Covid-19: Irish Construction, Property & Retail Updates

The world has changed.

Like everyone else, the Castlehaven Finance team is working to stay reliably informed (through www.hse.ie), ensuring that we are adopting the most stringent safety practices and adhering to all government advice and guidelines.

While our primary focus is on preventing any further spread of the virus in order to keep our communities safe, there is an industry imperative that cannot be ignored.

As a business with responsibility not only to our team of 20 staff, but also to the vital development projects we support, we feel a shared sense of duty to find a way to maintain and strengthen the continuity of our service. Technology plays a big part in this but, as it ever was, human spirit and resilience makes it happen.

CONSTRUCTION SITES

As of March 20th, Ireland is in a stage of Covid-19 containment. The most up-to-date industry and government guidance indicate that outdoor construction sites are likely to remain active, unless any individual site is directly impacted by an outbreak on-site. We know that this is a threat contractors are taking seriously, with more hand-washing and sanitising stations being installed and HSE guidance on social distancing being adhered to on-site. Significantly, the main industry unions are supporting keeping their members safely on-site.

The CIF summed this up well by stating that “The industry has tens of thousands of employees operating on construction sites around the country. These employees are crucial to both the economy and society as they deliver critical housing and infrastructure. Construction companies are implementing the Government’s guidelines for workplaces in dealing with Covid-19 in the overall effort to flatten the curve…Our members will continue to deploy staff onto construction sites and take every possible step to ensure the safety of their employees and the general public whilst delivering essential construction activity.”

PROPERTY MEASURES

Earlier this week Ireland’s five main mortgage lenders (Bank of Ireland, AIB, KBC, Permanent TSB and Ulster Bank) introduced the following measures:

1. Payment breaks of up to three months for business and personal customers affected by Covid-19.

2. A simplified application process to make it as easy as possible for businesses and personal customers impacted by Covid-19 to receive support from their banks.

3. Any Covid-19 application for a payment break will not adversely impact the customer’s credit record and the banks reporting of these facilities.

4. Banks will also defer current court proceedings for three months.

Another key development over the past 24 hours was an undertaking from credit-servicing companies managing loans for so-called vulture funds to offer measures such as payment breaks to customers affected by the virus.

Also, yesterday the government announced a temporary ban on evictions as part of a series of measures to protect residential tenants at this time. Housing Minister Eoghan Murphy (who is in self-isolation at this time) also announced a moratorium on rent increases and increased the notice period for tenancies of less than six months from 28 to 90 days. New legislation is expected over the next week.

Finally, AIB postponed the planned sale of €1.3 billion worth of problem mortgages amid the Covid-19 chaos.

RETAIL ACTION

Some of Ireland’s best-known retailers have called for a 12-month rates freeze in order to avoid “an economic catastrophe”, according to a letter sent by the Retailers Rates Action Group to Local Government Minister Eoghan Murphy and copied to Finance Minister Paschal Donohoe in recent days.

Finally, it is important to point out that this is an evolving threat and, as such, advice and procedures will update hourly or daily, as needed.  Please be assured that the Castlehaven Finance team remains fully contactable and available to clients through our usual email and phone numbers.