Irish Embassy Faces Urgent €46,000 Rent Hike in London

URGENT UPDATE: The Irish Department of Foreign Affairs has confirmed a staggering €46,000 increase in the annual rent for the Irish Ambassador’s residence in London. This sharp rise, bringing the total to €508,925 per year, translates to nearly €10,000 a week, as officials scramble to address escalating housing costs amid a tight market.

The new lease, signed just recently, represents a 10% hike, which the department had little choice but to accept due to a lack of better options. An internal report released under Freedom of Information (FOI) indicates that the Irish Ambassador has been residing in the property located in Chester Square since September 2019.

In late 2022, the Department expressed interest in extending the lease, but the landlord demanded a “substantial increase” of over 11%. Despite efforts to negotiate a smaller increase, officials reported that the landlord insisted on a minimum weekly rent of £8,400 (approximately €9,787).

The report highlights the challenges faced by the department, noting that a search for alternative residences yielded limited results. Property advisers revealed that suitable homes for the Ambassador come on the market only a handful of times each year, and many recent listings have been priced significantly higher. The market has hardened post-Covid, with landlords increasingly unwilling to offer rent reductions.

Officials examined eight comparable properties over a two-year period and found that only three had been rented for less than £7,000 (around €8,156) per week, while most ranged from £8,000 to £12,000. Eleven other options presented were either marginally cheaper or deemed less suitable, with potential moves incurring additional costs for fire safety and security improvements.

A department spokesperson stated, “Having given the matter careful consideration, it was clear that a move would have no added benefit and would incur an additional cost to the Irish Exchequer.” Consequently, the department opted to renew the lease for a three-year period, extending until September 2026, with a break clause allowing for earlier termination should a more favorable property become available.

This urgent development not only highlights the financial pressures faced by diplomatic missions but also underscores the ongoing challenges in the London housing market post-pandemic. As international relations continue to evolve, monitoring the implications of such decisions remains critical for taxpayers and stakeholders alike.

Stay tuned as more updates emerge on this pressing issue affecting Ireland’s diplomatic presence in the UK.