Call for tax breaks to encourage building of more student housing

Plans to give developers incentives to build more student housing are under consideration by the Government as official figures show more than 25,000 students are competing each year for private rental accommodation.

A study into the availability of student accommodation by the Higher Education Authority (HEA) has identified a "significant shortage" of on-campus student accommodation and privately owned student accommodation in Dublin and "to a lesser extent" Cork, Galway and Limerick.

While several universities and institutes of technology have plans to build new on-campus units, even if these are completed on time “there will still be a significant level of unmet demand in 2024 as the increase in student numbers far outstrips the increase in supply”.

The HEA estimates that 57,104 students sought accommodation in 2014 and this is expected to rise to 68,679 by 2024.

In the same period, the number of student-designated bed spaces, provided either on campus or via private accommodation, is set to rise from 31,296 to 43,496, leaving “unmet demand” of at least 25,000 bed spaces each year.

This is depicted as a best-case scenario as it assumes various third-level student accommodation projects which have been announced – but for which funding has not yet been secured – are completed on time.

The HEA points out that competition for accommodation is set to intensify due to plans by the State’s seven universities to increase their international student cohort.

Such students demand “guaranteed accommodation” for at least the first year at the time of recruitment, if not for the entirety of their studies.

International students

A number of colleges give international students first call on on-campus accommodation, putting added pressure on domestic students.

The HEA analysis forms part of a report being prepared for Minister for Education and Skills Jan O’Sullivan.

It is expected to make a number of policy suggestions aimed at kick-starting construction of student accommodation.

These include tax incentives and a programme of State investment in on-campus accommodation, which would generate revenue through rents and spin-off activity.

A proposal by University College Cork president Dr Michael Murphy for a zero VAT rate on the construction of student accommodation is also to be considered.

Ms O’Sullivan has had some initial discussions with Government colleagues, pending the publication of the HEA report, which is being drafted with department officials.

It is expected the report will recommend the establishment of an interdepartmental steering group between the Departments of Education, the Environment and Public Expenditure and Reform to advance the proposals.