Nearly 90% of first-time buyers value BER (building energy rating) ratings of homes, and the biggest obstacle to home ownership is the cost of property, new research has found.
The number of prospective home buyers paying between €1,000 and €2,000 in rent has more than doubled since 2017, according to research conducted on behalf of Bank of Ireland.
In 2017, just one in five prospective home buyers was paying rent of between €1,000 and €2,000. The research this year has seen come close to half, at 48 per cent.
The research was conducted by Red C in mid-September as part of a long-running survey series. More than 200 people aged between 25-45 who expressed plans to ‘buy or build their first home in the next few years’ were polled.
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High rents have resulted in those seeking to buy property no longer regarding managing future mortgage payments, with 89 per cent feeling secure about their ability to do so. On top of high rents, 50 per cent of the cohort reported saving between €500 and €1000 each month.
The cost of available homes remains the biggest challenge for young people, the bank’s research found, but the number of home buyers citing it has dramatically increased from just 41 per cent in 2017 to 61 per cent this year.
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Increasingly, those hoping to buy in the coming years are financially prepared to do so. While more than a third of respondents are hoping to build or buy in the next six months, 84 per cent have a deposit saving plan in place - up from 74 per cent in 2017.
Amid a challenging rental market, 69 per cent of young people expressed the expectation that they will feel more settled and secure upon owning property while 59 per cent expect it will give them a greater sense of independence and control.
“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,” said Alan Hartley, the director of home buying at Bank of Ireland.
He said it is encouraging to see “so many buyers prioritising BER ratings” and noted that savings habits among hopeful first time buyers are stronger now that in the past.
It is not just environmental concerns that are shaping home buyers’ priorities. Remote working opportunities also also influencing purchasing decisions, as 40 per cent of the cohort admitting they are reconsidering where they want to live based on the option of working from home or remotely.
A quarter of respondents also reported that remote working is leading to them rethinking the type of property they would be interested in buying, with just over one fifth (22 per cent) of prospective home buyers accelerating their the plans to buy as a result.
