An influential think tank has warned fewer students will want, or be able to, study at St Andrews University if a new HMO policy is brought in as planned.
The St Andrews Public Policy Research Group (PPRG) say a proposed 800% hike in HMO fees and a plan to charge for licences per flat rather than block would set a “dangerous precedent” and make the area less attractive as it would “only offer opportunity to the wealthy”.
The comments come as Fife Council presses ahead with the changes which will see the university’s total expenditure on HMO fees hiked from £54,000 every three years to £512,000 every three years, with expected increases in the cost of university accommodation.
The St Andrews PPRG has called for the increase to be phased in over time to minimise the financial burden for landlord, and for the manner in which fees are calculated for David Russell Apartments (DRA) to stay the same.
There are fears there would be little to stop the council from rolling out the same methodology across other student halls of residence in the town.
A spokesperson for the group said: “The St Andrews PPRG, like the university, is not opposed to fee increases for HMO licenses in principle, but the manner in which this policy has been implemented will result in rents for HMOs being increased across Fife and will have a disproportionate effect on students.
“Part of Fife Council’s role is to make Fife appealing for students who come and contribute significantly to the local economy – not to worsen the reality that many students are dissuaded to attend the University of St Andrews due to high accommodation and living costs.
“As such, fee increases should be gradually phased in to minimise the financial burden for tenants and landlords, the same methodology used for other student halls of residence should be used to calculate HMO fees for DRA and significant discounts should be available to those who provide accommodation for students.
“These proposals, if adopted, will help ensure that HMO-related services are adequately funded in the long term, without having a disproportionately negative effect on the student population of Fife.”
Student Association president Jamie Rodney also slammed the move as “bizarre and irresponsible”.
However, Fife Council said the fees revision was needed because of an increasing number of HMOs and changing legislation over time.
Vania Kennedy, housing service manager, said: “The costs of HMO licensing represent a small percentage of the income that HMO owners will receive through rents and there should be no need to pass on the increase in HMO fees to occupants through rent increases. This is entirely at the discretion of individual HMO owners.”
