The Private Students Housing Association (PSHA) has dismissed allegations of collusion and price-gouging which it says have been levelled against private student accommodation providers by the National Student Financial Aid Scheme (NSFAS), the Department of Higher Education and Training (DHET) and the Portfolio Committee on Higher Education, Science and Innovation.

The PSHA, which said the claims were baseless, blamed government policy uncertainty as a direct cause of unaffordable student accommodation.

It is urging open and constructive dialogue with Higher Education, Science and Innovation Minister Blade Nzimande.

To date, the association says its members have invested about R15-billion over the last eight to 10 years, and have provided over 70 000 beds for tertiary students across the country, while adhering to the DHET’s minimum norms and standards for student accommodation at public universities.

“We are committed to supporting government to achieve the goal of affordable, quality private student accommodation but require a level playing field, policy certainty and clarity, as well as an open and constructive dialogue to be able to do so,” the PSHA said.

It said the prescribed minimum norms and standards regulations in the formal student housing industry are set by government and this results in higher than necessary building and operating costs.

“Formal private student housing providers are often unfairly held to higher standards than public university student housing in respect of complying with these regulations. Yet, rentals in many private residences are in line with those rentals charged by public universities and reflective of market-related costs,” it said.

It went on to say the current NSFAS system gave varying levels of autonomy and responsibility to tertiary institutions and intermediaries to manage student housing allowances, which they were generally ill-prepared and under-resourced to do.

The association also highlighted that the 2023 accommodation allowance of R45 000 did not allow for any grading system to differentiate the quality of accommodation and services offered to students. The allowance also cannot meet the costs of providing compliant and appropriate accommodation.

“As part of our efforts, PSHA and individual operators made submissions in respect of the Minimum Norms and Standards Regulations in December 2021 with no acknowledgement or indication of when and how further engagement would take place,” the association said.

The PSHA is appealing to the NSFAS, DHET and the Portfolio Committee on Higher Education, Science and Innovation to include it in consultations and deliberations on student accommodation as it says it can play a valuable role in reaching a sustainable, long-term solution.