Nama ‘powerless’ to ease student rental shortage
The National Assets Management Agency said very few houses and apartments linked to its loans are empty anyway. It was responding to a student leader at the country’s biggest third-level college who said the student accommodation market is at crisis point.
University College Dublin Students’ Union president Feargal Hynes said rents and sales prices were inflated by the amount of housing left vacant because it was with Nama, which took over billions of euro of commercial loans from the banks.
“We are therefore calling on Nama to release these houses onto the market,” said Mr Hynes.
“Even if they are specifically for the student market, this will have the effect of taking these students out of the normal rental market in Dublin, thus hopefully deflating the price for both the student and normal market.”
Nama said there is a common misconception that it owns individual properties, such as houses or apartments.
“Like any bank, Nama owns loans which are secured, in turn, by individual properties, but is not the owner of those properties,” said a spokesperson. “Therefore it is not in Nama’s powers to ‘release’ properties to accommodate students.
“It should also be noted that the vast majority of residential units, such as houses or apartments, which are linked to loans held by Nama are fully occupied.”
Around 10,000 out of 14,000 units related to Nama-owned loans are believed to be occupied, most of them in Dublin, but also in Cork, Galway, and Limerick. However, many others may be in use as social housing, and Nama can not dictate how debtors generate income from their properties.
Education Minister Jan O’Sullivan is monitoring the student accommodation supply situation and a spokesman said she will consider sustainable plans that can increase it.
“The minister is open to engaging with Nama in relation to potential properties that may be available,” said the spokesman.
Ms O’Sullivan has also said tax relief for people renting rooms in their homes can benefit students and homeowners. However, her spokesman said possible restoration of Section 50 tax relief for investing in rental accommodation for students is a matter for the Department of Finance.
Mr Hynes said the Government should reinstate the scheme introduced in 1999, which is being phased out. Up to 2006 it helped supply 5,000 apartments or houses with rooms for 15,000 students.
“This scheme, we believe will allow students in the future to rent affordable, clean and safe housing while providing a secure option, for both developers and those investors who want a consistent return on their investments,” said Mr Hynes.
He said this would be a first step to alleviate a growing problem with rising higher education participation and Government plans to increase international student numbers to 25,000 by 2015.
