Cost of energy tops list of concerns for housebuyers, survey reveals

Three in four respondents to the survey say they are more inclined to pay close attention to a Building Energy Rating — a measure of how cost-effective it is to heat a building — when considering the suitability of a house purchase. File picture: iStock

Energy costs are now the primary concern of house buyers, as the public reels from 18 months of soaring utility bills, according to a new survey of house hunters.

A clear majority of respondents also stressed they plan to power their homes using renewable energy sources such as solar panels.

The survey of 2,509 people, conducted by property site MyHome.ie, found  just under two out of three people are planning to power their home with renewables, with 75% saying they are more inclined to pay close attention to a Building Energy Rating — a measure of how cost-effective it is to heat a building — when considering the suitability of a house purchase.

It is “not surprising” to see cost-of-living concerns dominate a property survey given “we know that sentiment in the property market tends to mirror that of the overall economy”, said Joanne Geary, managing director of MyHome.ie.

She said that point is further illustrated by the fact that searches by energy rating on the MyHome.ie website increased by more than 35% in the first two months of 2023 compared to the final two months of last year.

The good news is that the focus on renewable energy, as part of the property search process, is a fantastic long-term trend for both the market and the environment as a whole,” Ms Geary added.

The survey also posed questions regarding overall consumer appetite within the housing market, and found 54% of those surveyed welcomed the relaxation of the Central Bank’s mortgage lending rules.

Last October, the financial regulator eased those rules, meaning first-time buyers can now borrow up to four times their income when purchasing their home, up from the 3.5-times standard which had been in place since the rules were first introduced in 2015.

However, 56% of respondents said they were worried the ongoing series of interest-rate hikes by the European Central Bank would affect their ability to buy, while 70% of renters looking to buy said they have had to look beyond their favoured location due to price concerns.

“Even though over half of our respondents have finance and are ready to buy, just 13% believe the next year will be a good time to buy property,” Ms Geary said.