Student accommodation crisis: ‘I think it will be worse than ever’

Patrick Curtin is worried. As president of the students’ union at South East Technological University’s Waterford campus, he is preparing for a surge in requests to find scarce accommodation in a few weeks’ time. The early signs are not looking good.

On-campus beds are fully booked out. Private rented accommodation is thin on the ground. In recent days, he has been talking to hotels in the area to see if they can do student-friendly deals come September.

“It’s not a long-term solution, but it is a fallback option for students who can’t find anywhere to stay,” he says.

A Covid-related shortage of housing and student digs, pressure to accommodate Ukrainian refugees and the delayed allocation of college places for first-years have created what many see as a perfect storm this year.

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“I think the student accommodation crisis will be worse than ever,” says Curtin. “We’re a university, now, which may see an uptick in demand. A lot of private accommodation isn’t there any more; it’s been sold on or used for Airbnb… some homeowners have also been reluctant to rent out rooms for digs due to Covid.”

Last year, he said, the shortage of accommodation was forcing some students to travel from as far away as the midlands and Dublin each day.

Given the high cost of fuel, he is worried about how commuting students will cope this year. First-year students, who are due to start college a few weeks later than others, will be especially in a last-minute scramble to find a bed.

“The best way to describe the situation is a mess. Students have been let down by the Government… our advice is to start looking early,” Curtin says.

The shortage of student accommodation crisis isn’t new. In the face of similar controversies, the Government launched a national student accommodation strategy in July 2017 aimed at supporting the development of purpose-built units.

Figures indicate it was successful in helping to deliver thousands of additional beds mainly in the private sector, even if many resembled boutique hotels with high rents. Many of these were targeted at the more lucrative international student market.

Output has since slowed down, however. Latest data indicates more than 40 separate student accommodation projects have been granted planning permission, capable of delivering about 10,500 bed spaces. However, universities say many of the on-campus projects are stuck in limbo. The rising cost of construction means they would be forced to charge exorbitant rents to students in order to break even.

For example, more than two years ago Dublin City University received planning permission for a 1,240-bed student village to meet growing demand for accommodation at its Glasnevin campus.

Work has yet to begin. The university estimated last year it would have had to charge up to €16,000 a year to students, almost three times the cost of its other on-campus accommodation.

DCU president Prof Daire Keogh says the university has been exploring lots of different avenues to make it economically viable, but worries that the outlook is about to get even worse.

“As inflation continues to rise and the expected increases in interest rates by the European Central Bank are introduced, projects to provide accommodation for our students will become even more uneconomic for the university…” he says.

“While we already have planning permission and project tender packs ready to issue, it must be recognised that it would take three years for all the planned bedrooms to be delivered. There is no quick fix for this problem.”

One option which universities think could unblock these projects is State subvention. Under this model, the State would part-fund the developments in exchange for guarantees over affordable rents.

Minister for Further and Higher Education Simon Harris is understood to be in talks with Government colleagues over such a model and how it could work.

In the case of DCU’s planned student village, Keogh says subvention of 50 per cent of the capital cost is the “only realistic solution” in order that rooms can be provided to students at an affordable rent.

“A decision on a subvention is therefore urgently required as in the interim period the situation will only get worse. The accommodation shortage for students is part of the wider issue of housing. More university residences is only one small part of addressing the housing crisis,” he says.

Regardless of what happens, many of the planned beds on college campuses will take years to deliver.

It means there are limited options available to the Government – or universities – in boosting accommodation options between now and September.

One of the ideas being planned is an attempt to kick start the rent-a-room scheme and market it more aggressively.

While the pandemic meant many households were reluctant to explore this option last year, policymakers are hopeful that the rising cost of living may prompt more to consider renting out rooms this year to help supplement their incomes. Homeowners can earn an income of up to €14,000 tax-free under the scheme.

Another option involves cushioning back-to-college costs by cutting the €3,000 student contribution change in September’s budget and improving student grant supports which are availed of by 42 per cent of students.

Given that estimated monthly living costs for students living away from home in the capital are just under €1,500 this year, according to a new cost of living guide from TU Dublin, every penny will count.

Access. to affordable accommodation, though, remains a burning issue. Josephine Feehily, chair of the governing body for Technological University of the Shannon (TUS), expressed worry over the impact these issues will have on the lifeblood of colleges.

Student beds are not just a place to sleep, she said, but key to building a positive campus culture where students can join societies and don’t arrive “exhausted and then go home in the evening”.

In the meantime, student leaders such as Patrick Curtin in Waterford are fearing the worst.

“Last year, when we put up a post on Facebook offering students help,” he says. “I had about 100 messages within 12 hours from students and parents who couldn’t find anywhere… You wonder, this year, will some just end up deferring instead.”