USI Demands Action Over Student Housing Fraud

The Union of Students in Ireland (USI) has demanded the Government investigate fresh claims – this time from a member of Labour’s shadow Cabinet – that, in some cases, designated ‘Section 50’ student accommodation is being rented to the general public by rogue landlords.

USI DEMANDS ACTION OVER STUDENT HOUSING FRAUD

12 May 2006

The Union of Students in Ireland (USI) has demanded the Government investigate fresh claims – this time from a member of Labour’s shadow Cabinet – that, in some cases, designated ‘Section 50’ student accommodation is being rented to the general public by rogue landlords.

The suspected fraud involves rogue landlords claiming a special tax break for developments built ostensibly to accommodate students – even as they rent these properties to full-time wage earners at much higher prices.

USI highlighted the potential scam back in March, but yesterday – following two months of Government inaction – Labour Party spokesperson for consumer affairs, Kathleen Lynch, told the Dáil she was “quite sure” some Section 50 developments continue to be inhabited by full-time workers and not students, based on her own observations in Cork.

USI President Tony McDonnell said: “Two months after USI highlighted this apparent fraud involving rogue landlords claiming Section 50 tax breaks while renting student accommodation to full-time wage earners, we are appalled that the Revenue Commissioners still haven’t begun to identify the landlords responsible.

“The whole point of Section 50 student housing developments was that these units were intended to be offered exclusively to students – students who, generally speaking, are significantly poorer than full-time wage earners. After two months of dithering while students were deprived of affordable student housing, USI is grateful to Kathleen Lynch TD for calling on the Government to at last take action over this abuse.

“It is clear to students that a few rogue landlords are committing something close to fraud – making false representations to Revenue, and putting poorer students at risk of having to enter dangerous, substandard housing, because all the affordable housing has been subverted. The Government must now end its months of inaction and step in to prevent continued abuses of the Section 50 scheme”.

Ends

For more information please contact:

Tony McDonnell, USI President 086 8374104
Ryan Brennan, Development Manager 01 4353400