Irish Government Endures €46,000 Rent Surge for London Residence

The Irish government has agreed to a significant increase in rent for the residence of its ambassador in London, with costs rising by over €46,000 annually. This sharp hike brings the total rent to approximately €508,925 per year, equivalent to nearly €10,000 per week. The decision was made by the Department of Foreign Affairs, which stated it had limited options and decided to extend the lease despite the financial impact.

Details of the Lease Extension

Records released under the Freedom of Information Act revealed that the current ambassador has resided in a property located in the prestigious Chester Square since September 2019. Following discussions in late 2022, the department expressed interest in renewing the lease. However, the landlord proposed an increase of over 11%. Department officials attempted to negotiate a smaller rise but were unsuccessful. The landlord insisted on a minimum rent of £8,400 (€9,787) per week.

In light of the negotiations, the department sought advice from property consultants to explore alternative residences. A report indicated that suitable properties for the ambassador are rarely available, typically emerging only about six times a year. During a review of the market, the advisers examined eight comparable properties leased over the past two years. Of these, only three rented for less than £7,000 (€8,156) per week, with most falling between £8,000 and £12,000.

Official Response and Financial Implications

A spokesperson for the Department of Foreign Affairs emphasized the careful consideration given to the lease renewal. They noted that based on market evidence, moving to a different property would likely incur additional costs for the Irish exchequer. Therefore, the department opted to renew the lease for a three-year period, set to last until September 2026, with a provision for early termination if a more suitable residence becomes available.

This decision reflects the challenges faced by government departments in securing appropriate housing for diplomatic staff in high-demand areas like London. As the rental landscape continues to evolve, the department remains vigilant in assessing potential options while balancing fiscal responsibility.