Huge new investment in student housing
Financing worth almost half a billion euro has been agreed for the delivery of more than 2,700 new high quality, affordable student beds in Ireland.
Last week, the European Investment Bank (EIB) and the Housing Finance Agency (HFA) agreed an overall sum of €434 million for student accommodation as part of a financing initiative supporting higher education institutions.
The scheme, which backed by a 40 year €200 million EIB loan, is the first dedicated EIB backing for student construction and renovation of student accommodation in Ireland.
Speaking at the agreement signature ceremony in Dublin, Minister for Further and Higher Education Simon Harris called the move “fantastic news” for Irish universities and their students.
“Every student bed we create has a double benefit. It helps the student and their family, but it also frees up private rental accommodation in our cities and towns,” said the minister.
“This investment by the EIB and HFA will have significant benefits for access to education, and crucially to the wider housing market,” he added.
Minister for Housing, Local Government and Heritage Darragh O’Brien also welcomed the announcement: “The HFA is already playing a significant role in facilitating the delivery of thousands of social and affordable homes throughout the country. So, it is well placed to play a lead role in improving the supply of student accommodation.”
Announcing the deal, Werner Hoyer, President of the European Investment Bank underlined his organisation’s commitment to backing investment in education across Europe.
“Over the last decade we have supported transformational investment at hundreds of Irish schools and all Irish universities, as well as construction of social housing across the country,” said Mr Hoyer.
“The €200 million 40 year EIB financing agreed with our long-standing partner HFA today will help provide students with better and more affordable places to live and reduce pressure on local housing,” he added.
The aim of the initiative is to provide long-term financing to Irish higher education institutions to support the construction of new modern and energy efficient accommodation buildings, as well as the renovation of existing buildings to improve facilities and energy efficiency.
The EIB backing will reduce financing costs for universities and enable lower monthly rents for students living in new accommodation.
To date the HFA, the Irish government agency responsible for providing financing to support social and affordable housing, has approved financing of €261.2 million to support the delivery of 2,403 student beds.
Discussions are already underway with Irish universities and technological universities about the provision of financing from this new fund to support the construction of additional student housing.
The news comes shortly after students at MTU Cork staged a mass walkout in a protest calling for better and more affordable student accommodation in Cork.