Ireland’s leading private student landlord, the Global Student Accommodation (GSA) has charged the Irish Government with backtracking on earlier housing regulations. The government recently forbade student accommodation groups from issuing leases for only 51 weeks at their establishments within the country. This charge was made in a letter sent to the Minister for Higher Education, Patrick O’Donovan, in July.
GSA, operating within the Republic through its subsidiary platform Yugo, has approximately 4,000 beds under its management. The company stated it had undertaken investments within the Republic grounded on definite government policy statements issued in a 2016 Department of Housing directive to national planning councils.
That directive advised that owing to a shortage of student accommodation, planning conditions related to student accommodation usage should offer flexibility. The directive wanted to acknowledge the necessity to secure a constant rental income year-round to ensure the financial viability of development projects.
However, the same Housing Department directive also suggested that planning councils aim to evade imposing restrictions on student accommodation units being used alternatively during vacation periods. Even though these properties should be preserved for students, the department recommended that planners confirm these developments could be utilised by other individuals or groups during holidays when not needed for students.
Responding to inquiries, a GSA spokesperson observed that their experience of letting tourists rent their properties during summer created operational complexities. The spokesperson elaborated, “In Ireland, roughly 70% of our student clientele is foreign and a majority of them opt to maintain their accommodation throughout the summer.”
Mairéad Farrell, spokesperson for higher education for Sinn Féin, opined that the vagueness in the directive’s language perfectly encapsulates the contradictory rationale characterising the supply of student accommodation in Ireland. “The current model prioritises the interests of large investment funds, with the aim of securing substantial rental returns for these investors. This approach opposes any affordability considerations, does not prioritise students, and simply inflates the cost of tertiary education in the country,” she remarked.
The accommodation provider GSA forwarded a letter to the Minister for Higher Education, outlining their intention to seek legal redress in reaction to the government’s rushed ratification of a bill restricting year-long leases for students to 51 weeks. This letter was released to The Irish Times following a Freedom of Information appeal.
Writing to the Minister in mid-July, GSA indicated their desire to explore all potential legal remedies after the Coalition greenlit the Act’s prompt implementation on July 2nd. The aim was for it to proceed through the Oireachtas before the parliamentary summer break.
In defence of the government’s position on this policy issue, a department spokesperson reiterated on Friday the high financial burden of accommodation on students. He stressed the importance of limiting this cost in duration and quantity to ensure that it does not hinder students’ participation in higher education.
GSA International, a subsidiary within the group, disclosed an after-tax profit exceeding £9.1 million (€10.8 million) for the year ended June 2023, based on the financial records lodged in London in May. The company boasts of managing assets worth £4.6 billion and conducts business in nine countries. The directors’ report attached to the company’s financial accounts highlighted that a combination of increasing demand and proportionally diminishing supply of student accommodation was fuelling rental growth in the company’s key markets.