Sinn Fein finance minister reviewing rates exemption for student accommodation in Northern Ireland

Student accommodation blocks are currently exempt from rates in Northern Ireland despite the number of facilities doubling in a year – the finance minister says she is assessing the results of a consultation on the issue.
By David Thompson
Published 14th Feb 2024, 11:43 BST
Updated 14th Feb 2024, 17:00 BST
Finance Minister Caoimhe Archibald will have to decide whether or not student accommodation should continue to have a rates exemption. The Executive parties have all claimed they are capable of taking tough decisions to provide a financially sustainable government. Photo: Jonathan Porter/PressEyeFinance Minister Caoimhe Archibald will have to decide whether or not student accommodation should continue to have a rates exemption. The Executive parties have all claimed they are capable of taking tough decisions to provide a financially sustainable government. Photo: Jonathan Porter/PressEye
Finance Minister Caoimhe Archibald will have to decide whether or not student accommodation should continue to have a rates exemption. The Executive parties have all claimed they are capable of taking tough decisions to provide a financially sustainable government. Photo: Jonathan Porter/PressEye

In response to a question from the DUP MLA Diane Forsythe, finance minister Caoimhe Archibald says that 33 properties in Northern Ireland – used for student accommodation – are exempt from paying rates.

That costs Northern Ireland ratepayers over two million pounds per year. The exemption was introduced in the 1970s and excludes any “hall of residence provided predominantly for the accommodation” of students.

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Since then, large privately owned developments have sprung up around Belfast city centre in particular.

In 2023 there were just 14 properties exempted – but that has more than doubled to 33 in the past year.

Minister Archibald said “My department has just concluded a consultation on non-domestic and domestic rating measures including the exemption for student halls of residence. I will be assessing the findings of the consultation, alongside a number of other strategic areas that I wish to consider within the rating system”.

Yesterday, the government said that £113m of revenue needs to be raised by the government in the next 12 months as part of a £3.3bn funding settlement for the Executive. Minister Archibald responded saying: “the requirement that we raise £113m through locally generated revenue in the next 12 months is not consistent with a strategic Sustainability Plan. To expect this funding to be generated in such a short space of time can only serve to cause more harm to hard-pressed families, households and businesses”.

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Decisions on removing rates exemptions and a rates cap will have to be considered as part of any revenue raising measures.

The Department of Finance said in a statement: “The consultation on Non-domestic and Domestic rating measures including the exemption for student halls of residence concluded yesterday (13 February) with almost 1,400 responses received.

"The Finance Minister will be assessing the findings of the consultation, alongside a number of other strategic areas within the rating system.”

Related topics:Northern IrelandSinn FeinCaoimhe ArchibaldDUPBelfast

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