Rising number of energy-efficient homes may fuel 'green mortgage' market

Electricity was the main space heating fuel for 91% of audited dwellings constructed between 2020-2024.

The so-called ‘green mortgage’ market may increase following a rise in the annual number of energy rating audits carried out on homes, Central Statistics Office (CSO) figures suggested.

The CSO said the number of audits reported in the last three months was 9% higher when compared with April to June in 2023.

Dwellings built between 2015-2019 and 2020-2024 were substantially more energy efficient than those from earlier periods, with 95% and 99% respectively receiving an A rating, the figures showed.

“In comparison, 36% of audited dwellings built between 2010-2014 received an A rating, and just 3% of those from 2005-2009,” said Kevin Hunt, statistician in the climate and energy division at the CSO.

The three main lenders have tweaked or reduced their green-mortgage offerings this year in a bid to swell their loan books as interest rates are set to fall and competitors prepare to enter the retail banking market in the Republic.

For example, PTSB announced a three-year fixed rate for new green mortgage customers who are purchasing a house with a building energy rating certificate (BER) of A1 to B3. Green mortgage customers accounted for 30% of the bank’s total new mortgage lending last year.

Meanwhile, Bank of Ireland announced an updated pricing scale for its ‘EcoSaver Mortgage’ which is applicable to all properties with any building energy rating (BER) from A to G.

Additionally, the CSO figures found the highest proportions of A rated dwellings were in Kildare at 26%, Meath at 24%, and Dublin County at 23%, in the quarter ending in June, while the lowest were in Leitrim and Cork City.

Electricity was the main space heating fuel for 91% of audited dwellings constructed between 2020-2024.