Digs back in vogue

ABOUT 81,000 CAO applicants have by now received their Leaving Cert results and CAO offers. Once an offer has been accepted, the pressure mounts to secure a base — somewhere to heat the frozen pizza and waffles for the next nine months. The provision of quality student accommodation has been slow to arrive to these shores. The market is playing catch-up, however, and 6,000 new bed spaces are proposed over the next three years.

A number of student accommodation specialists such as Binary Hub and Ziggurat Students have now entered the market. The fact remains that there is still a big shortage of bed spaces for students in Irish cities, especially in Dublin and Cork. A quick glance at our demographics indicates that this number will increase year on year until 2024. This situation is being intensified by a lack of supply of mainstream rental properties nationally. Students find it difficult to compete with professional tenants as they can generally only commit to a term of nine months — in line with the college year. Also student accommodation generally brings higher ongoing maintenance costs thus encouraging landlords to focus on tenants who are in employment.

Costs of accommodation vary hugely depending on location but, according to the DIT Cost of Living Guide, the average weekly cost for renting a house is €115 per week and €200-€250 a week for specialist student allinclusive accommodation. As a result of the shortage, living in digs is back in vogue with college authorities encouraging it as a quick and temporary solution to the shortfall. The advantage for home-owners is that, in most cases, tax is not payable on this type of income up to €12,000.

The return of digs also serves to highlight how under-developed the student market is in Ireland. Something else for Minister Coveney to add to his ever-growing to-do list.