29 Sept 2022

New rental protection measures announced for Louth students

Intention is to lower barriers to entry into the rental market

New rental protection measures announced for Louth students

Student Accommodation (File Photo)

The Minister for Housing, Local Government and Heritage Darragh O’Brien TD and the Minister for Further and Higher Education, Simon Harris TD, have today announced new student rental protections.

The intention of the legislation is to lower barriers to entry into the rental market, as there is anecdotal evidence of a growing practice of landlords requiring the payment of multiple months’ rent in advance, which is proving discriminatory against lower income groups including those in receipt of social housing supports.

Under the Residential Tenancies (No. 2) Bill 2021 any upfront payment upon the commencement of a tenancy will be restricted to a total value that does not exceed two months’ rent (i.e. a deposit and one month rent in advance).

This restriction will apply to all tenancies including for students residing in student specific accommodation.

A student can make a larger upfront payment if they so wish, by way of an opt-out option, but they cannot be forced to do so.

The Bill also provides that the notice period to be given by students in respect of student specific accommodation will be limited to a maximum 28 days’ notice.

For those who are receiving the SUSI grant, grant payments are made in nine monthly instalments meaning there is a disconnect between the schedule of payments expected by accommodation providers and the payments being received by grant holders.

The rental policy changes announced today are aimed at bridging that disconnect.

Welcoming the provisions Minister O’Brien said, “Today Cabinet have approved the introduction of a number of rental protections which will benefit students. These measures are just the beginning of a suite of rental protections which I hope to bring forward in the autumn to protect all tenants.

“Having met previously with members of the USI, I know they were particularly concerned about students being asked to pay up to a year’s rent in advance and having to provide lengthy termination notices. The measures Cabinet have approved today will go some way towards alleviating the concerns raised.

“We do need to increase the availability of accommodation for students - this is the most effective way to provide real choice and options. I will continue to liaise with Minister Harris and the USI on this matter,” concluded Minister O’Brien.

Speaking today, Minister Harris said: “I want to welcome the measures contained in this Bill. The cost of accommodation can be a significant burden for students and their families.

“Over 40,000 students live in purpose build student accommodation. This measure will help lower the financial barriers by removing a significant upfront expense for students attending college. It will be applicable for the new academic year.

“This is one of a series of initiatives we intend to take in this area but today is an important step.”

The rental measures approved by Cabinet today also included the extension of the targeted protections which are in place for those negatively impacted by COVID-19, in arrears and at risk of homelessness. Subject to the eligible tenant making the necessary declaration they will be protected by rent increases and evictions until January 12th 2022.

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