Students continue to struggle to pay for accommodation in Dublin despite falling rents, according to the Union of Students of Ireland (USI).
A national survey by the USI on the cost of going to college shows that average monthly expenditure on accommodation increased slightly from €284 in 2002 to €291 in 2003.
"Rents in general haven't fallen to the extent that it is reasonable for students to live in the city centre," says Mr Will Priestley, incoming president of the USI. "You can go outside the city centre, but then you have transport costs."
Thousands of students are unlikely to benefit from significant drops in rent, letting agents say, as the supply of properties at the cheaper end of the market has not increased as quickly as at the top end. "The lower end of the market is still quite strong," Ms Eileen Sheehy of Sherry FitzGerald Sheehy says.
In one property designated as student accommodation in the catchment area for UCD, a one-bedroom flat has a rent of €910 a month, while a two-bedroom flat rents for €1,820. Ms Sheehy says four students would typically share two-bedroom accommodation, putting two beds in each room.
"There's still quite a bit of demand for good properties," confirms Mr Mick Kennedy of Sherry FitzGerald Kennedy Lowe, based in south Dublin.
A South Circular Road property with five large double rooms, which Mr Kennedy thinks will be sought after by a group of 10 students, costs €2,200 a month.
Students are coming up against another barrier as well.
"A student looking for a house is always going up against a young professional and landlords are always going to rent to professionals first," says Mr Priestley.
Letting agents and property managers describe students as risky tenants, who leave in June, take in extra people and don't take care of the property.
However, Mr Kennedy says that, while some buy-to-let investors in the residential market will state "professional only", many have recognised they cannot afford to be picky in today's market. "At the end of the day, they have a mortgage to pay."
Landlords trying to get rent for older properties are realising that they must be in good condition to attract anyone, Mr Kennedy adds.
"Students want reasonable quality living quarters, they don't want a slum," he says. "They don't want to be going into a poor living environment, with water leaking. You would find it hard to study in a place like that."
Mr Priestley says the USI will wait to see if reports of 10-20 per cent drops in rents in the Dublin area eases the financial stress on students. But what the USI really wants is for more students to be able to avoid the private rented sector altogether.
In Ireland, only 8 per cent of students live on campus or in special-purpose student accommodation near campus. This compares with a European average of 20 per cent.
Supply of affordable accommodation in student centres such as Cork, Galway and Limerick is not as bad as it is in Dublin, Mr Priestley says.
Other places are coming on stream for Trinity College Dublin, but Dublin Institute of Technology (DIT) has no student accommodation.
The USI is concerned about the long-term supply of student accommodation. One problem with Section 50 tax relief for investors building or refurbishing student accommodation within an eight kilometre radius of campus facilities is that investors must only own the apartment for 10 years to avoid a clawback on the tax relief.
"The students are being given accommodation that is quite plush," says Mr Priestley. "But the developers are thinking 10 years down the line to when they can get more money off the open market."
