Sustainability a key priority for first time buyers

Prospective buyers focused on BER ratings and green mortgage
More than one third hope to buy or build within the next six months
Almost half are paying between €1000 and €2000 per month in rent

First time buyer research commissioned by Bank of Ireland reveals that sustainability is a key priority. Nearly nine in ten (87%) first time buyers say the BER rating of their future home is important, and six in ten (59%) have considered a green mortgage. Among those looking at second-hand properties, almost nine in ten (88%) plan to undertake home improvements to boost energy efficiency.

While the cost of property remains the biggest challenge, cited by 61% of respondents (up from 41% in 2017), more than one third hope to buy or build within the next six months, and 84% have a deposit saving plan in place, an increase from 74% in 2017. Half are saving between €500 and €1000 each month, and 89% feel secure about their ability to manage future mortgage repayments. This is unsurprising given almost half (48%) of those renting are currently paying between €1000 and €2000 per month in rent, up from one in five (20%) in 2017.

Remote work has reshaped priorities for prospective first time buyers. 40% are reconsidering where they want to live and 25% rethinking the type of property due to the option to work from home or remotely, while it has accelerated the plans to buy for 22%. Interest in apartments has grown, and more buyers are purchasing solo, reflecting a broader mix of nationalities and changing household dynamics.

Alan Hartley, Director of Home Buying, Bank of Ireland commented: “First-time buyers are not just thinking about getting on the property ladder, they’re planning for greener homes, lower energy bills and a more sustainable future. It’s encouraging to see so many buyers prioritising BER ratings and exploring green mortgage options. We’re seeing strong demand for our EcoSaver Mortgage, which rewards home owners with lower mortgage rates the more energy efficient their home becomes.

“The savings habit is even stronger now in first time buyers than in the past and our MortgageSaver product is designed specifically for people saving for a deposit. It pays a variable interest rate of 2% on your savings but also provides bonus interest of €2,000 if you draw down a Bank of Ireland mortgage. Last year we paid out 2,796 bonuses – that’s over €5.5million for home buyers towards their furniture and fittings.”

When it comes to personalising their space, the living room is the top spot first time buyers are excited to make their own, followed by the kitchen, bedroom, and garden. A garden or outdoor space tops the wish list, followed closely by plenty of natural light and energy-efficient elements.

Top motivations are having a place of their own (28%), starting or growing a family (17%), and gaining more control over their living environment (15%).
69% think they will feel more settled and secure when they become a homeowner and 59% said they will have a greater sense of independence and control.
When asked which part of their home they are most excited to make their own, 31% said living room, 22% said kitchen, 14% said bedroom, 13% said garden.
Favourite features buyers are hoping to find include a garden or outdoor space (19%), plenty of natural light (17%), and energy-efficient elements (12%).
65% plan to take on painting and decorating themselves, 56% will tackle furniture assembly or upcycling, and over half are ready to roll up their sleeves for garden projects.

The research, one of the longest running surveys with first time buyers in Ireland, was conducted for Bank of Ireland by RED C with 200 respondents.

Ends

Notes to editor:
Research was conducted by RED C between 15th-18th September with 201 people aged 25-45 who are ‘planning to buy or build their first home in the next few years’.