🦜 PerchPulse - The Ireland Market Update September 2023 🦜

A warm welcome to the September issue of PerchPeek’s Ireland Market Monthly update! 

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Here’s where you’ll find the hottest updates around employee relocation and international talent strategy, insights from our experts on housing and cost-of-living news affecting your staff, the latest trends in global mobility, and tips and tricks on ways to support your teams.

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A fly-by summary

• Ireland is the 3rd most desirable country in the EU for job seekers from overseas, according to a new Indeed study - what this means for People leaders and recruitment
• Private landlords to be offered tax breaks, and new incentives for property developers - the potential impact on relocating employees, and top tips for rental market success!
• Expansion of the €1,000 rent tax credit, new energy bill credits and childcare cost cuts - new measures expected in October’s Budget 2024, to help support relocating staff
• Average back-to-school costs are a whopping €972 per secondary-level pupil - how to help relocators with children save money on uniforms, transport and school books

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Talent strategy: Ireland ranked 3rd most desirable country in the EU for job seekers from overseas - how People Leaders can benefit

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Ireland is a very popular destination among job seekers looking for work in another country, according to a new study! Here’s PerchPeek’s summary of the findings, and how People leaders can use this information to their advantage in recruitment efforts.

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Study findings - Ireland

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• According to research from job platform Indeed, Ireland has ranked among the top 15 countries in the world for people searching for a new role in another country
• The study ranked countries in terms of the proportion of job searches carried out by people based overseas and looking to relocate for work
• Ireland ranked as the 3rd most popular country in the EU, and 14th in the world
• Overall, 11.1% of searches in Q2 2023 for jobs in Ireland came from people based outside the country

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Study findings - EU

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The number one spot was taken by Luxembourg, while Austria was the only other EU country to rank in the top 15. Oman and Switzerland took up the second and third place respectively.

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According to the Indeed study, immigration has “rebounded significantly” since the pandemic, but that the “EU is struggling to establish itself as the most sought-after destination”. 

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How can businesses in Ireland benefit?

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Like many countries, Ireland has been grappling with a significant worker shortage in recent months, meaning recruiting from overseas is a priority. This data presents a good opportunity for People teams to take advantage of the high demand for roles in Ireland among candidates from overseas, and increase recruitment efforts in the global talent pool.

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Given the clear desire of foreign job seekers to make Ireland their new home, People Leaders should also take the opportunity to review relocation strategies. Having a well thought out relocation policy that offers decent support is bound to be a strong incentive for candidates!

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Home-finding: Private landlords to be offered tax breaks, and incentives for property developers - the potential impact for home-hunting employees

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As an HR Leader supporting relocating employees, you’ll no doubt be aware of the challenges when tackling Ireland's rental market. To help offer support, we’re highlighting two proposals to boost property supply, plus their potential impact on renters, and our top tips for market success!

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1- Small landlords are to be offered tax breaks to keep them in the rental market

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Many private landlords are retiring and selling their properties, taking them out of the rental market. They’re also not being replaced as many younger people can’t afford to invest in buy-to-let properties, meaning a dwindling supply of rental properties versus very high demand.

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The Minister for Finance is keen to bring stability to the rental sector and to that end, he has confirmed that small landlords will be offered tax incentives to remain. No concrete plans have yet been announced, but keep an eye on PerchPeek’s updates for the latest news!

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2 - New ‘backstop’ initiative for developers to keep building apartments

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To incentivise developers to maintain residential construction efforts, the Minister for Housing has proposed a ‘backstop’ solution. What this means is that the state would purchase any apartments that developers cannot sell on the open market, and use them for rental housing.

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The key idea is that this would help developers secure funding, and increase the housing stock.

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PerchPeek insights

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It’s encouraging that the government is putting an increased focus on tackling the Irish rental crisis, both by incentivising private landlords to remain in the market, and by providing a ‘backstop’ for developers that should hopefully help speed up new development construction.

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However, it’ll take time for such proposals to be passed; meanwhile, home-hunters have an ongoing struggle on their hands, with very limited supply of properties pushing prices up. 

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According to Daft.ie’s Rent Report for Q2 2023:

• Average rents nationwide are up +10.7% YoY, at just under €1,800 per month
• The average rent in Dublin has risen by +8.0% YoY, at €2,344
• Rents in Galway city, Limerick city and Waterford city have soared by 11-12% YoY

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Here are PerchPeek’s top tips on how People Leaders can support relocating employees:

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• Manage employees’ expectations from the outset and encourage resilience!
• Set up groups for relocating employees to buddy up to find properties
• Offer a sufficient package to let employees stay in temporary housing for 2-3 months
• Arm them with the tools and knowledge on how to make a great impression at viewings!

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For more tips on setting up a top-notch relocation policy, check out PerchPeek’s guide here!

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Cost of living: Expansion of €1,000 rent tax credit, childcare cost cuts and other measures expected in Budget 2024, to help employees save money

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Ireland’s Budget 2024 is set to be announced in a few weeks, focusing on spending measures to make life more affordable for Irish citizens and residents. Here’s PerchPeek’s roundup of the latest updates affecting relocating employees, for HR Leaders to help support newcomers!

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While Budget 2024 won’t be officially announced until 10th October 2023, both the Taoiseach and Ministers have spoken about certain initiatives that can be expected to be included.

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Here’s the latest scoop on what we know so far, to help employees tackle the high cost of living:

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Expansion of the rent tax credit

• Considering Ireland’s rental crisis, housing is reported to be a priority for Budget 2024
• In last year’s Budget, a new rent tax credit was announced, offering a maximum €500 per year for individuals and €1,000 per year for couples
• Most renters (an estimated 400,000 people) are eligible - find out more information here
•  The Minister for Housing, Darragh O’Brien, has now pledged for this credit to be “increased and expanded” as part of Budget 2024  

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Energy bill credits

• At least one energy bill credit of €200 is expected to be provided to all households
• This follows the three payments (totalling €600) granted to Irish households last winter
• Fine Gael’s Simon Harris also stressed that “There will have to be more measures in the budget to help people address energy poverty.”

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Cuts to childcare costs

• According to the Irish Times, Taoiseach Leo Varadkar has confirmed that Minister for Children, Roderic O’Gorman, has set the target of reducing childcare costs by 50%
• Across the country, the average monthly cost of childcare is €750 per child
• However, it can cost over €1,000 in Dublin and other highly populated urban areas

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PerchPeek’s advice for People teams

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• Above all, make sure to share details of the rent tax credit with relocating employees! It appears that knowledge of the scheme is severely lacking; in a previous issue, we reported that just 25% of eligible renters had claimed their credits in 2023!

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• Offer assistance to newcomers, where needed, in setting up utilities - ensuring they’re on a cost-efficient tariff - and share details of energy bill credit schemes, once confirmed.

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• To support relocating employees with children, manage expectations on childcare costs and share details of government subsidies. Plus, read on for back-to-school savings!

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Support your talent: PerchPeek’s top tips on helping relocating employees with children save money on back-to-school costs

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September is here, and the kids are heading back to school! While an exciting time of year, it’s also undoubtedly an expensive time, with uniforms and other school contributions to consider. To support relocating employees with children - particularly those new to Ireland - here’s PerchPeek’s rundown of the typical costs to expect, and helpful cost-saving initiatives to share!

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What are typical back-to-school costs in Ireland?

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According to a recent study by children’s charity Barnardos:

• The average cost for a returning fourth class pupil (age 9-10) is €320
• For a pupil going into first year of secondary school (age 12-13) the average cost is €972

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Cost of living pressures

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As the cost of living has risen dramatically in Ireland over the last year, these costs are bound to put extra pressure on households. What’s more, those new to the country may not be expecting it, or may underestimate the scale. However, there are plenty of ways to help families cut costs!

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To help support relocating families, we’re sharing details of Government cost-saving initiatives:

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• Back-to-school clothing and footwear allowance

Around 21% of households will be eligible for a one-off payment of €160 per child aged 4-11, or €285 per child aged 12-22, towards school uniforms and footwear. Parents and guardians can find out more information and check eligibility here.

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• Free school transport

Families living over 3.2 kilometres from their local school can benefit from free transport under the school transport scheme. Free transport is also provided for SEND pupils.

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• Free school books for primary school pupils

As of this month, primary school pupils will receive free school books, workbooks and copy books, under a brand new scheme set out under the Budget 2023.

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Other top tips and cost-cutting schemes

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• School uniform swaps

Many schools and communities organise school uniform swap events - as well as being absolutely free, it’s also a much more sustainable alternative to buying brand new!

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• Free guidance from the Irish money advice service

It’s a great idea to refer relocating employees with children to MABS (the Money Advice and Budgeting Service), who provide free support for those looking for advice on money matters. They can help families come up with a sustainable household budget.

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By sharing details of these schemes with relocators with children, along with information on how to apply for relevant benefits, you’ll be setting them on the right track for settling into life in Ireland quickly and happily, with no unexpected school-related costs cropping up along the way!

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We hope you enjoyed this month’s update! 

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If you have any feedback, comments or questions about what's happening in your location, feel free to reach out via the form at the bottom of this page.

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Thanks for reading, and see you next month!

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