Rent cap extension to cripple PBSA development in Ireland

The PBSA Council of Ireland is concerned that extending rent caps on purpose-built student accommodation (PBSA) for another three years will severely hinder the development of much-needed student housing. 

John Jacobs

They argue that restricting rents from returning to market levels until at least 2029 will deter investment, worsen the existing undersupply of student housing, and ultimately harm students, universities, and the wider rental market.
The Council has been actively engaging with the government to explain the financial challenges faced by PBSA operators and developers. They believe that while affordability for students is important, it must go hand-in-hand with policies that encourage investment and sustainable growth in supply.
Ireland's higher education system is growing, but student accommodation isn't keeping up. The Council warns that long-term investors, like pension funds, who provide crucial funding for new developments, will be reluctant to invest if rent caps remain in place. This will slow down new projects and reduce the incentive to build more accommodation.
While supporting the government's goal of affordability, the Council stresses that the best way to achieve this is by creating policies that make new supply viable. They suggest a framework that protects students from sudden cost increases while still allowing for appropriate rent adjustments at the start of new academic years to help kickstart development.
The PBSA Council of Ireland is committed to working with the government to find a balanced solution that improves affordability, restores investor confidence, and speeds up the delivery of student housing. They will continue to advocate for the sector's role in supporting higher education and easing broader housing pressures as the student housing strategy is developed.
John Jacobs, Committee Member of the PBSA Council of Ireland, commented: “It is important that Ireland achieves a rental framework that protects students, but also supports the viability needed to deliver new supply. Extending rent caps in a way that delays any meaningful reset until 2029 risks deterring investment and slowing delivery precisely when additional student accommodation is most urgently required.”