thank the Deputies who were here for their contributions on this Bill. I will reflect on some of the comments made, taking on board the points made about the challenges facing students. I again thank representatives of the various student organisations in the Gallery for their work on this Bill.

As I stated in my opening speech, the Government is not opposing the Bill. We see merit in discussing it further and bringing it to Committee Stage. That is noted. Deputy Sherlock referred to my opening contribution in terms of reassuring the market. The market we are talking about comprises families who rent rooms for additional income. As was stated, there is sometimes a very good relationship between students and those renting rooms. This is about ensuring that it is a good experience and making it a better experience, which the Deputy said, for students and those renting rooms. The Government is mindful to avoid any unintended consequences in the Bill, and that is why we are happy to discuss it further on Committee Stage.

On the points raised by Deputy O'Callaghan, we are not arguing against regulation; we are merely pointing out deficiencies in the Bill and its legal elements. It is important to state that. I agree with the Deputy on the importance of regulation generally. That is why the RTB exists for the rental sector in general.

The supply issue under Housing for All was raised, in respect of 1,000 new units that are much-needed in the system. I assume the report to which Deputy O'Callaghan referred was the student accommodation survey, which I referenced. Out of the 28,000 students who responded, which is approximately 10% of the student population, 19% stated that their accommodation was digs. It is not about trying to look at the market; rather, it is about trying to ensure that there is a good experience for those renting. We do not want to reduce that supply. We want to make sure the supply stays in the system and grows, which is important.

I take on board the points made on the reasonable use of household facilities, access to facilities in households, the entitlement to locked doors in room rentals and general issues raised by Deputies. I reiterate that we will again advertise the very good rent-a-room scheme, which has been quite successful and has helped to address issues of student accommodation in the short term in many parts of the country. These are important points. I again thank all of the Deputies for their contributions. Deputies may want to make contributions now.

8:20 pm

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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Are you finished?

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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I am, yes.

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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I have a conflict of interest because I am further down the list. The Minister wants to speak on this.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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The Minister of State, Deputy Collins was due to close, but because the debate concluded early-----

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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I understand. I am breaking the rules, but it is almost holiday time. I declare a conflict of interest because I am further down the list. I did my best to invite people into the Chamber. By way of exception, if the Ministers agree I will let Members contribute and we will then come to the Minister of State for what is left of his time. Sinn Féin will then conclude.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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I appreciate that.

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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Thank you for your co-operation.

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent)
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I thank the Leas-Cheann Comhairle and Ministers for the extra time. I would like to acknowledge the efforts of the USI student groups around the country and the many third level institutions, especially student representatives from the South East Technological University, SETU, in my region.

Third level participation in rentals has been a limited offering in Ireland over many years and has been supported by the informal student letting arrangements that have been a large and very necessary feature of the accommodation supply for students in all areas of the country. In his opening statement, Minister of State, Deputy Noonan, recognised the contribution of the private rental sector in the provision of student accommodation. We all know that comes in a range of letting circumstances, largely informal, whether a single room, room share, digs where meals are supplied, etc. Another issue that arises constantly in respect of accommodation is duration, that is, whether a room is available for the duration of the school year or a full year, and what students are charged.

Accommodation has often been haphazard in the past, but circumstances have improved as colleges and the private sector have invested in student placements. This means we now have different tiers of accommodation, which is largely reflected in pricing. Anybody who is lucky enough to get student accommodation in a lottery in first year knows the quality may differ quite a lot from what is available to them in subsequent years of renting in the private sector. That is a fact of life.

There has been a failure, in particular with the development of the TU sector, to provide adequate student accommodation. I want to speak to the institution in my area, SETU. Before it was amalgamated, the campus in Waterford came under the auspices of WIT, the first IT in the country to invest in student accommodation. It did so through its own devices and the successful management of its finances. It provided approximately 600 student residential places, which are still in place today. They provide income for the college to help it meet its overheads. That was the model proposed for TUs when the Bill was being put together, namely that the TU sector would be allowed to borrow for student accommodation and provide that accommodation for their capital requirements. In the future, whatever moneys and recurring revenues were available would go back into the institution to help it support classes, placements, schools, courses and all of the rest. That has not happened.

We are lucky in Waterford that the private sector is trying to step in to fill part of the void as we have a significant difficulty in providing student accommodation in the south east, especially Waterford. Why have we not moved legislation forward? One thing begets the other. Our Taoiseach, who was the Minister for higher education, the first nominated to that position, has given a consistent promise that a borrowing framework would be ascribed to the TU sector that would allow it to borrow off-balance sheet and develop its own student accommodation proposals. That legislation has not been passed and I understand we are now engaged in a review that will certainly go beyond the life of this Government to try to get any movement. There is an inability the system to bake in the capital development requirements that are so important to the development of the TU sector. As that is part of the Minister's portfolio, I ask him to take that on.

Something else that needs to be noted in the provision of third level education is the brain drain factor that affects the regions, especially the south east where we do not have a national university of Ireland and SETU is the only stream of education available. Despite that, given the level of investment we are third or fourth tier in terms of capital infrastructure. I again ask the Minister to take that on.

Students in Dublin, in particular, are now being asked to pay for a full year as opposed to a full academic year, which is becoming a problem. That seems rather unfair, particularly when those flats have been let out by college campuses when students are not there. Whatever about bringing in the RTB to try to formalise the arrangements regarding student accommodation, this is something that should be examined legally. If provision is being given for a let for a year, that provision should be there. If families are forced to take a letting for a year, they should be able to access that property outside of the academic year. I ask the Minister to examine that.

We need to examine the protections for informal lettings. The idea that students cannot lock a door is not acceptable. None of us wants to live in shared accommodation where we cannot feel secure. The first requirement of student accommodation, in particular third level accommodation, is for students to worry about their academic careers rather than their safety or accommodation provision. That should be a given.

I ask the Minister of State to look at formalising some type of licensing arrangement and perhaps a standardised letting arrangement. I am not sure about the idea of getting the RTB involved in this process. It already has a very heavy remit. There is already a lot of dysfunction in the private letting sector without the board having to deal with licensing student accommodation.

There are good ideas in the Bill. They should be supported. We want to give more children the opportunity to access third level education. A significant part of that is ensuring the availability of affordable and safe student accommodation. The Bill has merit in the provisions that address this requirement. Those provisions certainly should be supported.

8:30 pm

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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I thank the Leas Cheann-Comhairle for her indulgence in accommodating my colleagues and me to contribute to the debate. We appreciate it very much.

I thank Sinn Féin for bringing this important Bill to the Dáil. I have been providing accommodation to students for many years. As recently as last night, I dealt with parents who frightened me with the amount of money they have to pay for their child's accommodation and the impact it is having on them. The rent is €350 a week. The difficulty is not just the amount of money parents have to pay but also the difficulty in securing suitable accommodation in a suitable place. It is a serious problem. That is clear when we do the sums. There are many parents who have two or three children going to college at the same time. They may require multiple accommodations in different locations. It is a real difficulty, especially for young couples. The story I heard from the young couple last night is very strongly in my mind. As a young mom and dad, they are under huge pressure trying to take care of the accommodation needs of their child who is going to college. We all want to see students getting a proper education. I am thinking of the Kerry students who have to go to Cork and Limerick for their higher education. Securing accommodation is a real and serious problem. I look to the Government and all Members to take that into account in every way possible.

Photo of Richard O'DonoghueRichard O'Donoghue (Limerick County, Independent)
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There are great pressures being put on people who have children in third level education needing accommodation. It has come to my attention that students who were previously paying for accommodation for the college year, which is approximately nine months, are now being forced to keep their accommodation for the whole 12 months. College students who wanted to earn a few euro for the following school year or for travelling are now being forced to use that money to cover the rent on their accommodation over the summer months. The accommodation providers are afraid to let out their property to somebody else for that period in case the RTB says that person cannot be moved out. They are now telling students they must take the house for 12 months instead of nine. That has put another financial burden on parents of students going to college.

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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We are legislating for that next week.

Photo of Richard O'DonoghueRichard O'Donoghue (Limerick County, Independent)
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I thank the Minister of State. However, we must make sure it is done sooner rather than later. The arrangements must be in place in time for the next college year. We do not want this happening to students. They work long and hard when they are in college. They should not have to pay for their accommodation for 12 months of the year. It is one thing for the legislation to be introduced next week. It is another thing to have it enacted and enforced in time for the new college year. The Government can say at any time that something will be done next week. By the time legislation goes through and is enacted, it could be 12 months or two years down the line. The legislation the Minister of State referred to needs to be enacted and enforced in time to ensure no student or parent has the financial burden of having to pay rent for a full 12 months when the accommodation is only needed for nine months.

Photo of Mattie McGrathMattie McGrath (Tipperary, Independent)
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I thank the Leas-Cheann Comhairle for her forbearance. I was at a committee meeting with representatives of RTÉ.

Curim buíochas agus comhghairdeas leis an Sinn Féin Party for bringing forward this important Bill. It is time sensitive because students have just finished the college year and are looking forward to their summer break before returning in the autumn. The Minister of State understands this issue because he is from a university city. I met his lovely daughter in Leinster House last week or the week before. He is a man who understands this issue because he is going through it. My youngest daughter finished college a number of weeks ago. I have put five girls through college, while the buachaillí went to work. That is the way it is. People might say we are old-fashioned.

We need a sensitive understanding in our approach to a model of student accommodation. It is just not fair to put parents and students under the type of pressure they are experiencing. I have seen the extortion that is happening. My colleague referred to students having to pay rent for 12 months instead of nine. In most cases, student accommodation is rented out separately during the summer months while the students are gone. Are these landlords getting paid on the double? They need to be understanding. I know it is not easy for landlords. I have spoken to the Minister of State about the need to provide on-site student accommodation. It is the best type of accommodation. Students flourish in it because it is near the campus and it is secure. They do not have to be at the mercy of private landlords.

The whole situation is not easy. I have traipsed around Dublin, Cork and Limerick with my wife and daughters trying desperately to find student accommodation. There is a limited supply of properties and an oversupply of young, enthusiastic and wonderful students who want to further their education. They play a huge part in the vibrancy of this country as we go forward. The Minister of State understands all of this. I appreciate his undertaking to change the legislation to address the issue of students being charged for 12 months. That needs to be done. Mol an óige agus tiocfaidh sí.

Photo of Danny Healy-RaeDanny Healy-Rae (Kerry, Independent)
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I thank the Leas-Cheann Comhairle for allowing us time. Like all elected representatives, I am aware of the pressures on students seeking accommodation, especially in places like Limerick and Cork. When they cannot get accommodation, they have to travel every day by bus or some other way. Travelling from Killarney or Tralee to Limerick takes two hours. Going there and back adds four hours to the day for students. It is happening a lot. There are fewer going to Cork but it is still not fair. It is putting undue pressure and hardship on those families. This is something that happens especially to youngsters who do not know whether they will get a college place. Some people might not get an offer until the second round. The people who get places in the first round will have first refusal and those who come later might find there is no accommodation left at all. I have helped a lot of students to get accommodation from private landlords who have a room available.

This debate centres around giving more power to the RTB. I am not sure I want that. A total of 43,599 landlords have left the business. I put a lot of the blame for that on the RTB. I do not want students to be in any way hurt or wronged. They are at the start of their lives, trying to get on the ladder and get going. The answer is that we must provide more accommodation, especially in Cork and Limerick. The current situation is affecting people in Kerry in a way that is causing real hardship.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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It is a significant undertaking to complete the leaving certificate examination and achieve the requisite points for one's desired third level course. That is before we consider the financial burden associated with pursuing higher education. Securing affordable accommodation presents an entirely different set of challenges. This issue, which we witness escalating annually across the country, has deteriorated to such an extent that we now encounter students resorting to living in tents or in their vehicles. The lack of availability of affordable accommodation has emerged as one of the most formidable obstacles confronting students.

The proposed changes could make it easier for homeowners to rent out rooms. This would mean more affordable places to rent, especially in areas where housing is expensive. The Bill sets out what the homeowners or licensers need to do.

This includes letting tenants live peacefully in their rented room and use facilities like the kitchen and bathroom. These protections could make people more interested in this kind of housing, thereby increasing demand for it. The changes aim to make things clearer regarding shared housing but could also lead to more disagreements between homeowners and tenants. This could mean more costs related to solving the disagreements, which could make rents higher. The changes define a student as someone studying full time. If these changes lead to more shared housing, they could affect how affordable housing is for students. While these changes do not directly make housing more affordable, they could have indirect effects by changing the supply and demand for shared housing; however, the exact impact would depend on many factors, such as how the changes are put into practice.

I thank Sinn Féin for introducing this legislation. Student accommodation is an extremely worrying issue for parents and students alike. I am aware of the pressure they are under because my office is inundated with student accommodation cases that need to be sorted out. If the legislation could help in some small way, we would certainly support it. We will scrutinise it very closely to make sure it does help and ensure students are looked after first and foremost.

8:40 pm

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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Gabhaim buíochas leis an gCathaoirleach Gníomhach, Deputy Mattie McGrath, as ucht a bheith sa Chathaoir. Fáiltím roimh an mBille seo agus an obair atá curtha isteach ag na Teachtaí Dála Mairéad Farrell agus Eoin Ó Broin. Tá siad ag díriú an spotsolais ar ghné den earnáil tithíochta seo. Is gné amháin é. I welcome the opportunity to speak on this legislation and thank Deputy Farrell and her colleague Deputy Ó Broin for introducing it. It is very short, amounting to 16 pages, and it puts the focus on one aspect of the housing crisis, namely the inadequacy generally for everybody, including students.

I come from Galway city and welcome the delegations from the universities, including those in Galway. I am acutely aware of the housing crisis, the astronomical figures charged for rent and the unavailability of accommodation. Tomorrow, I will be raising the fact that people who have got refugee status and those who have permission to stay face eviction on 5 July. We are all in receipt of representations about that. Those affected have been told to seek accommodation in Galway city, where there is absolutely none. It is important to grasp, with respect to the HAP scheme, that the people concerned are being told to go on the housing waiting list. Without exaggeration, people have been waiting for 20 years. Then they are told to access a HAP property, but there are no properties available under the HAP scheme, on the basis of discretionary rates or otherwise. We know that from the quarterly reports from the Simon Community.

We have two wonderful universities in Galway and we are about to get a campus for post-leaving certificate students. This represents a very welcome addition to Galway but there is a massive housing crisis. I welcome the fact that the Bill puts an emphasis on very basic matters but I wish to return to some of the general difficulties. The Bill seeks reasonable access to a kitchen, bathroom and garden, permission to lock a bedroom and notice periods, all of which are absolutely basic. Regarding the reference to using the Residential Tenancies Board, I have a little difficulty, but that can be worked out. The board relates to tenant–landlord disputes but this is not a matter of a landlord–tenant situation; it is a question of where an owner of a house opens it up, although there should be protections for both sides, including students. That is what the Bill seeks. However, it is not a landlord– tenants situation but one of licensors and licensees. I am not using these words just to be difficult, but the situation is completely different.

The rent-a-room scheme has been in place since 2021, or for 23 years. In theory, it was wonderful in that, for the first time, somebody could rent out a room in a house for additional income that would not be taxed. I believed it was a wonderful concept because it emphasised ordinary people. Belatedly, we allowed those in local authority houses to participate in the scheme. It was wonderful that the tenant of a local authority could access extra income that would not be taxed. I understand the scheme is to be extended to houses of voluntary housing bodies. I welcome all this but it was never intended to sort out the housing crisis; it was an additional measure that allowed people to earn an extra few cent. In my experience, this was the first time that ordinary people benefited.

Now we are in circumstances in which students, because of the crisis, must rely increasingly on the rent-a-room scheme. Crazy prices are being sought under it and there are stories and anecdotes from both sides. This problem has always arisen because successive Governments, including the current one, have made housing a product to be bought and sold on the open market. It has also done so with student accommodation as well. I am referring to all the horrible things done by those people who are involved in order to make a profit, including restricting the number of months in the year in which one can rent the accommodation and telling students to get out. While it is welcome that we are considering this aspect, we must realise at some stage that the housing crisis did not happen overnight or by accident; it happened because of Government policy, repeated over and over. When the seven presidents of the seven universities – the seven male presidents – appeared before members of the Committee of Public Accounts, they had absolutely no insight into what they had done under their leadership. It has changed since. We have more universities and some female representation, but the individuals concerned were pushing universities as businesses and seeking to get as much money as possible for certain subjects and not others, all the time pushing away the problem of student accommodation. I do not see students as a problem. They were always an integral part of the city in Galway. However, the problem of housing for them was shoved on to the city of Galway, as in other cities. The University of Galway had €64 million in a foundation. I do not know the value now because I do not sit on the Committee of Public Accounts. The foundation involved Goldman Sachs and Coca-Cola and a board in Galway and a board in New York. There was much building under that foundation but no student accommodation. All the time, Government policies were pushing bigger and bigger companies to produce student accommodation on a massive-profit basis, and that has not changed.

I tabled a series of questions repeatedly for the Minister of State’s predecessor, who is now the Taoiseach, questioning the basis on which we were helping companies to build student accommodation. It all seems to be on a private basis, a lease basis, involving giving the maximum amount of public money to companies, which are getting bigger and bigger, to build student accommodation wherever they see fit, not based on nearness to the college, and on the basis of profit and leasing back. I would have believed that if we learned anything from the housing crisis, the Covid pandemic and the transformation and change needed after Covid, it was that universities should all build accommodation that they own so as to have control over the rent and charge reasonable rent. It might be difficult for the Minister of State to listen to this but it is very difficult to listen to it over and over in Galway, where people who come to my office, including students, have no place to go, where people with residency status are being told to seek a house although there is none, as I cannot mention often enough, and where the rent for two- and three-bedroom houses is anything from €1,500 to €2,500 or €3,000. It is absolutely rotten and unacceptable and it is a scandal.

I visited a certain department in the new university in Galway last week or two weeks ago and was very impressed with the potential there. However, when I asked about student accommodation, I learned there was no plan for student accommodation on site. The Corrib Great Southern, with whose demolition order Deputy Farrell will be very familiar, should have been acquired by GMIT, as it was called back in my time. It represented one possible way to solve part of the housing crisis in Galway. The hotel was right beside GMIT but it was sold off and sold again at very low prices. The State should have acquired it, given its location right beside GMIT. Now it has been demolished and we are waiting for the owners to put something on the site. It was a standing hotel that remained empty for years.

The exact same thing occurred at what I still call the university in Galway.

We are in trouble for not using the right name. We zone in on little issues like names and ignore the blatant problem created by successive Governments so that the free market thrives, and when the market does not thrive, the Government will support it every way it can.

I welcome that the Government will not oppose the Bill and will examine it. There are some difficulties in terms of working out the concepts but we need the owners of the houses and the students to be protected. I am open to how we do that being debated on Committee Stage.

The bigger problem of the housing crisis can never be solved in the manner the Government is pursuing because the Government is embedded in and married to the market and does not see the need for transformative action with student accommodation on public land.

8:50 pm

Photo of Niall CollinsNiall Collins (Limerick County, Fianna Fail)
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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.

9:00 pm

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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Dublin City University is one of the top universities in the country. Located in Dublin North-West, it has a well-earned global reputation for both research and innovation. DCU has three academic campuses on the north side of the city located in Glasnevin and Drumcondra. It has 19,000 students studying there. Many of the students who go to DCU are from Dublin and, consequently, can travel from their homes to the college. The college offers on-campus accommodation at both the Glasnevin and the St. Patrick's campus to cater for full-time students and for first-year students in student residences. These students are considered the lucky ones and, like many other students in colleges and universities across Ireland, there are thousands more who have to rely on private rental accommodation. Every year around this time, desperation and panic sets in as students begin the process of looking for some sort of accommodation before the university year starts. The benchmark for accommodation is often set very low as students accept any sort of accommodation, no matter how bad it is or how crowded.

We have all heard the horror stories of students living in substandard accommodation or having to sleep on couches, in sleeping bags, on the floor, in overcrowded apartments or in shared houses. Many others rent a room at a family house, which can have its own problems. Due to the high demand for student accommodation, the chronic lack of properties available to rent and the lack of proper regulation in this sector, students are ripe for exploitation. There is some purpose-built student accommodation such as the Gateway Student Village accommodation and the Aspen Student Life accommodation in Ballymun. The vast majority of students, however, take what they can get and with that they are vulnerable to being exploited, to rents, overcrowding, a lack of privacy, poor accommodation and no proper legal protections. It is stressful enough studying for a degree without having to fear being evicted at a moment's notice without any recourse to a legal remedy.

There is an over-reliance on the private sector to provide student accommodation and this has led to a complete lack of affordability in such student accommodation. Also, students living in digs or rent-a-room situations have little or no rights as they face into the university year. They do so without any security of tenure. Students do not need these sorts of stresses and this can only negatively impact both their mental health and their studies. This Bill will help give security, certainty and protection to students and that is why the Government should support it.

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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I welcome the fact that the Minister of State is not opposing this legislation, albeit I would have to say the some of the speeches have been decidedly lukewarm. I sensed that much of what the Minister of State - he has said many things - has said is about striking the balance and I actually agree. The balance does need to be struck and I do not think that anyone on this side of the House would disagree with that. It is very clear that any type of regulation would need to be very particular and tailored. That cannot be, however, an excuse to do nothing.

I do not have a problem particularly in a housing crisis and in a student accommodation crisis that one tries to use whatever capacity exists. If that includes digs, where that works and where it is decent and secure, then that makes absolute sense. I do not have a problem with the Government incentivising that by way of removing barriers at the very least with regard to the medical cards and some of the other things which have been changed such as the GP visit cards, and the assessments recently.

The Government is providing tax relief of up to €14,000 for rooms which are provided under the rent-a-room scheme and I do not think it is reasonable to provide that level of support without expecting something in return. One of the things which struck me most from the USI report is the fact that 66% of respondents to that survey had a written agreement already. In 68% of those cases, the homeowners themselves had suggested putting one in place as they would benefit from the knowledge that they are standing on secure ground.

I know that there are many arrangements out there that are good, that decent people are providing accommodation to students who need it, the relationship there is very good and they are very decent people. We cannot rely on that, however, to protect the vulnerable students and those students who are being abused or are mistreated in any way. Nobody would want to see anyone belonging to them in a situation where they are told that somebody has to be out like that, overnight. Nobody would want to see, particularly women, in a situation where they feel unsafe, vulnerable, or whether their access to toilets, showers or anything like that is restricted. If there is a problem there, it needs to be addressed in a sensible, balanced way, which we agree with. I say to the Minister of State, however,that that should not be any reason not to proceed and to address it because there is an issue there and that is borne out very clearly from the USI survey.

Photo of Mairead FarrellMairead Farrell (Galway West, Sinn Fein)
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I have brought this legislation forward in good faith. When I see an issue which I think needs to be addressed, I try to address it and bring it in front of this Dáil. I do not believe in just simply shouting from the sidelines and I believe in providing solutions where solutions are needed. I say to the Minister of State that I very much welcome that this Bill is not being opposed and I very much look forward to engaging with the Government on Committee Stage, as we do with most Bills. I very much hope that when we go to that Stage, the Minister of State also will do that in good faith and that he will proactively try to fix this particular issue.

I have some issues with what the junior housing Minister said on this particular Bill. I understand that the junior housing Minister is, of course, not present and I understand that the Minister of State present spoke differently on this. However, the Minister of State said that this should not be rushed. Well, I will tell the Minister of State for whom this legislation needs to be rushed. It is for the student I spoke to who lived in a shed where they paid €700 a month. The shed had been converted into two bedrooms with a makeshift kitchen and a shower installed. It had mould and was not suitable for human living. Another occupant who had moved out before this student had come in was paying €600 a month, but the homeowner then increased the rent by €100. That income accrues to the homeowner tax free.

Another student told her story on Monday on RTÉ about how she lives in an attic and shares a bed with another person. Again, this person has no rights but there is tax-free income for the homeowner.

When I say that I am concerned about the fact that we have students sharing beds with other students in a living capacity, when we have students who cannot lock their door at night, I cannot over-emphasise how concerning that is. I am really, fundamentally and deeply concerned that this is the kind of situation which will end up as an "RTÉ Investigates" programme in years to come.

No one will be able to say he or she did not know of the dangers and concerns the students faced. Other women have told me they were required to undertake childminding duties if they wanted to keep the rooms. I have heard plenty of stories of students who were turfed out overnight with no time to try to sort alternative accommodation. The new academic year is just around the corner and therefore, there is a rush. To say there is no rush is simply nonsense. When that housing Minister of State tells us there is no rush, I note there also seems to be no rush in publishing the student accommodation strategy or in giving a single red cent for student accommodation in last year's budget. Where is there a rush? There is a rush in providing vulture fund student accommodation. We have a situation now in which vulture funds own more student accommodation in Dublin than the Dublin universities themselves. The Minister of State with responsibility for housing seems to have bent over backwards when he stated they "will not be in operation when the new academic year starts in September".

The ironic thing, which that Minister of State clearly does not realise, is that the majority of homeowners actually support this type of legislation. They want to know they have greater securities too. I will give the Minister of State, Deputy Collins, the example of an elderly women who is left with a number of an extra rooms in her house and who wants to make a few bob by renting out a room because there is a huge cost-of-living crisis. That person who is renting from her says he or she cannot pay the rent one week. That continues the next week and the next week after that. That woman needs to have rights too and needs to be able to ensure she can enact what is in that legislation. That is why it is so fundamentally important. The Minister of State has brought forward his intention to fast-track legislation on the issue of the 51-week lease requirements. While that is very welcome, there was no rush in that regard, either. The concerning thing is there are students who may have already signed a 51-week lease contract to whom this legislation will not impact. However, it is very welcome and I hope it is brought into legislation and adopted as soon as possible. I welcome that the Minister of State is here and I really welcome the fact he is not opposing this. I welcome that we will discuss this on Committee Stage. However, the previous Minister of State annoyed me with some of his comments.

Question put and agreed to.