Rent-caps to be introduced to new student accomodation
A step in the right direction.
Legislation which would ensure the inclusion of rent-caps on purpose-built student accommodation has been agreed upon by the Government.
Cabinet met in Derrynane, Co Kerry on Wednesday to discuss the issue of student accommodation and the unprecedented price-rise in rental agreements that has happened over time.
An Taoiseach arriving in Derrynane House, Co. Kerry for a Government Cabinet meeting this morning. pic.twitter.com/w7u8fT5QNX
— MerrionStreet.ie (@merrionstreet) July 18, 2018
Both Fianna Fáil and Sinn Féin introduced private members’ motions in the Dáil, seeking to cap rent for students accommodation.
According to a report from the Minister of State at the Department of Education, a figure close to 3,000 new rooms for students have been built in the last two years 7,000 are currently under construction and a further 7,000 have planning permission.
Mary Mitchell O’Connor, the Minister of State for Higher Education, is to work on Government legislation over the summer.
At present, student accommodation units are exempt from rent pressure zone regulations and are beyond the scope of the Residential Tenancies Board as they are deemed to be ‘under license’ rather than leased to the renter. These rent pressure zones cap rent increases to 4% per year in designated areas.
Also discussed at the meeting was the increase of the minimum wage in Ireland to €9.80 per hour. The increase is due to be introduced in January 2019.
Student accommodation rent hikes made news back in March when students from DCU protested outside the Dáil on Tuesday following an increase in the price of student accommodation.
It had emerged sometime before that, that one of the most important and necessary areas of accommodation for DCU students, Shanowen, would be increasing its prices by 27%.
Students were informed that Shanowen would reportedly be charging €10,000 for a nine-month lease for students who wished to reside there while attending DCU.
Following a series of protests and weeks of media coverage, a Bill was introduced that would give students living in student accommodation the full protection of the Residential Tenancies Act.