Victoria University chooses loss over raising hall fees

Monday, 6 November 2023

Four Te Herenga Waka—Victoria University of Wellington halls will see their fees decrease, as the university works to support financially struggling students.

For a second year in a row, Te Herenga Waka—Victoria University of Wellington expects to make a loss on its accommodation services to support financially struggling students.

Last year, the university announced it was expecting a $1.8 million loss across its student accommodation service having chosen to only increase hall fees by an average of 4%, rather than the 9% increase required to break even.

Campus operations director Simon Johnson said the university was working hard to “support our students in light of the challenging accommodation environment and economic climate”.

It would be decreasing next year’s fees by an average of 4.5% at four halls ‒ including Joan Stevens, Boulcott, Cumberland and Te Puni Village ‒ while keeping fees the same at others.

Weir House is the only hall to see its fees increase next year, after remaining the same in 2023. (File photo)

Just Weir House, which saw no increase this year in recognition of the impact of ongoing construction work, would see a “modest increase in fees”, up from $344 a week (or $12,728 a year) to $360 a week ($13,680) for a twin-share room or $494 a week ($18,772) for a single room.

Earlier this year, the university confirmed its redevelopment of the Weir House precinct off Gladstone Rd had been paused, despite part of the James Hutchinson wing having already been demolished in 2021 and more than $3.3m being spent on project consultant costs to date.

The most recent draft business case, which would have led to the creation of an additional 400 beds, put the cost of the project over the initial $74.5m quoted.

Johnson said the decreases in accommodation fees would result in an operating deficit for its accommodation services, though he did not specify how much.

Other factors such as the impact of inflation on operations and maintenance costs would also affect finances, he said.

The university has seen strong demand with many halls already filled. (File photo)

Knowing how difficult the current economic climate was for students, the university was doing as much as possible to ensure its student accommodation provided value for money, was a supportive home away from home, and met expectations.

“We are determined to support our students by ensuring that we offer some of the most affordable and supportive student accommodation options in New Zealand.”

The university was seeing “strong demand for all of our halls”, with some fully allocated already.

Victoria University of Wellington Student Association president Jessica Ye praised the move by the university, saying it was a “good move given the cost of living crisis in Wellington”.

A student petition was launched after the University of Auckland recently announced plans to raise catered-hall fees by an average of about 8% next year. It said student loans and allowances were simply not enough to cover rent.

In the example of a single, catered room at Weir House ($494 a week or $18,772 total), a student receiving both the student loan and allowance would still be short about $133 a week or $5000 for the year.

Rent and cost of accommodation was one of the biggest challenges for students, Ye said.

“Halls in general are very expensive and not affordable to most students,” she said.

However, she said university could also be “quite an isolating experience” and halls helped provide community and connection, especially for first-year students.