Housing agency Threshold has warned that tenants are at serious risk of homelessness – prompted by a spike in rents in Galway City.
According to the charity group, some tenants in the city have been hit with increased rent demands of up to 30%.
Meanwhile, new figures from property website Daft.ie show that rents in private accommodation in Galway City have surged by almost one-third since their lowest point in 2008/9, while average rents in the county are up by one-fifth since the trough.
These increases – coupled with supply that has effectively ‘dried up’ – are putting some tenants at risk of ending up with nowhere to live, Threshold has warned.
Diarmaid O’Sullivan, Services Manager for Threshold in Galway, said: “A severe shortage of supply in the private rented sector in Galway is resulting in dramatic increases in rents and is putting some tenants at risk of homelessness.
“At the end of October, a mere 80 properties were advertised as available for rent on Daft.ie for the entire city and suburbs. The average cost of a one-bed apartment in Galway was €674, a two-bed housewas €1,076 and a three-bed house was €1,190.
“The situation in the private rented sector is reaching crisis point. Supply has all but dried up and this is driving rent inflation. This is a national trend, which is reflected locally in Galway.
“Threshold regularly deals with tenants who are faced with 15%, 20% or even 30% increases in their rent. Many tenants simply cannot afford such increases and are left with little option but to move out and seek alternative accommodation. But with such a shortage of supply, this may not be possible and they can quickly fall into homelessness,” said Mr O’Sullivan.
He said that new measures introduced by the Government last week – including limiting rent increases to every two years instead of annual rent reviews, and introducing a tax incentive for landlords to take people on rent supplement payments – will help, but are not a solution.
“These measures should go some way towards easing the challenges faced by tenants, but they don’t provide a complete solution to what is a complicated and multi-faceted problem.
“Tenants in receipt of Rent Supplement are finding it nearly impossible to find properties to rent under the maximum rent levels, as set by the Department of Social Protection,” said Mr O’Sullivan.
According to the Daft.ie report, average rents in the city are now €868 per month – up 12.2% on a year ago, and almost 32% since their lowest point in 2008/9.
At the moment in Galway City, a one-bed apartment is renting for €607 per month; a two-bed house for €672; a three-bed house for €835; a four-bed house for €898 and a five-bed house for €958.
Outpatients’ concerns over reduced services at Merlin Park
Patients who use ‘Hospital 1’ at Merlin Park face uncertainty over services after nurses were re-deployed to University Hospital Galway.
The hospital unit carries out infusion and transfusion services, as well as oncology and haematology.
Saolta University Hospital Group – which operates the public hospitals –has transferred nurses from Hospital 1 in recent weeks, so that it had sufficient staff available to reopen St Anthony’s Ward at UHG.
St Anthony’s is a 28-bed ward that had been closed all during Covid-19. It has now been re-opened, using redeployed nurses from Hospital 1, to cater for the return of essential procedures at UHG.
Saolta has argued that it is trying to maintain core services at UHG and it is re-deploying staff from elective areas in Merlin Park.
Merlin Park and UHG combined is Galway University Hospital – essentially the same workplace for industrial relations purposes – and is part of the same umbrella of hospitals in the West and North West run by Saolta.
A number of outpatients who have used Hospital 1 have told the Galway City Tribune they are concerned with the change, and the implications it might have on the services they receive.
Hospital 1 is a medical ward that offers a Monday to Friday service on the first floor of the main building on Merlin Park grounds.
They do infusions and transfusions and treat patients with MS, those who are anaemic, as well as oncology and haematology.
Those impacted by the reduced service at Hospital 1 also include people with blood disorders; people with blood cancers or leukaemia; and people with conditions such as myelodysplasia.
“Neurologists use it to observe patients who’ve had seizures. There’s a multitude of consultants who would’ve used Hospital 1 for various investigative procedures. Rather than going into hospital in UHG, occupying a bed, Hospital 1 is used for infusions, and you could be in and out in a day, or stay a couple of nights,” a source said.
The Irish Nurses and Midwives Organisation (INMO) has called on Saolta to put in place a contingency plan.
Anne Burke, INMO, Industrial Relations Officer, Western Region, confirmed to the Galway City Tribune that some of her members have been re-deployed from Merlin Park to UHG, because of a massive shortage of nurses at the Newcastle site.
“If they pulled the Hospital 1 nursing staff out of UHG today, St Anthony’s would have to close and that’s the nub of it. They simply do not have the staff to do it,” explained Ms Burke.
“The staff have redeployed. They were initially told it would be for two weeks. But clearly, that won’t be sustainable in the context of massive vacancies at the UHG site.
“There’s bound to be a very definitive impact on the service. We have members already working overtime, and part-time workers who have upped their hours. But you are only flogging a dead horse if you’re asking people to work over and above. There’s only so much overtime you can do – no matter what money is offered – in the context of the conditions on the wards,” she said.
Asked when Hospital 1 might return to ‘normal’ staffing levels, Ms Burke said: “When is it likely to revert? There’s a big question mark over it, and our position is that it’s an unanswered question in the context of the deficit of nurses at UHG site and the attempt by management to maintain core services.
“That might be of cold comfort to those who depend on transfusions in Hospital 1. But they are going to have to put in a contingency plan about all of this and how it’s going to be managed and how Joe and Mary Bloggs who is looking for an infusion or transfusion, how are they going to get that. They cannot just be left in abeyance. They have to receive some element of treatment. Whether that is done through engagement with the private hospitals again, we don’t know.”
The recent cyber attack on the HSE has hampered INMO’s ability to communicate with hospital management.
Hundreds of new apartments in Galway will not be available to buy
The backer of the Crown Square scheme in Mervue is planning a massive ‘build to rent’ housing scheme as part of the development, with 345 apartments.
Padraic Rhatigan was previously granted permission for 288 apartments on the site but has now applied for a modified and higher-density development, with blocks ranging from four to nine storeys in height.
There will also be a neighbourhood facility with a gym, a primary care medical centre with pharmacy, a ‘working from home’ lounge, games room and a creche.
There will be 240 two-bed apartments, 86 one-beds and 19 three-beds, all of which will be specifically for the rental market and not available to purchase.
The plans include three blocks ranging from five to nine storeys in height, with garden courtyards.
To meet social housing requirements, the developer plans to transfer 35 of the apartments (20 two-bed, 10 one-bed and 5 three-bed) to Galway City Council.
A total of 138 car-parking spaces have been allocated on the lower basement levels of Crown Square for residents, and there will be 1,200 secure bicycle parking spaces across the development.
The planning application was made directly to An Bord Pleanála under ‘Strategic Housing Development’ legislation, which allows for the Board to decide on applications residential developments of more than 100 units following initial consultations with the local authority.
According to Rhatigans, the property market has changed since it was granted permission in November 2019 for 288 apartments in three blocks ranging from five to eight storeys in height.
“The rationale behind this proposal stems from the changes to market modelling and the demand for residential accommodation which have arisen since the previously approved application.
“These amendments … are being proposed following a review of the economic viability of the overall scheme,” the applicant previously said.
According to the new application, the scheme is intended to create a “distinctive new city quarter”.
“Important pedestrian and cyclist connections are also incorporated into the design by creating links between Monivea Road and Joyces Road providing an accessible street network for walkers and cyclists. It is considered that the proposed development would bring significant socio-economic benefits to the community,” the application reads.
The apartments constitute Phase 2 of the Crown Square development. The first phase is already under construction and includes a 180-bed hotel with bar, restaurant and conference facilities and five office blocks with space for up to 3,500 workers.
Mr Rhatigan recently told An Bord Pleanála that despite uncertainty in the market with hotels at the moment due to Covid-19, there is still a plan to proceed with the hotel in Phase 1 “and broadly with the masterplan for the overall scheme”.
He explained that the substructure of the hotel was currently being put in and that Rhatigans are in discussions with a few potential operators, but are not as far along in the discussions due to the delays brought about by Covid-19, however, it is believed to be still viable.
It remains the intention to be a high-quality hotel with a good-branded operator on board, he told the Board.
Two of the buildings in Phase 1 are expected to be completed with landscaping and occupiers moving in at the end of this year.
City Council ‘does not outbid’ private buyers in housing market
Charities that buy houses in Galway for homeless people are not distorting the property market, a senior official at City Hall has said.
Dermot Mahon, Acting Director of Services for Housing at Galway City Council, insisted that Approved Housing Bodies (AHB), which provide and manage rented social houses, do not outbid private buyers in the housing market.
He was responding to queries from elected members before they approved a loan of almost €1 million to facilitate three AHBs to buy four city homes.
“We don’t engage in a bidding process,” Mr Mahon said. “We take a value, and we will not exceed that value. If there are other purchasers we will not engage, and we will not exceed it [valuation].”
He said that there is a cap in all local authority areas set by Government regarding the maximum amount that can be paid to purchase houses for use as social housing rental properties.
Councillors agreed to approve loans of €930,000 for the purchase of four homes.
The agreement included €202,355 to Galway Simon for a two-bed house off the Western Distributor Road in Knocknacarra; some €189,264 to Cope Galway for a one-bed apartment on Dominick Street; and €246,528 and €292,279 respectively to Peter McVerry Trust for two-bed and four-bed houses in Doughiska.
Funding is provided by way of a grant from the Department of the Housing to the local authority who provides the funding to the relevant AHB in the form of a 30-year mortgage. Loan charges are waived provided the terms of the scheme are complied with.
“All properties have been supported by an independent valuation and represent good value for money,” said Mr Mahon.
He said that Simon and Cope were two organisations that had “excellent records” in Galway.
Mr Mahon said that Peter McVerry Trust is “in the market for more property” in Galway.
The Trust already operates the Modular Family Hub in Westside on behalf of the Council, which is a temporary facility to house people who are homeless in accommodation other than hotels and B&Bs.
Two families from the Westside Hub will be relocated to the two new properties bought in Doughiska.
In response to several questions from councillors, Mr Mahon insisted that the method of allocating housing was “transparent”.
“There is no queue skipping – it is done in consultation with us,” he said. It is based on need and length of time on the housing waiting list.
Cllr Alan Cheevers (FF) called on the Council to carry-out full surveys of houses before they are allocated to tenants.
He pointed to a recent situation in Doughiska where homes were allocated to tenants but the properties were ‘faulty from the get-go’, which was not acceptable. The issue was decided on in the courts, he said.
Mr Mahon said the four new properties being discussed were compliant with planning permission and had been assessed by engineers.