First-Time Buyers opting for sustainable homes and green finance
- 60% of first-time buyers considering green mortgages to finance their home
- 90% view the BER of their future home as a deciding factor pre-purchase
- 85% likely to undertake home improvements post-purchase to increase BER rating
The majority (60%) of first-time buyers are now considering green mortgages when purchasing their future homes according to research commissioned by Bank of Ireland. 90% of first time buyers believe BER (Building Energy Rating) is a deciding factor when purchasing a property, and more than four in five (85%) are likely to undertake home improvements post-purchase to improve their home’s BER.
Sustainably motivated decisions are even higher among younger first time buyers, with 65% of 25–30-year-olds thinking about green finance options for their new home. The research, conducted by RED C for Bank of Ireland, also indicates that the highest proportion of first-time buyers (34%) are interested in buying a second-hand property rather than a new build (28%), or self build (16%). The proportion of first-time buyers considering self build has fallen year-on-year since 2018 when it accounted for 27%.
Despite their intentions surrounding BER improvements, 47% said that the biggest barrier is the high cost associated with the work, while 42% highlighted availability of savings as the standout challenge.
Discussing the findings, Alan Hartley, Director of Home Buying, Bank of Ireland commented: “It is very encouraging to see how first-time buyers are prioritising green finance and the sustainability of their home. Purchasing your first home is a big decision, and it’s reassuring that buyers are so focussed on future-proofing their homes as well as enhancing their financial wellbeing and protecting the environment.
“Banks have a key role to play in fully informing consumers about the options and benefits around green finance. With this in mind, we recently launched a new online hub to help customers with the transition to more sustainable practices. I would encourage any home buyer to research the options and get in touch with us for advice on what might work best for them. Bank of Ireland is committed to helping our customers, colleagues and communities in the transition to a greener world.”
The research also shed light on saving timelines among new buyers, with the majority (38%) now saving for their mortgage between two to four years, while almost one fifth (19%) have been saving between one to two years, and 12% are saving from seven to 12 months. The data suggests a growing prevalence of first-time buyers purchasing their first home on their own in recent years, with 27% now looking to purchase independently versus 19% in 2017. In contrast, 69% plan to buy with a partner which is at its lowest level in six years (79% in 2017). 74% are hoping to buy outside Dublin, compared to 67% in 2017.
Bank of Ireland launched Ireland’s first green mortgage in 2019 and green mortgages accounted for over half of its total new mortgage drawdowns in the first half of 2023. The Bank’s new green hub for is here – https://personalbanking.bankofireland.com/personal-green-hub/
About the Research
Research was conducted by RED C (13th and 16th of October 2023) with 203 people aged 25-45 who are planning to buy or build their first home in the next few years.