From November, a price cap will apply to 1 in 5 student rooms in large student halls of residence in Ghent. From then on, in all new projects of size developers will be required to offer a minimum number of budget rooms at a fixed price. Ghent is implementing a Flemish government directive already operational in that other big student city, Leuven, capital of Flemish Brabant Province, where the cap stands at 475 euros per month.
Price cap on basic student digs in Ghent: 1 in 5 new rooms gets fixed maximum price
In Ghent, the completion of 15 new large student halls of residence is planned this year. These projects are still subject to the old rules. From November, developers applying for a new building licence will be obliged to provide budget rooms covering 20 per cent of the total.
Ghent City Council approved the introduction of a price cap at the end of October. “From then on, the reference rent will be included in the new management agreement, which everyone must comply with,” alderman Watteeuw says.
“We still need to determine the exact amount. We will do this in consultation with colleges and the university,” says Watteeuw. In Leuven, the capped rent for a budget flat is 475 euros per month. In Ghent, there are currently no caps, and the price depends on the size, location and provider.
Mixed feelings among students
“We’re pleased that more attention is being paid to affordable student accommodation,” says Lara Peters of the Ghent Student Council (GSR). “The rules will also apply to new student accommodation on the private market. The lower returns may deter investors. That could have an impact on supply.”
“We are calling for the Flemish authorities to invest more in subsidised student accommodation at universities and colleges. This new requirement being placed on developers sounds good, but will it actually lead to more high-quality rooms?” wonders student representative Jitske Lutters.
“The city has yet to make the final decision. We would like a seat at the table during the discussions. The figure used in Leuven is higher than the cheapest rooms in Ghent. A higher price could be a barrier for those who are already struggling financially,” says Peters. “We certainly want more basic rooms, but they must also be available at acceptable prices.”
Fixed prices for basic rooms
Ghent has long required one in five student rooms in halls of residence to be so-called ‘basic rooms’. This means that they measure at least 12 square metres in size and have shared facilities. These are already the cheapest rooms on the market. It will mainly be these rooms that fall under the new price cap.
The city does not expect the requirement to drive up the price of other rooms in new student accommodation. “Developers are actually mainly asking for clarity so they can assess the feasibility of their projects. The new agreement ensures they know exactly where they stand,” concludes Watteeuw.
Ghent is introducing the rules only for new and large-scale student accommodation (50 rooms or more). The city is focusing on large projects that also involve mandatory management. Ghent hopes this will limit any nuisance for local residents.