Dublin House Retrofit to B-Rating Adds €12,200 to Asking Price
UCD economists found retrofitting a Dublin house from a D to B BER adds €12,200 to its asking price, potentially covering most costs after grants. This aims to boost retrofitting in Ireland, where high costs are a barrier. The study provides updated evidence of investment return for sellers.
Economists at University College Dublin (UCD) have modeled how retrofitting impacts house prices, aiming to incentivize more upgrades in Ireland where progress is behind target due to high costs.
Their modeling indicates that retrofitting an average three-bedroom, semi-detached Dublin house, valued at €470,000, from a D to a B Building Energy Rating (BER) adds €12,200 to its likely asking price. This amount could cover 43% to 100% of the work's cost after Sustainable Energy Authority of Ireland (SEAI) grants. Generally, a 10% reduction in energy use, e.g., D1 to C3 BER, adds 0.6% to property value, according to a study in Sustainable Futures.
The UCD research used 11,000 Dublin home asking prices from 2019-2022. While SEAI and retrofitting firms cite older studies, this paper provides updated evidence that retrofitting offers an investment return for sellers. However, the Economic and Social Research Institute highlights upfront costs and intrusiveness as significant barriers. Researchers cautioned their findings show statistical association, not causation, and other factors like non-energy renovations or buyer preferences could also influence prices. They noted that in Dublin's high-demand market, energy performance might be less influential for buyers until more choice is available. SEAI stated that while studies vary, all indicate a «positive uplift in house prices» from energy efficiency work. Heating homes accounts for about 12% of Ireland's greenhouse gas emissions, and a BER assessment is mandatory for house sales in Ireland.