Retrofit: Energising the value of your home
Super solar: PV has a high capital outlay that has increased in recent years (battery prices remain high).
Together with smug environmental feel-good and perceptible comfort, the additional benefits of retrofitting your home are greater than you think.
It’s no longer anecdotal — the BER is gaining real currency in the property market, as buyers look for homes that have firmly certified energy performance credentials.
Estate agent, chartered surveyor and registered valuer Majella Galvin, is Director of DNG Galvin, Chair of the Society of Chartered surveyors (Southern Region), and a member of the Royal Institution of Chartered Surveyors. Working in the property sector for over a decade, she witnesses first-hand the impact of energy efficiency with lower carbon emissions on buyer behaviour and property values.
“Research by Dublin based software firm Geowox has highlighted the substantial price difference between energy-efficient homes (BER class A-B) and non-efficient homes (BER class C-G)” Majella reveals.
“On average, energy-efficient homes are priced 26.6% higher, equivalent to an impressive €82,000 difference. Additionally, these homes have experienced a remarkable year-over-year price growth of 4.6%, underscoring their increasing appeal and value in the current market. The report was based on Q2 2002 – Q2 2023, and during that period average price growth was 9.7%, with rural areas seeing the highest increase.”
So how do buyers recognise a lean green, super-home or the potential to create one?
“A BER rating has evolved into a fundamental factor within a buyer's property search” Majella explains. “Frequently, it plays a determining role in their decision to purchase."
The reason behind this shift is the heightened environmental consciousness among buyers actively seeking residences that promote sustainable living.
"The availability of green mortgages is wielding a significant influence in attracting buyers to energy-efficient homes too, especially considering the backdrop of rising interest rates. We have noticed an increase in direct requests for access to the Advisory Report that accompanies a home's BER. The redesigned format of the Report has significantly enhanced its comprehensibility, making it more accessible to individuals looking towards leveraging these insights as potential avenues for improving a property's BER.”
The position of a house, its overall condition and the prevailing market all have their part to play.
With so many factors in play, are buyers markedly excited by sustainable inclusions like PV-Solar or say a heat pump present in an extant house on her books?
“Absolutely,” Majella responds. “These features serve as major selling points. Individuals are increasingly valuing the presence of sustainable elements, even in older homes - recognising the potential for substantial long-term cost savings.”
Are the achieved price differences between say a B2, the goal of the One-Stop-Shop device, and say a typical D rating really showing on the ground in Majella’s experience?
“In the majority of instances, yes,” Majella reveals. “The price differences are indeed evident. However, exceptions do exist, particularly in cases where properties boast exceptional locations such as coastal areas. While location remains a dominant factor, the BER is emerging as a significant consideration for buyers.”
SEAI grant aid, can be used in concert with the Vacant Property Refurbishment Grant. This combination seems to be getting some traction now as payments are starting to follow on applications and completions.
Majella agrees. “The increase in the Vacant Property Grant in May 2023 to a range of €50,000 to €70,000 has rendered renovations more economically feasible.”
Majella signals caution here as any project even combining SEAI grant aid and the Vacant Property Grant, must be proven to be financially viable to make sense as a refurbishment.
She adds: “Financial institutions favour energy-efficient properties, creating hurdles for buyers in obtaining funds for this grant”.
Take professional advice. Now, let’s also take a look at some seminal star improvements, grant aided by the SEAI, that together with making it a nicer, cheaper place to live, could push up the value of your home-sweet-home.
