Irish Ambassador's residence in London hit with €46,000 rent hike
The department said it had little choice but to agree to the sharp increase even though it brought the cost of the property close to €10,000 per week.
The new lease of €508,925 per annum – a rise of 10% – was signed off on because no better options were available, according to records released under FOI.
An internal submission said that the Irish Ambassador to the UK had been living in the property in leafy Chester Square since September 2019.
In late 2022, the Department of Foreign Affairs said they were interested in extending the lease.
While the landlord was happy for them to stay on, they said they wanted a 'substantial increase' in rent of over 11%.
Department officials tried, 'actively but unsuccessfully,' to negotiate a much smaller increase in rent.
The submission said: 'After several months, the landlord indicated that they would not accept any offer below £8,400 (€9,787) per week.'
At the same time, the department had asked a property adviser to see if there were any other suitable properties available in London.
A report said the type of residence needed for the Ambassador was only likely to come on the market half a dozen times each year.
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The submission said: 'The market had hardened in the wake of Covid, with landlords less inclined to offer inducements or rent reductions to attract tenants.'
The property advisers examined eight properties in the area that had been let over a two-year period.
They said only three of them had been leased for less than £7,000 (€8,156) per week and the majority ranged from £8,000 to £12,000.
Eleven alternative properties were put forward, a number of which were 'slightly' cheaper than the existing residence.
The submission said: 'It is very challenging to find an equally suitable property at a lower rent based on market evidence.
'A move would probably necessitate additional fire safety and security improvements, at a cost to the exchequer, in addition to the purchase or rental of furniture.'
It said the best-case scenario was that such a move would be 'cost neutral' and at worst 'less suitable and more expensive.'
The submission also said the department was looking to buy a residence outright but that this was not something that could be done quickly.
'Although purchasing a property might be financially viable in the longer term, it has not been possible to identify such a property in recent months,' the submission said.
'Purchasing a property is not currently a viable option.'
Asked about the lease extension, a spokesman for the Department of Foreign Affairs said: 'Having given the matter careful consideration, and on the balance of market evidence available at the time, it was clear that a move would have no added benefit and would incur an additional cost to the Irish Exchequer.
'Accordingly, the Department decided to renew the lease for a three-year period to September 2026, with the option to break at relatively short notice should a more suitable alternative become available.'
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