Remote Work Shapes First-Time Buyers’ Home Preferences

Remote work continues to influence the priorities of first-time homebuyers, despite a trend among some companies to encourage a return to the office. According to research commissioned by the Bank of Ireland, nearly nine out of ten prospective buyers consider the Building Energy Rating (BER) of a potential home to be an important factor. This focus on energy efficiency is accompanied by an increasing interest in green mortgages, which tend to offer lower rates compared to traditional home loans.

The survey, conducted by Red C in September 2023, revealed that remote working options have significantly reshaped the housing market for new buyers. Approximately 40% of individuals looking to purchase a home are reconsidering their ideal location due to the flexibility of remote work. Additionally, 25% are rethinking the type of property they wish to buy, which is fostering a growing interest in apartments and single-person purchases.

Alan Hartley, Director of Home Buying at Bank of Ireland, emphasized how first-time buyers are not only eager to enter the property market but are also prioritizing greener homes and lower energy costs. “The savings habit is even stronger now in first-time buyers than in the past,” he stated, highlighting a shift towards sustainability and energy efficiency that resonates with today’s buyers.

The data underscores that the cost of property remains the most significant hurdle for potential buyers. More than one-third of those surveyed hope to buy or build a home within the next six months, with 84% already having a deposit savings plan in place, an increase compared to 2017. Among these aspiring homeowners, half are saving between €500 and €1,000 monthly, and 89% feel confident about managing future mortgage repayments. This confidence is particularly notable given that nearly half of renters report paying between €1,000 and €2,000 in monthly rent.

As first-time buyers navigate the housing market, their motivations are clear. The desire for a personal space ranks highest, followed by aspirations to start or expand a family, and the wish for greater control over their living environment. In fact, 70% of respondents believe homeownership will provide them with a sense of stability and security, while 60% feel it will grant them greater independence.

When asked about the aspects of their future homes they are most excited to personalize, 31% of buyers cited the living room as their top priority, followed closely by the kitchen at 22%, and the garden at 13%. Features such as outdoor space, ample natural light, and energy-efficient elements are highly sought after, reflecting the evolving preferences of a generation that values both comfort and sustainability.

Overall, the findings from the Bank of Ireland research illustrate a changing landscape for first-time buyers, as they increasingly prioritize both remote working capabilities and energy-efficient living spaces. This trend is likely to continue shaping the housing market for years to come, as new buyers balance the challenges of affordability with their aspirations for a sustainable and comfortable home environment.