Latest news with #studentAccommodation
Irish Times
04-07-2025
- Business
- Irish Times
Where will vital student housing come from?
Ireland's housing permacrisis is a wheel with many spokes, one of which is the issue of student accommodation and its provision. It's a question that evokes strong emotions, not least from students, many of whom are on the front lines of the rental market melee or about to join it. Answering it is proving difficult for the Government, and behind the scenes, some of the larger purpose-built student accommodation (PBSA) developers are beginning to lose their patience with the Irish market. On the surface, at least, conditions on the ground would appear ripe for investment. READ MORE Third-level enrolments continue to surge year-on-year, driven largely by growth in the international student population. Of the almost 206,400 full-time students enrolled in third-level education in Ireland last year, just 15 per cent were international students, according to the most recent Eurostat statistics. Union of Students in Ireland supporters march through Dublin in 2023 to demand Government use its €65 billion 'rainy day' fund to tackle the student accommodation crisis. Photograph: Dara Mac Dónaill/ The Irish Times Yet, the number of international student enrolments has surged by 33 per cent in the four years to the end of 2024. By comparison, domestic enrolments were up 5 per cent over the same period. So, while they remain at a relatively small percentage of the wider student body, international students are a fast-growing cohort and, to some extent, are driving growth. In fact, the Government is targeting a 10 per cent increase in the number of foreign student enrolments in Ireland by 2030. It begs the question of how exactly it intends to cater for their accommodation needs. [ Significant investment needed for Ireland to pass its student accommodation test Opens in new window ] The answer seems to be a combination of some public and a lot of private investment. On the public side, then-Minister for Further and Higher Education Patrick O'Donovan in April 2024 unveiled plans to invest €100 million in the delivery of some 1,000 student beds. More than half of the beds were to be delivered across two campus-adjacent schemes; 405 in Dublin City University (DCU), and 116 in Maynooth . At the time, the Union of Students in Ireland accused the Government of engaging in 'smoke and mirrors', highlighting the fact that the 405 DCU beds had already been unveiled in March 2023 as part of a €40 million investment. Opposition TDs, meanwhile, accused the Coalition of having launched the same student housing plan on three separate occasions under the minister and his predecessor, Simon Harris . Former higher education minister Patrick O'Donovan unveiled plans to invest €100 million in the delivery of some 1,000 student beds in 2024. Photograph: SAM BOAL/Collins Photos Still, as Deloitte highlighted in its latest Crane Survey report, the development at Buckley Hall beside the Maynooth campus is 'significant' because of the Government's involvement in the funding. If delivered in the 2025/26 academic year as planned, the 115 or so beds will put something of a gloss on the completions figure. On the private side of the funding equation, the maths is getting messy. Some 1,400 PBSA bedspaces were under construction in Galway, Dublin, Limerick and Kildare in the first quarter of 2024, according to Deloitte, a jump from 1,160 last year. Beyond that, however, it's difficult to get a clear picture of the pipeline. Another big four accounting firm, KPMG , conducted its own deep dive into the sector earlier this year. Commissioned by UK-headquartered student housing multinational Global Student Accommodation (GSA), the research is focused on Dublin due to the concentration of universities and other institutions. [ Student accommodation crisis: 'Renting in Dublin is pretty much impossible' Opens in new window ] And it seems the PBSA sector is suffering from an all-too-familiar malaise. In Dublin alone, some 245 developments have received planning permission since 2018, KPMG said, with the capacity to accommodate 8,599 students. Yet, construction was under way on less than a third of these developments by March, according to the report. Planning permissions for some of these developments, including schemes in Drumcondra , Dublin 11 and Goatstown in South Dublin , are set to expire in 2025 or early 2026. A further 15 planning applications for student housing schemes are in the pipeline. Construction costs, which surged in the wake of the pandemic and remain more than 25 per cent above 2021 levels, appear to be an important factor in this slowdown. These and other issues around planning delays have 'hindered project delivery in the planning pipeline', KPMG said, 'resulting in a notable, pronounced supply shortage which may impact the county's growth and development'. In conclusion, the number crunchers said that the shortfall of student beds in Dublin – which was between 25,000 and 30,000 last year, according to separate estimates – could reach 45,000 over the next decade if the student population expands at the expected rate. Minister for Higher Education James Lawless claimed student accommodation would be exempt from new rent rules. Since, however, the housing minister James Browne said there will be no such special exemptions. Photograph: Nick Bradshaw / The Irish Times Against this backdrop, KPMG said accelerating the delivery of PBSA schemes is 'crucial', particularly outside the typical city centre clusters. Despite unveiling a new long-term policy to develop student housing last year, there has been 'limited progress in certain campus projects', the report's authors said, and policies aimed at accelerating delivery are much needed. GSA, which commissioned the KPMG report, has expressed frustration with the Government's approach. Backed by the likes of private equity firm Harrison Street, it operates some 4,000 student beds through its Yugo brand name across prime locations in Dublin and Cork, making it one of the biggest landlords in the country . Despite its heft, the company say it has struggled to get the attention of successive ministers for higher education. Documents, released to The Irish Times under the Freedom of Information Act last year, revealed that the global operator had been unable to secure a meeting with Mr O'Donovan, despite several requests during his term in office last year. GSA said this lack of engagement has continued into 2025, and under the new minister, Fianna Fáil TD James Lawless . 'For over a year, we have sought engagement with the Government but have yet to secure a meeting with any minister,' John Jacobs, global head of capital markets at GSA, said. [ Minister wants exemptions to new rent rules to be considered for students sharing houses Opens in new window ] The global PBSA operator is particularly aggrieved, given the substantive changes to the Government's Rent Pressure Zone (RPZ) scheme that were announced last month. GSA is in the dark, more or less, as to whether the changes will affect its business in the Republic or not. In the week that the overhaul – which the Central Bank has said will cause 'pain' for renters – was announced, Minister Lawless claimed student accommodation would be exempt from what Opposition TDs have characterised as a loosening of some of the rules for landlords. However, later in the week, Housing Minister James Browne said there will be no special exemptions for student housing, appearing to contradict his parliamentary party colleague. GSA said it was deeply concerned about the ambiguity. Mr Jacobs said that if student housing was exempt from changes in regulation to RPZs, it would be 'a disastrous regulatory shift and a tipping point for investment and for the future development of much-needed homes for students in Ireland'. Getting to the bottom of the confusion has proved more difficult than predicted. Asked to clarify the minister's understanding of the matter, a spokeswoman for the Department of Higher and Further Education said last week that 'engagement' was happening at an 'official level' between it and the Department of Housing and would 'continue over the coming weeks'. She said private providers have a 'significant role' to play in solving the student housing crisis and that senior departmental officials have met the large operators since the student accommodation unit was established in 2022. Meanwhile, a spokesman for the Department of Housing said translating the RPZ changes into legislation was a 'high priority' for the Government. 'Tailored rent control provisions for the student-specific accommodation sector will come into effect on March 1st, 2026.' As to the precise nature of these arrangements, the minister 'will continue to engage' with the higher education minister in the drafting of the legislation. Rent pressure zone limit what you can charge tenants but you will get no allowance from Revenue for the loss compared to market rents. Photograph: iStock GSA is only one player on the PBSA pitch - and its relationship with the Government parties has been a troubled year, the firm had threatened legal action against the Coalition after then-higher education minister O'Donovan enacted legislation to ban private student landlords from forcing students to accept leases longer than the traditional academic year. Those changes were announced by his predecessor, Simon Harris, in response to an outcry from squeezed students and Opposition TDs over Yugo's and Hines-owned Aparto's decision to switch to a 51-week lease model. Still, the RPZ debacle continues 'a pattern of big policy decisions being introduced without meaningful consultation with those actively delivering homes', Mr Jacobs said. Last year, the Department of Higher Education formed an expert advisory group on student accommodation. In response to queries last week, a department spokeswoman said its membership consists of civil servants, nominees from the Higher Education Authority, lobby group Irish Institutional Property (IIP), University College Dublin and the Housing Agency. Apart from Hines, which is a member of IIP, none of the big student landlords are on the panel. [ What the new rent rules mean for landlords and tenants Opens in new window ] Why, exactly, the Coalition appears so ambivalent is unclear, but also, some in the industry believe, it is emblematic of the decision-making paralysis in Government on housing matters. After all, the State is hugely reliant on the private sector to deliver and operate student beds and has been for the past decade, after the universities effectively exited this stage during the austerity years. Of the 48,000 or so private student beds in the Republic last year, according to departmental figures, two-thirds were provided by the private sector, with higher education institutes operating the remainder. However, it is unlikely that PBSA alone will solve the crisis. According to the KPMG report, off-campus student housing schemes are on average 16.5 per cent more expensive than on-campus PBSA and 9.5 per cent more expensive than on-campus accommodation provided by the universities themselves. That means it typically caters to deeper-pocketed international and postgraduate students, who remain a small subsection of the student population, albeit a rapidly expanding one. Opposition parties, particularly Sinn Féin and the Labour Party , want the Government to give third-level institutions more funding and a freer hand to approach developers directly to build student housing. Privately, PBSA operators and investors believe it's unrealistic to expect universities and institutes to deliver at the scale required to solve the crisis. In the middle of all this are the already-squeezed students and their parents, buffeted by rising living costs and staring down the barrel of a €1,000 hike in third-level fees in the 2025/26 academic year. There is little evidence at the moment that the politicians will be able to get their arms around the situation any time soon.
BBC News
03-07-2025
- Business
- BBC News
Flooding worries about Premier Inn hotel rebuild plans in Norwich
A proposed major rebuild of a "gateway" city centre hotel has been delayed amid concerns about its design and flooding and pollution. The Nelson hotel - run by Premier Inn - and its surrounding site, near Norwich train station, has been described as in an "end-of-life" state. Plans for its demolition and rebuild alongside new flats and student accommodation were lodged with Norwich City Council last October but the seven-storey height of part of the proposal led to objections. Whitbread, which owns Premier Inn, said it was "a real opportunity to improve this key gateway site in Norwich". It had been hoped the new hotel would in June 2027 but Whitbread and the city council have both told the BBC it is unclear when a planning decision could be made.A city council spokesperson said: "Officers are continuing to work with the applicant, however, a date for it to go to planning committee has not, as yet, been identified."There have already been two phases of public consultation. The latest plans propose a "vibrant new gateway to the city" with 248 rooms - up by 63 with the building ranging in height from seven to five vacant former HMRC offices in Prince of Wales Road could be demolished along with a significant reduction of car parking spaces. Plans are in place for up to 75 homes and 491 rooms of student accommodation as flat blocks of a maximum six storeys in height The site currently has 165 car parking spaces but this would drop to just 13 with four added for light goods vehicles and 14 for disabled people, alongside 219 cycle its plans, Whitbread describe the pressing need for a rebuild, saying: "The end-of-life site presents an uninviting gateway to Norwich and is in need of significant regeneration to secure its long-term contribution to the city's future."However, both Anglian Water and Norfolk County Council have recently raised concerns about potential additional risks for flooding and water pollution. 'Too tall' Anglian Water has urged Whitbread to discuss a range of issues it needs more information about, stating there is "an unacceptable risk of flooding downstream".The county council's flood risk officers have lodged objections and also asked for a range of further information, highlighting a need for a flood risk assessment and a drainage follows Historic England raising concerns that the development "was too tall and out of character with the conservation areas and nearby listed buildings", while adding that it "was keen to see the site redeveloped".The Broads Authority has also said the buildings will be "over-bearing" and "imposing" when viewed from river heights. The site has been home to a hotel for more than a century, with the former Great Eastern Hotel demolished in 1963.A Whitbread spokesperson said: "We're not able to confirm timings until planning consent has been secured."Our consultants have submitted detailed technical information on flood mitigation as part of the planning application and are working closely with the relevant authorities, including the [city] council's experts, to ensure that any concerns are properly addressed."The existing hotel no longer meets Premier Inn's modern operational requirements. "The proposed redevelopment would provide a larger, more sustainable building that better meets the needs of staff, guests and the business."It's also a real opportunity to improve this key gateway site in Norwich." Follow Norfolk news on BBC Sounds, Facebook, Instagram and X.
Irish Times
19-06-2025
- Business
- Irish Times
DCU took in nearly €13m from its student accommodation last year
DCU took in €12.92 million from its student accommodation in 2024, down marginally on the €12.97 million made the year prior. The figures, reported by a subsidiary of the university to the Companies Registration Office , bring the total income generated by Irish universities from student accommodation to €126 million for the year. An analysis of the financial accounts for Ireland's main universities by The Irish Times showed the income from student accommodation has nearly doubled since 2015 as third-level institutions have hiked fees and invested in new accommodation blocks. Universities made €117.6 million from student accommodation in 2023. Excluding Dublin City University, which had not published its consolidated accounts, the figure for 2024 stood at €113.5 million made from their residences. READ MORE [ Minister wants exemptions to new rent rules to be considered for students sharing houses Opens in new window ] The publication of the accounts for the north-Dublin college's holding company subsidiary, DCU Educational Supports DAC shows that the sector-wide figure broke €120 million for the first time. The company operates the renting out of student residences on DCU campuses, runs language and translation services, and a series of other commercial services for the university. Its accounts show that DCU pocketed €12.92 million from their student accommodation in the year to September 2024. A spokesman for DCU said a significant portion of the revenue from its student residences is generated 'during the summer months, when undergraduate beds are not occupied, when we charge full commercial rates' to visiting students, academics and tourists. The college is planning to add an additional 405 new beds aided by Government funding. This came after plans to construct 1,240 beds had to be paused and eventually scaled back due to what, DCU chief operations officer, Declan Raftery described as 'escalating costs of construction' resulting in the development 'simply not being viable in the absence of support from Government'. Income at the university-owned company increased to €51.5 million in 2024, up 2 per cent from a year earlier. Costs of sales decreased by more than €850,000 to €16.37 million, but the savings were absorbed by significantly higher administrative costs which rose €3 million to €30.07 million. As a result, the company saw profits drop slightly from €4.17 million to €3.57 million. The main income sources for the company are DCU's student residences, which accounts for a quarter of its income, as well as English language teaching and translation services – €9 million, and construction services transfers of €8.8 million. The company reported income of €5.6 million from its catering services. Staff costs rose last year to €10.8 million, and the company made a donation to its parent company, Dublin City University, of €1,29 million in the year ending September 2024, having made a slightly larger the year prior, of €1.55 million.
Telegraph
15-06-2025
- Politics
- Telegraph
Student blocks leased by Home Office to house migrants empty for year
Student blocks leased by the Home Office to house nearly 700 asylum seekers have stood empty for a year at a cost of millions of pounds to taxpayers. The blocks were built in 2019 for Huddersfield University students and feature 'spacious' studio bedrooms, dining rooms, kitchens and a gym, but have never been used. They were leased for an estimated £7 million in spring 2024 by the Tory government to provide a cheaper alternative to hotels for asylum seekers. However, they are still empty with no final decision on when migrants might be moved in. Rachel Reeves, the Chancellor, has pledged to axe the use of hotels for asylum seekers by the end of the Parliament in four years' time. At the end of March 2025 there were more than 32,000 asylum seekers in hotels, costing up to £6 million a day, out of a total government bill for asylum accommodation and support of £3.6 billion for the current year. It is understood negotiations are under way between Home Office and local council officials to place asylum seekers in the blocks but a source familiar with the talks said a decision on moving them in was 'months away'. It is part of attempts by Labour to use alternative 'mid-sized' sites including empty tower blocks, former student accommodation or vacant college buildings as an alternative to hotels. The new strategic partnerships would see accommodation either be owned by councils and leased to the Government for asylum use or secured by the Government and leased to local authorities. A Home Office spokesman said: 'Decisions on the future use of accommodation sites will be made in due course in consultation with local authorities and other stakeholders. 'This [Huddersfield] lease agreement was agreed before the election and change of government. No asylum seekers will be moved into the site until it is ready for occupancy, including meeting legal and building regulations.' The Huddersfield student blocks were one of four large sites identified for asylum seekers by the last government. They included the Bibby barge in Portland and former RAF bases at Scampton in Lincolnshire and Wethersfield in Essex. Labour shut down the Bibby and handed Scampton back to the local council, which now plans to turn the former Dambusters' squadron base into a national heritage site and aviation hub. Wethersfield is still being used to house hundreds of asylum seekers. The Home Office earmarked £358 million to use the Huddersfield blocks until 2034, according to the National Audit Office, which had access to internal data. This included running costs of £24.7 million a year and £7.1 million for 'site acquisition, lease and set up' in 2024/25. The Home Office said these were estimates and the actual cost was lower. After the blocks were built in 2019, they were issued with a prohibition notice following the Grenfell Tower fire as their cladding and internal fire protection works were judged unsafe. Remedial work costing almost £12 million – including refurbishing the studio bedrooms – was carried out in 2023 ready for student accommodation that September until the Home Office secured the site for asylum seekers. The Home Office denied at the time that students had been kicked out. 'Students who had enquired about the accommodation prior to Home Office involvement were informed by the housing company that they would need to seek alternative options,' it said. The Home Office interest came amid a growing backlash against asylum hotels. The numbers of migrants in hotels hit a high of 56,042 in September 2023 at a cost of £8 million a day. The Tories suggested then that migrants could move into the site in autumn 2024 but then lost the election. Labour has been reviewing asylum sites since inheriting the four 'big' sites from the Tories. A Home Office spokesman said: 'We inherited an asylum system under exceptional pressure and are urgently taking action to restore order and reduce costs, having already made asylum savings of half a billion. 'We are making strong strides to deliver a more sustainable and cost-effective asylum accommodation system. This includes ending the use of hotels, testing new locally led models and working closely with local authorities and other departments to ensure a fairer, more efficient approach that supports both individuals and communities.'
BBC News
10-06-2025
- Business
- BBC News
Student housing plan for 18th Century building to be considered
Plans to convert a vacant 18th Century building and an office block in York into student accommodation are to be considered by councillors later this Residences UK wants to adapt the Grade II listed property in Main Street, Heslington, and an adjacent office building, known as The said the plan aimed to meet future demand for a forecasted shortfall in student accommodation, but Heslington Village Trust said the scheme threatened the area's quiet, rural plans, which have attracted 19 objections, are set to go before City of York Council planners on Thursday. The applicant's agent, O'Neill Associates, stated the plan to convert the buildings into four clusters, with 17 bedrooms overall and eight studio apartments, would allow existing buildings to be viably re-used after alternative uses had been deemed objectors to the scheme claim the development could cause parking problems, noise from its residents and conflict with the character of the village.A previous decision on the application in March was deferred to seek further clarity on campus-based student accommodation at the University of York and the marketing of the to the Local Democracy Reporting Service a council report on the plans, following the previous meeting, stated there was currently no unmet demand for housing that the university needed to it added that because the site was classed as being on the university campus, there was no requirement to address a potential loss of an employment site. Listen to highlights from North Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
