Tipperary TD Michael Lowry is accusing providers of purpose built student accommodation of failing to observe the terms of their funding. Deputy Lowry says some providers of Student accommodation particularly in Dublin and Cork are now stating that they will only offer 51 week leases despite the academic year being 41 weeks duration on average. This would result in students or their family being forced to pay up to €3,000 extra to cover the 10 weeks when the accommodation is not required.
In the case of most such purpose-built buildings, their Planning Permission dictates they are only for letting for the duration of the Academic Year according to Deputy Lowry who also points out that in addition to the tax benefits they received, such providers are also exempted from the Residential Tenancies Act because they are providing Student Accommodation for the established 41-week Academic year.
The TD says if the providers seek to try to extend tenancies by charging rent for 51 weeks they should no longer be entitled to such an exemption. A further catastrophe could arise by such action as it would allow such tenants to enforce their Tenant Rights and extend their tenancy by up to 5.5 years – taking the property out of circulation for use by other students. Deputy Lowry wants the accommodation providers to observe the letter and spirit of the agreements under which they were established.
